Can I use gift money for a down payment on a conventional loan?

Yes, for primary residence purchases. A donor — typically a family member — provides a signed gift letter confirming the funds are a gift with no repayment expectation. For conventional loans with less than 20% down, some of the down payment must come from the borrower's own funds unless specific exceptions apply. FHA and VA allow 100% gift down payment.

How long do I need to be employed to qualify for a mortgage?

Most lenders require 2 years of employment history in the same field, but it does not need to be the same employer. Recent college graduates entering their field of study can sometimes qualify with less than 2 years' history. Gaps in employment are evaluated case by case — a recent return to work typically requires 1 paycheck to document reinstatement.

Does getting pre-approved hurt my credit score?

A hard credit pull for a full pre-approval typically drops a score by 2–5 points temporarily. Multiple mortgage inquiries within a 14–45 day window are grouped into a single inquiry for scoring purposes, so shopping with multiple lenders in that window has minimal additional impact. Dan starts with a soft pull for pre-qualification, which has no score impact.

Can I buy a house with a 580 credit score in California?

Yes, through an FHA loan. The FHA minimum is 580 with 3.5% down (some lenders require 620+). Conventional loans generally require 620 minimum. With a 580 score, FHA is typically the most accessible path. Working on credit in the 60–90 days before applying can improve the qualifying rate significantly.

What is the minimum down payment to buy a house in Bakersfield?

Veterans can buy with 0% down using a VA loan. USDA loans also offer 0% down for qualifying rural and suburban properties around Bakersfield. FHA loans require 3.5% down (580+ credit). Conventional loans require as little as 3% down with qualifying income and credit.

Can part-time income be used to qualify for a mortgage?

Yes, if you have a 2-year history of part-time employment and the income is expected to continue. The income is averaged over 24 months. If the hours or rate of pay has recently decreased, lenders may use the lower current figure rather than the 2-year average.

12 Biggest Mortgage Mistakes Homebuyers Make (And How to Avoid Them)

I've seen good loans fall apart two days before closing because someone bought a truck. A $45,000 auto loan, signed the week before closing, torpedoed a debt-to-income ratio that had been perfectly structured for six months. The buyers lost the home. The seller was furious. Everyone's time was wasted. These disasters are preventable, but only if you know to look out for them.

Mistake 1: Changing Jobs During the Loan Process

Lenders verify employment at application and again right before closing. If you change jobs between pre-approval and closing, even for more money, it can require a full re-underwrite and delay or derail the loan. Going from W-2 to self-employed is especially damaging. If you're considering a job change during your transaction, tell me first. We'll figure out the timing together.

Mistake 2: Opening New Credit After Pre-Approval

Every new credit account or hard inquiry can lower your score and increase your reported debt obligations. Opening a credit card, financing furniture, or signing up for a store card during the loan process can change the numbers the underwriter approved. Don't open anything new until after you close, not even the home improvement card at the hardware store.

Mistake 3: Making Large Purchases, Especially a Car

This is the truck story. A new car payment can push your debt-to-income ratio over the qualifying threshold. On a $380,000 loan, even a $400/month car payment can be the difference between approval and denial. No major purchases until the keys are in your hand.

Mistake 4: Moving Money Without Documentation

Underwriters must source every large deposit in your bank accounts. If you move $20,000 from savings to checking, transfer from a parent, or sell something for cash, every dollar needs a documented paper trail. Undocumented deposits get flagged and can delay or block closing. Don't move money without telling me first so we can document it properly from the start.

Mistake 5: Making Offers Without Pre-Approval

Pre-approval isn't a formality in this market, it's a prerequisite for competitive offers. Sellers and their agents will not seriously consider an offer from an unverified buyer. A verbal quote from an online calculator is not pre-approval. Full pre-approval means your income, assets, credit, and employment have been verified.

Mistake 6: Confusing Pre-Qualification With Pre-Approval

Pre-qual is usually just a conversation, no documents reviewed, no credit pulled, no underwriter involved. Pre-approval means verified documents and a credit check. They are not the same thing. In a competitive market like Bakersfield, submitting an offer with a pre-qual letter instead of a pre-approval letter tells the seller you haven't actually been vetted.

Mistake 7: Draining Your Savings for the [Down Payment](/calculators/down-payment)

Lenders want to see reserves after closing, typically two to six months of mortgage payments left in the bank. Buyers who zero out their accounts for the down payment can get denied even after getting pre-approved. Plan your down payment so you still have reserves left over. If you're short on both, DPA programs can help preserve your cash cushion.

Mistake 8: Ignoring APR and Lender Fees

A low rate with high fees can cost more over five years than a slightly higher rate with minimal fees. Always look at the Loan Estimate, every lender must provide one within three business days of application. Compare the total fees, not just the headline rate. Section A of the Loan Estimate shows origination charges and discount points clearly.

Mistake 9: Skipping the Rate Lock

Rates move daily. Once you have an accepted offer, lock your rate. Floating past an accepted offer and hoping rates improve is speculation, and it often goes the wrong way. Most standard 30 to 45-day locks are free. Extensions cost money, so make sure your closing timeline is realistic when you lock.

Mistake 10: Not Comparing Multiple Lenders

Accepting the first quote you receive is leaving money on the table. Studies consistently show borrowers who get multiple competing quotes save significantly over the life of the loan. Shopping within a 45-day window counts as one credit inquiry. Use that window, compare at least two or three quotes with Loan Estimates.

Mistake 11: Not Reading the Loan Estimate and Closing Disclosure

These two documents tell you everything about your loan, rate, fees, monthly payment, what's in escrow, and what you owe at closing. Buyers who don't read them often show up at the closing table surprised by numbers that were disclosed weeks earlier. Read both documents line by line. Call your loan officer about anything you don't understand.

Mistake 12: Taking Advice from People Who Bought 15 Years Ago

The mortgage market in 2010 was completely different from today. Guidelines, programs, and rates have all changed substantially. Your brother-in-law who put 5% down in 2012 in a different state is not a reliable source for current program specifics. Get your information from someone who is active in this market every single day.

Bottom Line

Most mortgage disasters are entirely preventable. The buyers who get into trouble are almost always ones who made a financial move during the loan process without telling their loan officer first. The rule is simple: before you buy anything, move money, change jobs, or open new credit, call me. A two-minute conversation can save a transaction that took months to build.