You’ve purchased a house before, so you know a bit about the process, but now that home is no longer a good fit and it is time to start the process over again. Maybe you would like to be in a different area with better schools or a quicker commute, or perhaps your circumstances make it necessary to look for more or less space?

Whatever the reason, you’re now looking into purchasing your next home so you have a better fit for your lifestyle. We can help you learn about the process so you can make an informed financial decision.

How Much Can You Borrow?

The first step is to determine how much you can borrow for your new home. Unlike when you purchased your first house, you now have equity in a home that factors into the equation. Your income and debts may have also changed since you bought your first property. Before you start shopping for your next home, talk to a Plaza Loans mortgage lender to figure out how much home you can actually buy.

Preliminary Steps

First, we’ll start by providing you a free financial analysis.. You simply will need to provide some basic financial information, and then we’ll calculate an estimated range of what you’ll be able to borrow and afford.

The next step is a preapproval letter. This tells your realtor and the seller of any home you’re considering that you are not only serious about purchasing, but, you also have the financial resources to carry through on your offer. The information in the letter doesn’t commit you to anything, but it does show that your credit history and financial status put you in a good position to buy a home.

After Your Initial Application Is Complete

You’ve received the preliminary qualifications that you need; now, it’s time to receive more concrete information on the amount of mortgage you can officially afford.

To do this, we look at the following three components:

  1. Income sources. Do you have a reliable, continuing source of income to make monthly payments? You can use other sources of income aside from a paycheck, such as retirement or veteran’s benefits, disability payments, alimony, child support, and rental or investment income. We will just have to help you get these alternate income sources verified as stable, reliable, and likely to continue for at least two years.
  2. Current debts and credit history. Do you pay your bills, loans, credit cards, and other debts on time? We look at your credit score and your borrowing history to determine if you’re a good credit risk. Before your reach this step, we recommend that your credit report is examined, either by you or by us, to make sure that there are no inaccuracies or problems that you can clear up to make you a better candidate for a home loan.
  3. Assets and available funds. Do you have enough funds for a down payment and closing costs? You can use money that you have in savings or a certificate of deposit (CD), or you can take it from investments or a retirement fund. We recommend checking with your financial advisor first to make sure that you won’t incur tax penalties by withdrawing before you reach a certain age). Gift funds are also allowed and we can provide assistance on how to structure this source to help you with your down payment.
    As you know, it can be time consuming and tedious to apply for a mortgage, but we’ll take the time to walk you through the process and make buying your next home a simple, stress-free experience. 


With your approved mortgage amount in hand, you’ll be one step closer to owning a home that’s right for your changing lifestyle.
Here’s what comes next:

  • You’ll learn about your loan options. We can help you find a mortgage that meets your needs from our wide array of mortgage products.
  • We’ll help you secure your mortgage with a final application for the exact product that fits your needs. Online, over the phone, or in person, we’ll work to secure your home financing in a way that’s convenient for you and your busy life.

Do you have more questions about the process of getting prequalified, applying for a mortgage amount, and then selecting a mortgage that best suits your needs? Contact us today for help or to click the button below to start an application now.


1155 Meridian Avenue
Suite 100
San Jose, CA 95125
NMLS Branch ID 216565



Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act NMLS#216565
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