The Schmidt Team Home Buying Guide

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Our story

The Schmidt Team is based in San Diego and has provided mortgage expertise to homebuyers and real estate agents for more than 27 years. Tracie Schmidt excels at giving homebuyers the knowledge and support they need to make confident home financing decisions. Today The Schmidt Team is proudly powered by Barrett Financial Group.

Tracie Schmidt, Mortgage Loan Officer, NMLS #269424 · Call or text 858-336-5200 · tschmidt@barrettfinancial.com

Mortgage loan programs

There are a variety of loans available with different down payment options. A licensed loan officer will review your situation — employment history, income, assets for down payment, other properties you own and what monthly payment feels comfortable — to find the program that fits.

Conventional loans

Loans not guaranteed by the VA or insured by FHA. Conforming loans meet Fannie Mae and Freddie Mac guidelines and loan limits; loans that don’t are non-conforming.

First-time homebuyers

Many programs are designed for first-time buyers, and some allow as little as 3% or 3.5% down. Down payment or closing cost assistance may be available if you meet program guidelines. Despite popular belief, 20% down is not required.

FHA loans

Created in 1934, FHA insures loans made by approved lenders — FHA is not the lender. Benefits include lower down payment options, flexible credit guidelines, and a past bankruptcy isn’t an automatic disqualification.

Jumbo loans

A jumbo loan is larger than the conforming loan limit set each year by FHFA. Limits are higher in high-cost areas like San Diego County — ask us for this year’s limit.

VA loans

Guaranteed by the U.S. Department of Veterans Affairs since 1944: $0 down for eligible borrowers, no monthly mortgage insurance, and limits on certain lender fees and closing costs.

The loan process

Loan application — online, by phone or in person.
Loan set-up — disclosures, appraisal and verifications.
Processing — your file is organized and prepared.
Underwriting — credit, income, assets and property are reviewed.
Closing — you sign, fund and get your keys.

We keep you informed during the process — and we’re still here after closing.

Preparing for your mortgage

Know your finances inside and out. The amount a lender will let you borrow isn’t necessarily what you’re comfortable paying. When choosing between fixed and adjustable rates, ask yourself how long you expect to stay in the home and how much financial risk you’re comfortable with. Like a job application, the mortgage process requires transparency — accurate details help you get matched with the right program.

Pre-qualification vs. fully underwritten conditional approval

Pre-qualification is the first step: you discuss your situation with a loan officer to get an overall picture of what you can afford.

Fully underwritten conditional approval goes further. You voluntarily provide documentation and the lender underwrites your loan as a “To Be Determined” property — credit, income and assets are already reviewed and conditionally approved against your chosen program.

Why get conditional approval?

Uncover credit issues early — know about problems before they cost you a house.
Know your price range — focus on homes you can truly afford.
Win bidding wars — sellers favor buyers who are already conditionally approved.
Close faster — most of your file is reviewed before you’re in contract.

Mortgage dos & don’ts

Do

Keep making your mortgage or rent payments
Stay current on all accounts
Keep living at your current residence
Be prepared to source all deposits
Ask your loan officer before any financial decision
Tell us if your pay or compensation changes

Don’t

Make major purchases (car, appliances, furniture)
Apply for or open new credit
Transfer balances between accounts
Change jobs without talking to us
Close credit card accounts
Change bank accounts
Let anyone run your credit before asking us

Mortgage speak

Annual Percentage Rate (APR) — the cost of your loan expressed as a yearly rate, including certain fees.
Debt-to-Income ratio (DTI) — your monthly debts plus proposed housing payment divided by gross monthly income.
Loan Estimate (LE) — a standard form showing your loan terms, estimated payment and closing costs.
Loan-to-Value (LTV) — your loan amount compared with the home’s value. A larger down payment means a lower LTV.
Mortgage insurance — protects the lender if a loan defaults; depends on down payment and program.
PITI — principal, interest, taxes and insurance: the parts of a typical monthly payment.
Closing Disclosure (CD) — your final loan terms and costs, delivered at least three business days before closing.

About Tracie

Tracie Schmidt has been featured in Forbes, USA Today, Digital Journal and Yahoo! Finance, and locally by San Diego Magazine, the San Diego Union-Tribune and ESPN radio. Recognition includes 2022 Five Star Mortgage Professional, Mortgage Professional America’s Elite Women 2021, Scotsman Guide Top Women Originator 2021 and Top 1% Mortgage Originators in America 2020. She is a longstanding member of the Women’s Council of Realtors and the Greater San Diego Association of Realtors, and supports local charities from school sports teams to food drives.

5-star reviews for Tracie

“Tracie goes above and beyond with everything she touches. From her excellent communication to her dedication to her clients' success, Tracie definitely sets the bar high for her competitors. I have peace of mind with full confidence when I refer anyone to her.”
— Ryan P., San Diego, CA

“Tracie and her team are amazing. She is quick, efficient, keeps you up-to-date and communication is great, even on a Sunday! I highly recommend Tracie and her team.”
— Denise L., San Diego, CA

“Tracie and Alina did an amazing job with my refinance. They kept me informed throughout the process and got it all done quick and easy! I highly recommend them to all my clients and friends.”
— Saxon B., San Diego, CA

“Tracie and her team are amazing! She helped us when we bought our house, and now she is helping us with a refinance. When our appraiser was being unprofessional, she helped us contact the VA to make our concerns known. If you want an amazing team and insurmountable customer service call the Schmidt Team!”
— Karen W., Seaside, CA

“I have a condo that I rent out. For the past 4 years, no one has been able to do a refinance for me since my HOA is suing a builder. Tracie and her team figured out a way to do the refinance. The savings is over $300 per month. Thank you for your great help!”
— David L., Solana Beach, CA