Qualifying for a mortgage involves meeting specific criteria that lenders use to determine your ability to repay a home loan. Here’s a clear breakdown of how to qualify:

✅ 1. Stable Income and Employment

Proof of income (pay stubs, W-2s, tax returns for 2 years)

Stable job history (usually 2+ years in the same industry)

Self-employed borrowers need 2 years of tax returns or possibly a profit & loss statement. We have alternative loans

✅ 2. Good Credit Score

Conventional loans: Usually need 620+

FHA loans: Minimum 580 (can go lower than 580 with a 10% down payment)

VA/USDA loans: Flexible, but typically 600–640+

✅ 3. Manageable Debt-to-Income (DTI) Ratio

DTI = Monthly debt payments ÷ Gross monthly income

Aim for a DTI below 47% (some programs allow higher)

✅ 4. Down Payment

Conventional: 3–20% of the home price (3% for first time buyers and 5% for repeated buyers)

FHA: As low as 3.5%

VA/USDA: 0% down (for eligible borrowers)

You may qualify for down payment assistance programs

✅ 5. Sufficient Assets & Savings

Need funds for:

Down payment

Closing costs (usually 2–5% of home price)

Reserves: Extra funds after closing (1–2 months of mortgage payments)

✅ 6. Documentation

Be ready to provide:

Photo ID

Social Security number

Proof of income

Bank statements

Tax returns

Credit history

✅ 7. Pre-Approval

Get pre-approved to find out how much home you can afford

Helps strengthen offers when you start house hunting