How To Qualify For a Mortgage

There are many things you should consider when buying a home. The first step is applying for a mortgage. How do you know if you’ll qualify?

In this article we’ll explain some of the main factors that lenders look at when they consider mortgage applications.

How To Qualify For A Mortgage: Main Factors

Your income, credit score, assets, property type and debt are major factors that lenders first consider when they decide whether if you qualify for a mortgage loan or not. Let’s begin by taking a look at them.


One of the first and most important things that lenders consider when they receive your loan application is your household income. There is no minimum dollar amount that you need to earn in order to apply for a loan. However, it is necessary for your lender to know that you have enough money coming in to cover your mortgage payment and other bills.

Moreover, you should remember that lenders don’t only consider your salary when they calculate your total income. They also take into account other reliable and regular income, such as:

  • Military benefits and allowances
  • Any extra income from a side hustle
  • Alimony or child support payments
  • Income from investment accounts
  • Commissions
  • Overtime
  • Social Security payments

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Credit Score

Your credit score is a three-digit numerical rating that expresses how reliable you are as a borrower. On the one hand, a high credit score usually means that you pay your bills on time, don’t take on too much debt and watch your spending.  On the other hand, a low credit score might mean that you frequently fall behind on payments or you are taking on more debt than you can afford. Borrowers who have high credit scores get offered a largest selection of loan types and the lowest interest rates.

For most types of loans, you’ll need to have a FICO credit score of at least 620 points to qualify. If your credit score I lower than 620, you should consider an FHA loan.

Property Type

The type of property you want to purchase is another important factor if you want to qualify for a mortgage loan. The easiest type of property to purchase is a primary residence.

Primary residences are less risky for lenders. They also allow them to extend loans to more people. For instance, what happens if you have an unexpected bill or lose a stream of income? In this case you’re more likely to prioritize payments on your home.

Let’s say you want to buy a secondary residence or an investment property. You’ll need to meet higher credit, down payment and debt requirements. This is due to the fact that these property types are riskier for lender financing.


Your lender needs to know that if you run into a financial emergency, you can keep making your mortgage payments. That’s where assets come in. Assets are things that have value and you own them. For example:

  • Checking and savings accounts
  • Stocks, bonds and mutual funds
  • Certificates of deposit (CDs)
  • 401(k)s, IRAs, or any other retirement account you have

Your lender may require documentation that verifies these types of assets.

Debt-To-Income Ratio

For mortgage lenders it’s crucial to know that you have enough money coming in to cover your mortgage payment and all of your other bills. Your DTI ratio is a percentage that shows lenders how much of your gross monthly income goes to required bills every month. That’s why is highly important for lenders this percentage.

Bottom Line

Are you ready for a mortgage? The first step is to get loan preapproval. A loan preapproval will tell you how much money you can get in a home loan and can help you begin shopping for your dream home.

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If you want to know more about this subject, do not hesitate to fill in the following application form. If you have questions about mortgages, you can also call us at +1 (800) 638-6035 or email us at info@mortgij.com. We’ll get back to you in 24 hours or less.

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