How to Qualify for a Mortgage in 2024: Tips for Every Type of Buyer
Qualifying for a mortgage might seem intimidating, but with preparation, it’s absolutely achievable. Whether you're a first-time buyer or a seasoned homeowner, here’s what you need to know.
What Lenders Look For:
Credit Score – A score of 620 or higher is ideal, but programs like FHA loans can work with lower scores. Contact us for more info about this.
Debt-to-Income (DTI) Ratio – Your monthly debts should be less than 43% of your gross income.
Employment History – Stable employment over the last two years is preferred.
Steps to Improve Your Mortgage Readiness:
Review your credit report for errors and work to improve your score by paying off high-interest debts.
Save for a down payment and closing costs—aim for at least 3-5% of the home’s value.
Avoid taking on new debt before applying for a mortgage.
Tips for Self-Employed Buyers:
Provide at least two years of tax returns.
Keep detailed records of income and expenses.
Consider working with a mortgage broker who understands the nuances of self-employed borrowers.
Ready to take the first step? Use our pre-approval tool to see what you qualify for today, or schedule a free consultation with one of our mortgage experts!
