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What Do I Need to Qualify for a Mortgage?

August 15th, 2022 | 3 min. read

What Do I Need to Qualify for a Mortgage?

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Whether you're a prospective home buyer or just curious, you've probably wondered what it takes to qualify for a mortgage. When getting a loan, credit score, your debt-to-income ratio, and down payment amount play a factor in getting approved with a good interest rate and monthly payment.

holding up home figureAnd depending on the lender and the type of mortgage you're interested in getting, some may require you to pay for mortgage insurance.

Does that mean more money you'll need to have to qualify for the loan? What if you don't have the extra cash? Does that jeopardize you from qualifying? 

Don't worry - in this post, we'll break down the basics of qualifications for each loan and give you an idea of what to expect. Keep in mind that qualifications can vary depending on the lender, so when you're ready to move forward with a mortgage, it's always best to talk to your lender to get specific information about their lending requirements.

 

here's a quick look at what we'll go over

 

Home-Loan-Icon_Greenwhat do i need to qualify for a mortgage?

Here's what you need to have when getting a mortgage.  

  • A qualifying debt-to-income (DTI) ratio
  • A fair to good credit score
  • Proof of income
  • A down payment 

debt-to-income (dti) ratio

credit score

proof of income

down payment

 

Download-Switch-Kit-Icon_Greenother mortgage qualification factors include: 

private mortgage insurance (pmi)

closing costs

 

Credit-Monitoring-Icon_Greenwhat qualifications are needed for each mortgage? 

Since there are a number of mortgages available, here's a quick look at the qualifications needed so you know what to do and what lenders will review when they receive your mortgage application. 

Min. Credit Score
Min. Down Payment
Max DTI
Property Type
Conventional Mortgage
620
3%
45%
Primary, Secondary Investment Properties
Jumbo Loan
700
10%
50%
Primary, Secondary Investment Properties
USDA Loan
640
No
41%
Primary
VA Loan
No
$0
No
Primary
FHA Loan
500
3.5%
43%
Primary

*Credit scores may vary based on lender. Examples are for demonstrative purposes only.

  

Now that you have a quick look, here are some specifics to help you choose which mortgage you want be interested in getting.  

conventional mortgage

jumbo loan

federal housing administration (fha)

usda loan

va loan

 

are you ready to get a mortgage? 

Now that you know what you need to get a mortgage, do you know which mortgage option would be better for you? If you're still pondering "hmm... which mortgage option would work best for me?" I have just the article that can help:

Find Which Mortgage Option Is Right for You

 

As always, if you have any questions, our Mortgage Loan Officers are here for you. You can send an email, give us a call at 704.375.0183 x 1525, or visit any of our branches.

Yanna

Yanna

As the Content Specialist and author of the Learning & Guidance Center, Yanna enjoys motivating others by uncovering all that's possible in the world of finance. From financial tips and tricks to ultimate guides and comparison charts, she is obsessed with finding ways to help readers excel in their journey towards financial freedom.

learning & guidance

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