15 Tips for Qualifying for a Mortgage

Read Time: 3min
Last Updated: 9/11/2021

Whether this is your first time buying a home or you are a real estate tycoon, these 15 tips will help you in the process of qualifying for a mortgage and ensure you meet the minimum mortgage requirements.


  1. Establish Your Monthly Payment Amount

A key to being a successful homeowner is having the peace of mind that you’ll be able to afford your new home. With our mortgage estimator, you can get an idea of what your mortgage will be.


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  1. Determine Your Home Loan Amount

Understanding how much you can afford is paramount to qualifying for a mortgage. Use our trusted home loan calculator to estimate what your monthly payments will be based on your loan amount. 


  1. Consider Your Credit Score

Your credit score is important when qualifying for a mortgage. Your credit score makes a big difference in determining how much you can afford, which is why it’s one of the first things a lender will check.


  1. Budget Your Down Payment

Having a clear understanding of your financial situation will help you determine what kind of down payment is right for you. A bigger down payment will decrease the total amount owed and monthly payment. A lower down payment will increase the total amount owed and monthly payment but will be less of an investment upfront. 


5. Gather Documentation

Having your documentation in order will help you meet minimum mortgage requirements and save you time and frustration when qualifying for a mortgage. Such documentation includes:

  • Pay stubs, W-2s, or other proof of income
  • Tax returns
  • Bank and mortgage statements
  • Photo ID and Social Security card
  • Monthly debt payments


  1. Know Mortgage Interest Rates

When getting approved, understanding how interest rates will affect your payment is important. Get current mortgage rates fast and know your rate today.

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  1. Verify Your Employment

Before you begin the process of buying a home, analyze your employment situation, collect documentation and be ready to show proof of steady, consistent employment to your lender. This will help you when qualifying for a mortgage.


  1. Consider Finance Options

With multiple finance options available, it’s important to know which is right for you. For example, with a fixed-rate mortgage, the interest rate is set and will not change. With an adjustable-rate mortgage, on the other hand, the interest rate may go up or down.


  1. Pay Down Debt

Debt-to-income ratio (DTI) is a term you will hear when qualifying for a mortgage. It’s a finance measure that compares one’s monthly debt payments to their monthly gross income. The less money you owe the easier it will be to get approved.


  1. Be Honest

It can be tempting to fudge a little when in pursuit of buying your dream home. However, being honest will ensure the home you purchase and its monthly payment will be within your comfort zone. 


  1. Save Your Money

Purchasing a home requires a substantial amount of money. To ensure the home of your dreams is within reach, have money saved specifically for this purchase.


  1. Know What Pre-Qualified Means

Prequalifying is the first step in qualifying for a loan. Getting pre-qualified will give you an idea of the loan amount you’ll likely qualify for.


  1. Know What Pre-Approved Means

Pre-approval is the second step. It is a conditional commitment to actually lend you the mortgage.


  1. Avoid This Common Mistake

Avoiding a down payment when purchasing your home can be tempting, but it can also leave you with a monthly payment that is simply too high to manage. Before acting on this type of payment option, consult with a trusted professional. 


  1. Shop Around for a Trusted Lender

When it comes to choosing a lender for your home purchasing endeavors, you have a lot of options. At Wyndham Capital, we’re passionate about providing you with quality education about how to qualify for a mortgage. We’d love to help you get started today

Maggie joined the Wyndham Capital Mortgage team in November 2020 as a Content Strategist. She has more than six years of content creation experience, which includes launching WBTV’s digital brand Queen City Weekend (now QC Life) and garnering more than 1.1 million page views across her articles. With a love of storytelling, she hopes to bring that passion to WCM and the many families it serves. She resides in Charlotte, North Carolina, and can often be found at a coffee shop, latte in hand.

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