What do I need to qualify for a loan?
If you’ve been thinking about buying a home, one of the first questions that comes up is, “What do I actually need to qualify for a mortgage?”
It’s not as complicated as most people think. Every loan program is a little different, but there are a few core things lenders look at to determine if you’re ready to buy.
1. Steady Income and Employment
Lenders want to see that you have a consistent source of income — typically two years of job history in the same line of work. If you’ve switched jobs but stayed in the same field, that’s fine. Self-employed? You’ll just need to show two years of tax returns or business income to prove stability.
2. Credit Score
Your credit score tells lenders how you manage debt. The higher your score, the better your loan options and interest rate. Most programs require:
FHA: 580 and up (with some flexibility)
Conventional: 620 and up
VA: No required credit score minimum
USDA: Often similar, with room for case-by-case exceptions
If your score needs work, don’t panic…we can build a plan to get it where it needs to be.
3. Down Payment and Funds to Close
Different loans have different requirements:
Conventional: As low as 3% down
FHA: 3.5% down
VA and USDA: 0% down
You’ll also need money for closing costs, typically 2–4% of the purchase price, though many buyers use seller credits or lender incentives to help cover these.
4. Manageable Debt
Your monthly debts (like car loans, student loans, and credit cards) play a big part in qualifying. Lenders compare your total debts to your income — that’s your debt-to-income ratio (DTI). The lower it is, the better.
5. Documentation
Be ready to provide things like:
W-2s or tax returns
Pay stubs
Bank statements
ID and social security card
Basically, anything that helps paint a full picture of your financial health.
Let’s Build Your Game Plan
Getting pre-approved doesn’t have to be stressful — it’s simply about knowing where you stand and what needs to happen next. My team and I walk buyers through every step so there are no surprises, just solutions.
If you’re ready to see where you stand (or what’s holding you back), reach out today. We’ll build your roadmap to homeownership — together.
Paige Bowman | The Mortgage Collective
Houston’s trusted mortgage expert for over a decade.
