Ignite FB Tracking PixelA beginners guide to qualify for mortgage approval - Marina Prieto
Always Here Properties, LLC
Marina Prieto, Always Here Properties, LLCPhone: (254) 289-0672
Email: [email protected]

A beginners guide to qualify for mortgage approval

by Marina Prieto 07/29/2023

Things to know before you start the journey of mortgage qualification  featured image

As you prepare for homeownership, it is beneficial to become familiar with requirements necessary to qualify for a mortgage. 

Mortgage payments are paid over an extended period and give potential homeowners the ability to find and pay for the home of their dreams. Knowing how to qualify for a mortgage allows you to line everything up to get the funds needed for your desired home.  

Mortgage income requirements

Even though potential homeowners of all income levels can apply for a mortgage, a few key financial factors can make or break your mortgage loan qualification. 

Having a well balanced debt to income ratio demonstrates you have enough funds after paying off monthly debts such as credit card payments, to comfortably afford a mortgage. A ratio of 36 percent or lower is considered most ideal to lenders. 

Next, your gross monthly income should be steady and expected to be received for at least the next 3 or more years to demonstrate financial stability. This too demonstrates to lenders you can afford a monthly mortgage payment. 

Collateral & mortgage loan eligibility

Sometimes, to qualify for mortgage approval, lenders require the loan borrower to put down collateral that can be seized if the loan is not paid back in terms of the mortgage contract. For mortgage loans, the collateral would be the home itself. 

As you prepare to apply for a loan, it’s essential to manage your debt which boosts your credit history in the eyes of lenders. Your new home is a large asset, so before applying for a mortgage, consider speaking with a lender near you to answer any questions you may have.



About the Author
Author

Marina Prieto

I take a personal approach to helping you sell your home and getting your home ready for the sale market, showing you the comps for homes that compare to yours, doing a net sheet so you can see what your proceeds will be at closing, showing you how the appraiser appraises your home for the new buyer, answering all your concerns on what needs to be done for marketing your home.