Realty Star Network
Kelleigh Cleveland, Realty Star NetworkPhone: (601) 620-8686
Email: kelleigh@realtystarnetwork.com

Top requirements to be aware of for mortgage qualification

by Kelleigh Cleveland 04/15/2024

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

Kelleigh Cleveland

Hi, I'm Kelleigh Cleveland and I'd love to assist you. Whether you're in the research phase at the beginning of your real estate search or you know exactly what you're looking for, you'll benefit from having a real estate professional by your side. I'd be honored to put my real estate experience to work for you.