What Lenders Look At When You Apply
Qualifying for a home loan comes down to a handful of core factors lenders evaluate together, not just your credit score in isolation. Lenders want to see stable income, a manageable debt load relative to that income, and enough savings for a down payment and closing costs. Even a strong credit score won’t offset a debt-to-income ratio that’s too high, which is why it’s worth checking your full financial picture before applying rather than focusing on one number.
The main qualification factors typically include:
- Credit score — most conventional loans require a minimum in the 620s, though requirements vary by loan type
- Debt-to-income ratio — most lenders prefer this under 43%, including the new mortgage payment
- Employment and income history — usually verified over the past two years
- Down payment and reserves — cash available for the down payment plus a financial cushion
Our home loan eligibility calculator factors in these elements to give you a realistic estimate before you apply. If your debt load is a concern, our article on debt-to-income ratio and why it matters for home buying explains how to improve it before applying.