can i get home loan: what lenders look for

What determines approval

When you ask this, lenders weigh credit score, steady income, and how much debt you carry. A lower debt-to-income and savings for a down payment show you can handle costs. Compensating factors like extra reserves or a longer job history can help.

Quick self-check

1. Credit score near 620+ for conventional, or FHA if lower.
2. Target total DTI around 36%–43% including the new mortgage.
3. Have 3%–6% down plus closing costs and a small cushion.
4. Show two years of stable income via W-2s or consistent 1099s.

Real-world snapshot

Maya had a 680 score and modest student loans; she qualified with an FHA loan at 3.5% down after paying a card to reduce DTI. Drew, at 740, chose conventional, put 5% down, and gained lender credits by shopping.

Next steps

Pull your credit reports, fix errors, compare lenders, and request a prequalification. Gather pay stubs, tax returns, and bank statements so you can move quickly when the right home appears.