How Do You Qualify for a Mortgage?
Understand Credit, Income, and Other Requirements
To qualify for a mortgage, you must show that you can make your payments on time each month throughout the life of the loan.
At
eCash Mortgage, we evaluate your credit score, income, debts, and overall financial picture when deciding on your mortgage approval. What does it take to qualify? Here are some key steps:
1. Buy an Affordable Home
To qualify for a mortgage, the home you choose should have a monthly payment you can afford. Your monthly mortgage payment includes the principal, interest, property taxes, homeowners insurance, and, if required, mortgage insurance.
Use our
mortgage payment calculator to estimate how much you can afford and what your monthly payments might be.
2. Have a Qualifying, Minimum Credit Score
Different types of mortgages have different credit score requirements. At
eCash Mortgage, we typically approve Conventional loans with a minimum credit score of 620.
Keep in mind, having a credit score higher than the minimum can increase your chances of approval and may also help you secure better rates and terms.
3. Demonstrate Steady Employment and Income
Having a stable job and reliable income is crucial for qualifying for a mortgage. Lenders will want to confirm that your income is sufficient to cover your mortgage payments each month. If you’ve recently changed jobs, it might be more challenging to qualify.
If you're self-employed, you can still qualify for a mortgage. However, you may need to provide additional documentation to demonstrate that your income is steady and expected to continue. Learn more about getting a mortgage when you're self-employed.
4. Have an Acceptable Amount of Debt
Mortgage lenders, including
eCash Mortgage, want to ensure you can afford all of your monthly payments—not just your mortgage. This includes any student loans, car loans, or credit card debt.
We use your debts to calculate your debt-to-income ratio, which helps us determine whether you can comfortably manage your monthly payments and qualify for a mortgage.
5. Show Proof of Assets
Lenders typically want to see proof of your assets, such as bank accounts, retirement accounts, stocks, bonds, and personal property. These assets help us better understand your financial situation and ensure you have reserves to fall back on if your income changes.
6. Finance an Eligible Property Type
With a
Conventional loan through
eCash Mortgage, you can buy or refinance many types of properties, including primary residences, second homes, rental properties, and investment properties. FHA and VA loans are more specific, typically limiting you to buying or refinancing only your primary residence—the home where you live most of the time.
7. Make a Qualifying, Minimum Down Payment
When buying a home with a
Conventional or
FHA loan, you’ll need to make a minimum down payment. For Conventional loans, this is often 5% of the purchase price, while FHA loans typically require a minimum down payment of 3.5%.
8. Have the Cash You Need to Close
When you close on a home purchase or refinance, you’ll need to cover some of the closing costs in cash. We’ll let you know in advance how much you’ll need to bring to closing.