: Lenders often want to see that you have several months of living expenses saved beyond your down payment to handle unexpected repairs or job loss. 2. Loan Qualification Requirements
: This is the portion of the purchase price you pay upfront. While 20% is often cited to avoid private mortgage insurance (PMI), many buyers put down as little as 3% to 3.5% .
You need enough cash on hand to cover immediate costs and reserves to satisfy lenders.
: Your total monthly debt payments (including the new mortgage) should generally not exceed 36–43% of your gross monthly income.
: A score above 620–640 is typically required for most loans, though higher scores (740+) earn the best interest rates.
: A deposit (typically 1–3% of the price) paid when you make an offer to show you are a serious buyer.
: At least 30 days of pay stubs and W-2 forms from the last two years.
: Most lenders require at least two years of steady income and employment. 3. Essential Documentation