Date AuthorEric ZhouCategory Mortgage Sense Share:

4 Things to Consider Before You Qualify for a Home

How to prepare for the qualification process

So, you have a dream home in mind. Maybe it’s a cabin-style home or a modern mansion. But what does it actually take to be qualified for the mortgage that will make your homeownership dreams a reality?

The 4 C’s of Qualification lets you get inside the mind of mortgage lenders during the approval process. But remember, each applicant is handled on a case-by-case basis. So even if you come up a little short in one area, perhaps one of your stronger points will make up for the weaker one.

Credit History

Your credit history involves what you’ve borrowed in the past, and how well you’ve paid it back. Knowing your credit score before going into the mortgage process will make sure there are no surprises on your credit report.

Capacity to Repay

Ability to repay the mortgage is verified by your current employment and total income. Most mortgage lenders prefer employment at the same place for at least two years, or at least that you remain in the same line of work. Lenders also look at how the property will be used. Will you be living there, or just renting it out? Each of these details play a role in qualification.

Cash to Close

Cash to close refers to money for the down payment and closing costs. Make sure you’re aware of the additional payments that will be required, and ask your loan originator for more personalized information.


Collateral is just a fancy way of referring to the home you’re buying. Mortgages are not one-size-fits-all. Your qualification may change based on the home you’re pursuing. Use this affordability calculator to get an estimate on what price range you can afford.

The Qualification Process

To qualify, all these items are captured by your loan officer in a mortgage application, called a 1003. Then your credit report is pulled and the application is reviewed to determine what documentation is needed to proceed with your loan. And at the end of the process, you may just be on your way to homeownership!

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