1. QUALIFY FOR A LOAN
Qualify for a Loan: Your First Step to Homeownership
Buying a home starts with understanding how much you can afford. Unless you’re paying in cash, you’ll need a mortgage—and qualifying for one is the first step in your home-buying journey. Knowing your budget will help you shop confidently and avoid surprises along the way.
Use the mortgage calculators on this page to estimate your monthly payments, purchasing power, and loan options. Once you have a rough idea of your budget, you can move forward with the pre-approval process.
Shopping for a Mortgage FAQs
(Federal Trade Commission)
A mortgage is a loan that helps you buy a home. It's actually a contract between you (the borrower) and a lender (like a bank, mortgage company, or credit union) to lend you money to buy a home. You repay the money based on the agreement you sign. But if you default (that is, if you don't pay off the loan or, in some situations, if you don't make your payments on time), the lender may have the right to take the property.
Not all mortgage loans are the same. This article from the CFPB explains the pros and cons of different types of mortgage loans.
- Figure out the down payment you can afford. The amount of your down payment can determine the details of the loan you qualify for. The CFPB has tips about how to figure out a down payment that works for you.
- Get your free annual credit reports. Go to AnnualCreditReport.com. Review your reports and fix any errors on them. This video tells you how. If you find errors, dispute them with the credit bureau involved. And tell the lender about the dispute, if it's not resolved before you apply for a mortgage.
- Get quotes from several lenders or brokers and compare their rates and fees. Find out all of the costs of the loan. Knowing just the amount of the monthly payment or the interest rate isn't enough. Even more important is knowing the APR — the total cost you pay for credit, as a yearly rate. The interest rate is a very big factor in calculating the APR, but the APR also includes costs like points and other credit costs like mortgage insurance. Knowing the APR makes it easier to compare "apples to apples" when you're choosing a mortgage offer. Use the FTC's Mortgage Shopping Worksheet to keep track of and compare the costs for each loan quote.
A mortgage broker is someone who can help you find a deal with a lender and work out the details of the loan. It might not always be clear if you're dealing with a lender or a broker, so if you're not sure, ask. Consider contacting more than one broker before deciding who to work with — or whether to work with a broker at all. Check with the National Multistate Licensing System to see if there have been any disciplinary actions against a broker you're thinking about working with.
A broker can have access to several lenders, so they might be able to give you a wider selection of loan products and terms. Brokers also can save you time by managing the loan approval process. But don't assume they're getting you the best deal. Compare the terms and conditions of loan offers yourself.
You often pay brokers in addition to the lender's fees. Brokers are often paid in "points" that you'll pay either at closing, as an add-on to your interest rate, or both. When researching brokers, ask each one how they're paid so you can compare offers and negotiate with them.
Yes. Ask lenders or brokers if they can give you better terms than the original ones they quoted, or whether they can beat another lender's offer. For example, you might:
- Ask the lender or broker to waive or lower one or more of its fees, or agree to a lower rate or fewer points
- Make sure that the lender or broker isn't agreeing to lower one fee while raising another — or to lower the rate while adding points
How to Qualify for a Mortgage
Follow these steps to get pre-approved for a loan:
1. Determine Your Down Payment
- A higher down payment can reduce your loan amount and eliminate the need for private mortgage insurance (PMI).
- Conventional loans typically require 5-20% down, while FHA, VA, and USDA loans offer low or no down payment options.
2. Check Your Credit Score
- Your credit score affects interest rates and loan approvals.
- Get a free credit report at AnnualCreditReport.com, review it for errors, and dispute any inaccuracies before applying.
3. Compare Lenders and Loan Options
- Get quotes from multiple lenders and compare their interest rates, fees, and loan terms.
- Focus on the Annual Percentage Rate (APR), which includes the interest rate plus additional costs like points and fees.
- Use the FTC’s Mortgage Shopping Worksheet to track lender offers.
4. Get Pre-Approved
- A pre-approval letter shows sellers you’re a serious buyer.
- It gives you a clear price range and helps streamline the home-buying process.
- Lenders will assess your income, employment history, credit score, and debt-to-income ratio.
Types of Home Loans
Each loan type has different requirements and benefits:
✅ Conventional Loans – Best for borrowers with good credit and stable income.
✅ FHA Loans – Lower credit score and down payment requirements.
✅ VA Loans – No down payment required for eligible military veterans.
✅ USDA Loans – Zero down payment for homes in rural areas.
Choosing the right loan depends on your financial situation, eligibility, and long-term goals.
What to Watch Out For
⚠ Hidden Fees & Closing Costs – Ask lenders for a breakdown of origination fees, appraisal costs, and title insurance.
⚠ Adjustable-Rate Mortgages (ARMs) – Low initial rates can increase over time.
⚠ Private Mortgage Insurance (PMI) – Required for conventional loans with less than 20% down.
Get Started Today
🔹 Use our mortgage calculators to estimate your loan amount and monthly payments.
🔹 Check your credit and gather documents like pay stubs, tax returns, and bank statements.
🔹 Shop for lenders and get pre-approved to start house hunting with confidence.
A solid pre-approval sets the foundation for a smooth home-buying experience. Take control of your financing today and make your dream home a reality!
Need Help Finding a Lender?
We can connect you with trusted mortgage professionals.
Trusted Lenders with Experience & Expertise!
Below are a few lenders with years of experience, proven competency, and a commitment to assisting you throughout the home-buying process.
Please note: While we recommend these lenders, you are not required to use them to qualify for our $10K Satisfaction Guarantee.
Jheri TengeWith over 25 years in the mortgage industry, Jheri has built a reputation for knowledge, professionalism, and exceptional client care. She understands that securing a home loan is more than just numbers—it’s about helping clients achieve their financial and homeownership goals with confidence.
Known for her thorough approach and strong communication skills, she takes the time to educate clients on all available loan options, ensuring they make the best decision for their unique situation. Her commitment to superior service means she’s always available to answer questions, guide clients through the process, and make even the most complex transactions feel seamless.
Whether you’re buying your first home, refinancing, or investing, Jheri is dedicated to making your mortgage experience smooth, stress-free, and successful.
Ken Seaver – Trusted Loan Officer with 20+ Years of Experience
With over two decades in the mortgage industry, Ken Seaver is a seasoned loan officer known for his integrity, dedication, and unwavering commitment to his clients. Ken understands that buying a home or refinancing a mortgage is one of life’s biggest financial decisions, which is why he prioritizes clear communication, reliable guidance, and a seamless loan process.
Ken’s efficient systems for loan processing, follow-ups, and client support ensure a smooth experience from application to closing. He is always available—even on weekends—to answer questions, address concerns, and provide expert advice. Whether you’re a first-time homebuyer, an investor, or looking to refinance, Ken’s experience and personalized approach will help you navigate the loan process with confidence.
For a loan officer who truly puts clients first, Ken Seaver is the trusted professional you want by your side.
