Researching how to qualify for a mortgage before applying can save time and money in the long run. Lenders may require pre-approval or pre-qualification. Pre-qualification allows you to compare loan details without a credit assessment. Meanwhile, pre-approval means the lender evaluates your credit and finances which requires a hard credit inquiry.
Lenders will also need to know the total monthly debt for other loans such as car loans, credit card bills, and student loans. Typically, lenders limit the total debt to below 36% of your gross monthly income. Credit score also plays a major factor in qualifying for a mortgage.
Eligibility for a mortgage will require the person to put down a percentage upfront. The higher the amount, the more ownership you will have. This will also reduce the amount paid in financing for the duration of the loan.