How to Get Qualified for a Home Loan | VanDyk Mortgage

by Tim Hart | Feb 15, 2022 9:43:25 AM

Qualify for Home Loan

Especially when it comes to first time buyers, most Americans don’t have the cash liquidity to purchase a home without applying and qualifying for a home loan. Lending institutions consider a wide range of factors before deciding whether you qualify for a refinance or home loans for first time buyers. You’ll want to be prepared so funding is not delayed, or in the worst-case scenario, denied.

When you apply for a home loan, your bank will assess your income, assets, debt-to-income ratio, credit score, and the type of property you plan to purchase. You will only qualify for a loan if you can meet all of their requirements. These requirements are fairly uniform with only slight deviations from one lender to the next.

In this guide, Florida mortgage lenders VanDyk Mortgage will explain everything you need to know about credit scores, debt-to-income ratios, and all of the factors that go into ensuring a smooth process in qualifying for a mortgage or refinance.


Although lenders don’t require you to earn a certain amount of money to qualify for a loan, they do assess your total household income. Your total income assures the lender that you have a steady stream of cash from which you can pay your bills. Your total household income includes:

  • Military benefits
  • Alimony and child support
  • Social Security payments
  • Commissions
  • Income from a second job
Lenders generally prefer your income to have been stable for at least the last 2 years. Gaps in employment may make lenders hesitant to approve your application.


Having assets assures your lender that you’ll still be able to pay your bills if you run into short-term financial trouble. They’ll assess all of the following:

  • Savings and checking accounts
  • Stocks, bonds, and other investments
  • Retirement funds, including 401(k)s, IRAs, and other accounts
  • Certificates of Deposit
The more assets you have, the more likely you are to qualify for a home loan.


Assets for home loan

Debt-to-Income Ratio

Lenders assess your debt-to-income ratio to determine how affected you’ll be by another loan. They must first guarantee that you can cover your existing bills before you take on more debt. The less debt you currently have, the better your debt-to-income ratio. Applicants with better ratios are more likely to be approved for a home loan.

Credit Score

Your credit score is an accurate marker for how likely you are to pay your mortgage on time. Credit scores are calculated based on how timely you pay your bills and the total amount of credit you’ve consumed. Maintaining a healthy credit score above 620 is the best way to qualify for a home loan.

Type of Property

It may seem common sense, but lenders don’t want to give money for a home you can’t afford. Although they make money through years of interest, if you’re never going to pay back the mortgage, it’s not worth it for the lender to approve your application. Be sensible and apply to buy a home within your price range.

Final Thoughts

If you’re concerned that you may not qualify for a home loan, you’re not out of luck. Speak with an accountant or a financial manager about how you can improve your odds of qualifying. They can help advise you on how to improve your credit score and secure funding.

Born and raised in Southwest Florida, I have been in the Mortgage business since 2001 I'm a grizzly, battle tested mortgage veteran. I am also the Host of Rates & Reels, which is the most popular fishing show in Southwest Florida, hosted by a guy named Tim. In my spare time I love spending time with my family, coaching baseball, and anything else my kids or wife want me to do. I would be happy to help you or someone you know with any of your Mortgage needs.

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