The Best Way to Get Approved for a Mortgage (Even With Average Credit)
Getting approved for a mortgage can feel like navigating a financial obstacle course. But with the right strategy, you can secure that home loan approval faster than you think. Here's your step-by-step guide to mortgage approval success.
1. Know Your Credit Score Inside Out
Your credit score is the golden ticket to mortgage approval. Lenders typically want to see:
- 740+ for the best interest rates
- 680-739 for decent approval chances
- 620-679 may qualify but with higher rates
Check your free credit report at AnnualCreditReport.com and dispute any errors immediately.
2. Save More Than the Minimum Down Payment
While some loans accept 3% down, saving 20%:
- Avoids Private Mortgage Insurance (PMI)
- Makes you more attractive to lenders
- Gives you instant equity in your home
Use our Mortgage Calculator to see how different down payments affect your monthly costs.
3. Get Pre-Approved (Not Just Pre-Qualified)
Pre-approval means a lender has:
- Verified your financial documents
- Committed to a specific loan amount
- Given you serious buying power with sellers
4. Keep Your Finances Stable During the Process
Avoid these 30 days before closing:
- Changing jobs
- Making large purchases
- Opening new credit accounts
5. Choose the Right Mortgage Type
| Loan Type | Best For | Down Payment |
| Conventional | Good credit buyers | 3-20% |
| FHA | First-time buyers | 3.5% |
| VA | Military families | 0% |
| USDA | Rural areas | 0% |
Our Mortgage Calculator compares different loan types side-by-side.
Pro Tip: Debt-to-Income Ratio Matters
Lenders prefer your total monthly debts (including new mortgage) to be under 43% of your gross income. Pay down credit cards and avoid new loans during the process.
Final Checklist Before Applying
- W-2s/pay stubs (last 2 years)
- Bank statements (2-3 months)
- Tax returns (last 2 years)
- List of all debts and payments
Ready to crunch the numbers? Calculate your ideal mortgage before talking to lenders!