Credit scores, debt-to-income ratios, down payment requirements and the documents lenders ask for at application.
Last updated: October 2026 · Editorial standards “Bad credit” in mortgage terms doesn’t mean the same thing as “bad credit” in everyday language. Most lenders define bad credit as a score below 620. But programs exist for scores as low as 500 — and buyers with low scores are approved for mortgages every day. The…
There’s no single income requirement for a $400,000 home. The number varies based on your down payment, existing debts, credit score, property taxes in your area, and the interest rate you qualify for. What doesn’t change is the math — and working through it with real numbers is more useful than any rule of thumb….
Student loans don’t disqualify you from getting a mortgage. Millions of buyers carry student debt and get approved every year. But student loans do affect how lenders calculate your debt-to-income ratio — and the rules vary so dramatically between loan types that the same borrower can qualify for dramatically different loan amounts depending on which…
The «put 20% down» rule is repeated so often it sounds like law. It isn’t. For many buyers — especially first-time buyers — putting 20% down is neither necessary nor optimal. The right down payment depends on your cash reserves, the local market, your opportunity cost, and how long you’ll stay in the home. Here’s…
A 40-point improvement in your credit score before applying for a mortgage isn’t a minor administrative detail — it can be worth $50,000–$100,000 over the life of the loan. Most buyers underestimate how much a targeted credit improvement strategy can move their score in 60–180 days. Here’s what actually works. Understand What’s Driving Your Score…
Your debt-to-income ratio — DTI — is the number lenders care about almost as much as your credit score. It answers a simple question: of every dollar you earn, how much is already committed to debt payments? The answer determines how much mortgage you can take on. What DTI Is and How It’s Calculated DTI…
Your credit score is the single most influential number in the mortgage process. It determines whether you qualify, which loan products are available to you, and what interest rate you’ll pay. A 40-point difference in credit score can mean thousands of dollars per year in interest costs — or the difference between approval and denial….
There are two different answers to «how much house can I afford.» The first is what a lender will approve you for. The second is what you can actually afford without sacrificing your financial health. Those numbers are often different — and the gap between them is where buyers get into trouble. This guide focuses…