Your credit score is the single biggest driver of your interest rate. Pull your free credit reports at annualcreditreport.com, verify there are no errors, and take steps to pay down high balances. The higher your score, the lower your rate—simple as that.
You’ll need recent pay stubs, last two years’ tax returns, bank statements, and investment account summaries. Having these ready up front cuts weeks off the approval process and shows lenders you’re organized.
Lenders look at how much of your monthly income goes toward debts. Aim for a DTI under 43%. If you’re over, prioritize paying down debts—especially high-interest credit cards—before you apply.
A larger down payment not only lowers your loan amount but can also help you avoid private mortgage insurance (PMI). I recommend shooting for at least 10–20% down if you can.
A pre-approval letter isn’t a guarantee, but it shows sellers you mean business. It locks in your rate quote (for 60–90 days) and gives you a clear budget so you can hunt for homes with confidence.