Good Credit History

• Qualifying for a mortgage loan will take an acceptable credit history and credit score. Different lenders and loan programs have varying credit requirements. For example, mortgages insured by the Federal Housing Administration, or FHA, will approve applicants with scores as low as 620, whereas a conventional home loan lender may have a minimum credit score requirement of 680. Aiming high with regards to credit score is key to a low mortgage rate and lower home loan payments. This involves paying bills on time each month and disputing errors on credit reports.
  
  

Low Debt Ratio

• Applying for a mortgage loan when you're already making high debt payments each month can trigger a rejection. Even if you always pay your bills on time, carrying too much debt can ruin your chances of qualifying for a mortgage. Lenders review your debt-to-income ratio prior to approving a home loan application; if you're spending more than 36 percent of your income on debt payments (lenders factor future home loan payments into this equation), you may have to defer buying a home until you've eliminated some of your debts.
  
  

Ability to Repay

• One of the biggest factors affecting mortgage qualification is the ability to repay the mortgage loan. Thus, applicants applying for a home loan must have employment, and be employed for at least 24 consecutive months. Lenders don't just check to ensure that applicants maintain steady employment. They also check to see if applicants remained in the same field within this period, and whether their income increased or decreased during the two-year period. Continuous employment is a sign of stability.
  
  

Minimum Down Payment

• A cash savings helps you qualify for a mortgage loan because the majority of home loan lenders require a down payment on home purchases. Down payments are typically affordable, wherein mortgage lenders may only ask for 5 percent. Borrowers able to afford larger down payments can put 20 percent down on a new purchase, build instant equity and avoid paying private mortgage insurance, which is required when homes have less than 20 percent equity.