: While a 20% down payment is standard to avoid private mortgage insurance (PMI), many programs allow for as little as 3% to 5% . Prequalification vs. Preapproval

: Total your monthly debt payments and divide them by your gross monthly income. Lenders typically prefer a DTI ratio below 36% .

: Your credit score determines your mortgage eligibility and interest rate. Most lenders require a minimum score of 620 for conventional loans, though some government-backed programs accept scores as low as 580 .