Lenders look at four things when you apply for a home loan. See how credit, income, savings, and loan type fit together.

1. Your credit

Your credit history shows a lender how you have handled debt in the past. A higher credit score can help you qualify for a lower interest rate, and over 30 years even a small difference in rate can add up to a large amount of money.

Before you apply, check your credit reports for mistakes. You can request your reports from the three national credit bureaus at AnnualCreditReport.com. If you find an error, dispute it early, because fixing a report can take time.

While you are buying, try to keep your credit steady. Avoid opening new credit cards, financing a car, or missing payments until after you close. Big changes can affect your loan approval, even late in the process.

2. Your income and your debts

Lenders want to know that you can handle the monthly payment. To measure that, they compare your monthly debt payments with your monthly income before taxes. This number is called your debt-to-income ratio, or DTI.

Your DTI includes payments such as car loans, credit cards, and student loans, plus the new house payment. Each loan program and each lender sets its own limits, so ask your lender what range they look for.

Lenders also want to see steady income. If you are self-employed, earn bonuses or overtime, or recently changed jobs, expect to provide more paperwork, such as tax returns. If you carry student loan debt, Julie's guide to buying a home with student loans explains how lenders often count those payments.

3. Your down payment and savings

Many buyers think they need 20 percent down, but that is not true for every loan. Some conventional loans allow as little as 3 percent down for qualified buyers, and some government-backed loans allow even less. With less than 20 percent down on a conventional loan, you will usually pay private mortgage insurance.

Remember that the down payment is not the only cash you need. Plan for closing costs, moving costs, and savings left over for emergencies. Some lenders also want to see a few months of payments in reserve.

4. The type of loan

Each loan type has different rules. Here is a simple overview:

USDA loans are worth asking about in Southeast Georgia, because many homes outside the larger towns sit in eligible rural areas. Your lender can check whether a specific address qualifies.

What about jumbo loans?

A jumbo loan is a mortgage larger than the conforming loan limit that the Federal Housing Finance Agency sets each year. Because the loan is larger, lenders usually ask for stronger credit, a bigger down payment, and more savings. For the 2026 limit and what lenders look for, read Jumbo Loan Requirements Explained.

Prequalified vs preapproved

A prequalification is usually a quick estimate based on what you tell the lender. Many lenders use a preapproval to mean they have checked your credit and reviewed papers like pay stubs and bank statements, which can carry more weight with sellers. Lenders use these terms in different ways, and neither letter is a promise of a loan, so ask what your letter means. The CFPB explains more about both letters. To learn how to compare offers from several lenders, read Get Preapproved and Compare Lenders Before You Shop. Julie's preferred vendors page lists local lenders, inspectors, and other pros.

Ready to see what fits your budget?

Once you have a preapproval, you can search with confidence. Browse homes for sale in 23 counties, or look at new construction across Southeast Georgia.

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Sources

• AnnualCreditReport.com
• What is a debt-to-income ratio? (CFPB)
• What is private mortgage insurance? (CFPB)
• Prequalification vs preapproval (CFPB)