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Mortgage 101
Getting a home loan doesn’t have to be intimidating – especially when you understand the basics like options, features and costs of a home loan. Of course, our associates at JBee Home Loans are available anytime to answer your questions and make the process a lot easier.

Learn The Mortgage Basics

How do you Qualify for a Mortgage?

Usually the basics to qualify include a credit score over 580, enough savings to cover closing costs, being employed for two years or more, and having a low DTI (debt to income ratio). However, depending on your circumstances, you may qualify for a mortgage, even if you're missing one of those items. It's best to reach out to a licensed mortgage broker so they can help you get qualified.

What's the Difference Between Pre-Qualified and Pre-Approved?

A quick conversation with your lender about your income, assets and down payment is all it takes to get prequalified. But if you want to get preapproved, your lender will need to verify your financial information and submit your loan for preliminary underwriting. A preapproval takes a little more time and documentation, but it also carries a lot more weight.

Can you Get a Mortgage without a Credit Score?

Yes! You can still get a mortgage.

If you apply for a mortgage without a credit score, you’ll need to go through a process called manual underwriting. Manual underwriting simply means you’ll be asked to provide additional paperwork for the underwriter to review personally. Your loan process may take a little longer, but buying a home without the strain of extra debt is worth it!

Debt to Income Ratio Calculator

Find out your Debt-to-Income Ratio (DTI)

This debt to income ratio calculator (or DTI calculator for short) is a handy tool for every person who plans on taking any kind of loan, including a mortgage. It will tell you how profoundly indebted you are and whether you can afford yet another loan without disastrous consequences.

As a general guideline, 43% is the highest DTI ratio a borrower can have and still get qualified for a mortgage. Ideally, lenders prefer a debt-to-income ratio lower than 36%, with no more than 28% of that debt going towards servicing a mortgage or rent payment. The maximum DTI ratio varies from lender to lender.

Take our Quick Pre-Qualifying Mortgage Quiz

Purchasing a home is a very exciting time, and being well prepared will help you make better decisions. Take this opportunity to do our quick 1 minute quiz to find out if you’re pre-qualified for a home loan.

Mortgage 101 Blog

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