Steps to improve your mortgage approval odds

by bhs-ahEditor November 20, 2025

Getting a mortgage can feel stressful, but a few smart steps can raise your chances of approval. Lenders want to see that you manage money well, have steady income, and can afford the payment. With a little planning, you can put your best foot forward and make your application stronger.

Check and Improve Your Credit

Your credit score is a key factor. Pull your credit reports and fix any errors. Pay all bills on time and pay down balances on credit cards to lower your credit use. Try to keep your credit use under 30% of your limits. Avoid late payments for at least six months before you apply.

Lower Your Debt-to-Income Ratio

Lenders look at how much of your monthly income goes to debt. Pay off small loans or high-interest cards to reduce this ratio. If you can, avoid taking on new debts. Sometimes asking for a lower payment on existing loans (without extending terms too far) can also help.

Save a Bigger Down Payment and Cash Reserves

A larger down payment can lower your monthly payment and make you less risky in the lender’s eyes. Aim for at least 5% to 20% if possible. Also save two to six months of mortgage payments as “reserves.” Showing you have backup funds can ease lender concerns.

Keep Steady Income and Job History

Lenders like stability. Try to stay in the same job or field for two years or more. If you’re self-employed or a gig worker, prepare extra proof like two years of tax returns, year-to-date profit and loss, and bank statements. Avoid changing jobs right before you apply.

Get a Strong Preapproval and Organize Documents

A true preapproval (not just prequalification) reviews your credit, income, and assets. Gather pay stubs, W-2s or tax returns, bank statements, ID, and any letters explaining special issues. Clean, complete documents reduce questions and delays and show you’re a serious buyer.

Avoid New Credit and Big Purchases

Do not open new credit cards, finance a car, or make large buys before or during the mortgage process. These moves can raise your debt, lower your score, and force the lender to recheck your file. Keep your spending steady until after closing.

Compare Lenders and Loan Options

Rates, fees, and rules vary. Get quotes from at least three lenders, including a bank, credit union, and online lender. Ask about different loan types, points, and closing costs. Choose the offer with the best overall value, not just the lowest rate. With patience and planning, you can build a stronger profile and make approval more likely—while also setting yourself up for a mortgage you can comfortably afford.