Credit History

• Don't let past or present credit issues stop you from getting a mortgage loan. You can get approved with a past foreclosure and bankruptcy if adequate time has past (2 to 3 years) and if you've maintained a good credit record since the incident. However, if you've ignored your credit report and score throughout the years, and you've practiced poor credit habits, a mortgage may be out of reach. But there are ways to improve your score and qualify for a home loan. Start with timely payments each month, and use your extra income to pay down credit card balances and other loan balances. Raise your FICO credit score to at least 680 before applying for a mortgage loan.
  
  

Adequate Docs

• Lenders need to see documentations with regards to your income and assets. This helps determine if you can afford a home loan. Be prepared and pull out your banking statements and tax returns or W-2s for the previous two years. Ask your employer to write a letter verifying your income and years with the company. Having money to afford the mortgage isn't always enough. Lenders typically like to see two years of steady employment, says the Home Loan Learning Center.
  
  

Down Payments

• Down payment requirements may seem burdensome, but there are benefits to putting money down on your mortgage loan. A down payment gives you instant equity and can trigger a lower mortgage rate on the home loan; and if you put down more than 20 percent, lenders will waive private mortgage insurance or PMI, which can save money each month. Mortgage lenders normally ask for a minimum down payment of 5 percent.
  
  

Mortgage Pre-Approvals

• Apply for a mortgage loan before checking out houses. There's no way to know what a lender will approve you for, and looking at houses before acquiring a pre-approval can end in disappointment. A mortgage lender may reject your application or pre-approve you for an amount that's lower than what you expected.
  
  

Dealing with Closing Costs

• Saving for a down payment and closing costs can prove challenging. Every mortgage loan has closing fees that range between 3 and 5 percent of the loan balance. Don't put off buying a house because you can't afford this additional expense. Instead, negotiate with your lender to roll the costs into the mortgage loan. In some cases, sellers will pay a percentage of your closing costs.