36% is the comfortable target. Many programs still approve at 43%, and some automated approvals stretch to 50% with strong credit and reserves — but the higher you go, the thinner the file and the tighter the budget after closing.

A revolving balance hits twice: it raises DTI and lowers your score through utilization. Paying $300 off a card can free more borrowing power than $300 toward the down payment.

Job changes inside the same field are usually fine. Moving from W-2 to self-employment right before applying is not — that typically restarts a two-year clock.

A new payment can knock you out of qualifying ratios weeks after you were approved. Lenders re-pull credit before closing.

580 is the common FHA floor with 3.5% down, and 500–579 may work with 10% down. Pricing improves in tiers — 660, 700, 740 — so a small climb before applying can be worth real money.

Disputes take 30–45 days to resolve, and an unresolved dispute flag can stall underwriting on its own.

Balances report on the statement date, not the due date. Paying early is what moves the score.

Closing your oldest card shortens your history and raises utilization. In the six months before applying, boring is the strategy.

20% avoids mortgage insurance, but low-down-payment loans exist for a reason. Compare the cost of waiting to save against the cost of PMI you can later remove.

Lender fees, title, appraisal, recording, prepaid taxes and insurance, and escrow funding. On a $350,000 home that is roughly $7,000 to $17,500 on top of the down payment.

Some loan programs require reserves outright. Every program treats them as a compensating factor, and every household needs them the first year.

Anything unusual relative to your income gets a letter of explanation and a paper trail. Cash you cannot document usually cannot be used.

The letter must state the amount, the relationship, and that no repayment is expected. A gift that looks like a loan becomes a debt in the ratio.

Partial returns get sent back. Include K-1s and business returns if you own 25% or more of a company.

All pages, including the intentionally blank ones. Screenshots and partial PDFs are routinely rejected.

Income is generally averaged over two years of net (after write-offs) figures, which is why aggressive deductions can shrink the loan you qualify for.

A pre-qualification is an estimate off numbers you stated. A pre-approval means a lender pulled credit and reviewed documents. Sellers can tell the difference, and in a competitive market only one of them gets taken seriously.

Mortgage inquiries in a short window count as one event for scoring purposes. Compare written Loan Estimates side by side, not verbal rates.

No job changes, no new credit, no large unexplained deposits, no moving money between accounts without a paper trail.