This ratio compares your monthly debt payments to your gross monthly income. Lenders use it to assess your ability to manage monthly payments and determine how much you can afford to borrow.

Your credit score and history impact your ability to qualify for a mortgage and the interest rate you'll receive. Higher credit scores generally mean lower interest rates and better loan terms.

This includes the total income earned by all household members over a year. It typically includes wages, salaries, bonuses, investments, and other sources of income before taxes.

Include recurring debts like car payments, student loans, credit card minimum payments, and expenses like utilities, insurance, and any other monthly obligations.

This is the initial payment made when purchasing a home, typically a percentage of the purchase price. It affects your loan amount, monthly payments, and possibly your mortgage insurance requirements.

These are fees and expenses paid when finalizing a mortgage or real estate transaction. They can include loan origination fees, appraisal fees, title insurance, and other costs.

Lenders consider factors like credit score, income, employment history, debt-to-income ratio, and down payment size when determining your eligibility for a mortgage.

This is the interest rate charged on a mortgage loan. It directly affects your monthly mortgage payments and the total cost of the loan over time.

Specific loan programs vary by state but generally include conventional loans, FHA loans (Federal Housing Administration), VA loans (for veterans), USDA loans (for rural areas), and state-specific programs that offer down payment assistance or lower interest rates.