What lenders look for
- Steady income — about 2 years of consistent work or income history.
- Credit score over 660, with at least 3 tradelines (utilities or credit lines in good standing) and two years of history.
- Debt-to-income (DTI) under 40% — your monthly debt payments divided by gross monthly income.
- Money saved for a down payment — savings or 401(k) funds both count.
The biggest mistake to avoid
Don’t take on new debt. Borrowing for a new car can sink your mortgage chances by pushing your DTI too high. Between now and closing, avoid large purchases, don’t change jobs, and don’t change your household size if you can help it — lenders re-check right before closing.
Talk to more than one lender
Not every lender uses the same guidelines. Some accept less than two years of income, some have low or no-PMI 3% down products, and some are better for self-employed buyers. Call 2–3 — a pre-qualification is a soft credit pull (no score hit) and takes about an hour. See the lender directory →
Free help
A hoMEworks homebuyer-education class walks you through all of this and is required for MaineHousing loans. It’s free, good for two years, and the single best first step if you’re new to buying.