What You Should Know About Getting a Mortgage Today

In today’s ever-shifting real estate landscape, getting a mortgage isn’t quite what it was a few years ago. Whether you’re a first-time buyer or moving up to your next home, understanding how lending has evolved can help you feel more confident and prepared.

Here’s what you should know before applying for a mortgage right now:

1. Rates Are Still Moving

Mortgage rates have been fluctuating in response to economic factors like inflation and Federal Reserve policy. While they’ve come down from recent peaks, they’re still higher than what buyers saw during the ultra-low-rate era. This affects monthly payments and purchasing power, so it’s crucial to shop around and compare offers from multiple lenders.

2. Your Credit Score Matters More Than Ever

A strong credit score can help you secure a better rate and more favorable terms. Lenders today are scrutinizing credit histories closely, especially with tighter economic conditions. If your score is below optimal, consider taking steps to improve it before applying — even a small increase can save you thousands over the life of your loan.

3. Down Payment Options Are Expanding

You don’t necessarily need 20% down. Many lenders offer options for as low as 3–5% down, depending on the loan type. That said, putting more down can reduce your monthly payment and eliminate the need for private mortgage insurance (PMI). It’s all about finding the right balance for your financial situation.

4. Pre-Approval Is No Longer Optional

In a competitive market, being pre-approved is essential — not just pre-qualified. Sellers want to know a buyer can secure financing, and having a solid pre-approval letter gives you a serious edge.

5. Debt-to-Income Ratios Are Under the Microscope

Lenders are paying closer attention to your debt-to-income (DTI) ratio, which measures how much of your income goes toward debt payments. Keeping your DTI below 43% (ideally lower) will make you a more attractive borrower.

6. Documentation Requirements Are Tight

Expect to provide full documentation — pay stubs, tax returns, bank statements, and more. Lenders want to verify income, assets, and job stability, especially in today’s economic climate. Having your paperwork organized can speed up the process and help you avoid delays.

7. Local Expertise Still Matters

Beyond rates and numbers, working with a local lender or real estate advisor can make a big difference. They understand regional market nuances and can offer guidance that’s tailored to your area and your goals.

Getting a mortgage today requires more preparation than ever — but it’s far from impossible. Knowing what lenders are looking for and how to position yourself as a strong borrower will help you secure the financing you need, with terms that work for you.

If you’re thinking about buying or just want to understand your options, book a FREE consultation. I’m here to help.