The Exclusive Utah Home Buyer

Mortgage Approval System

The easy, wish you had done it sooner, mortgage approval system at your fingertips

Watch this 10-minute video to uncover the exact step-by-step process of getting mortgage approval

Do I need an 800 credit score to get approved?

No. You do not need an 800 credit score to get mortgage financing. We work with all types of credit profiles, and work to find the best financing options for you.

Do I need 20% saved for a down payment to buy a home?

No, you do not need 20% down to purchase a home. We have options that offer little to no money down, as well as options from 1%, 3% 3.5% and 5% plus down options.

I am self-employed but don't show enough profit on my taxes. Can I still get approved?

If you are self-employed and do not show enough income on your tax returns, we do have business bank statement loans that allow us to bypass your tax returns. We utilize 12 or 24-month bank statements and can determine a monthly qualifying income number from there. These options will require 10% down, but are fantastic for people like you.

What down payment assistance options do you have?

At Guild Mortgage, we have multiple down payment assistance programs to help you buy. Options ranging from Utah Housing to our very own in-house Zero-down forgivable 2nd loan program, where after 36 on-time payments, the full down payment is forgiven. I am one of the TOP Utah Housing Lenders in Washington county.

I am looking for new construction home options. What incentives do you have?

I am the preferred lender with multiple local homebuyers in Southern Utah. Salisbury homes will give you $7,000 to $12,000 when you choose to work with me. We can use these credits to buy down your interest rate or cover all of your closing costs. We can also utilize state grants like the $20,000 SB240.

Does it cost money to do a mortgage application with you?

No. Scheduling a time with me does not cost you any money. Once we speak, we will go through the approval system. We will build a tailored loan program to your goals, wants, and needs.

Mortgage Approval System: The 4 Key Factors to Get Qualified for a Home

 

1. Understand the overall home-buying approval process 0:18

Alex introduces himself as a Mortgage and Loan Officer in Southern Utah.

He explains that this walkthrough condenses the full home-buying process from start to finish.

The goal is to show what happens:

from where you are now

to getting approved and qualified

to analyzing mortgage payments

to eventually getting the keys to your home

He frames the process around four key buckets that determine mortgage approval.

 

2. Review your credit scores first 1:02

Credit is important, but it is not the most important factor in the approval process.

Alex says a strong target for most buyers is a 660+ credit score.

Why 660 matters:

loan options can change significantly at 660 vs. 659

his goal is to get you the best available financing options

He looks at credit details such as:

on-time payment history

revolving credit lines

opportunities to consolidate debt

ways to improve cash flow

If your score is below 660, that does not automatically stop the process.

He still works with clients in the 575–640 range depending on the rest of the file.

 

3. Evaluate down payment options 2:51

Down payment is the least important of the four factors because there are many loan options.

Available down payment structures can range from:

0% down

3% down

5% down

10% down

20%+ down

The goal is to find the best balance between:

how much money you have available

what assets you want to use for the purchase

what monthly payment you are comfortable with

If you do not have money saved, that may still be okay.

Alex says many buyers should not wait just to save a down payment if credit, income, and debt are otherwise workable.

 

4. Calculate your debt-to-income ratio (DTI) 4:38

This is the most important approval factor.

DTI is an affordability test that compares:

your monthly debt payments

plus your new mortgage payment

against your monthly income

Alex explains that lenders look at debts reported on your credit report, such as:

auto loans

credit cards

student loans

house payments

Example formula:

$500 in existing debt

$2,500 mortgage payment

total = $3,000

divide by monthly income to get the DTI percentage

The target is to stay under roughly 50%–56% DTI.

 

5. Confirm which income can be used 6:53

Income and work history are used to determine what amount can be counted for the loan.

Alex says many income types can qualify, including:

hourly wages

salary

commission

self-employment

fixed income sources like Social Security, VA benefits, and pensions

The lender will determine what income is usable based on your situation and documentation.

The key question is: Can your income support the mortgage payment plus existing debt?

 

6. Use the math to see whether you qualify 7:43

Alex walks through a sample calculation:

$25/hour × 40 hours/week × 52 weeks = $52,000/year

$52,000/year ÷ 12 = about $4,300/month

$3,000 total debt ÷ $4,300 income = about 69% DTI

That example is too high to qualify.

To lower DTI, you must do one or more of the following:

lower debts

lower the mortgage payment

increase income

He then gives a second example:

two borrowers each making $52,000/year

combined monthly income = $8,600

$3,000 ÷ $8,600 = about 34% DTI

That scenario would qualify much more easily.

 

7. Move from qualification to home shopping 9:07

Once the numbers are reviewed, Alex can determine whether:

You are approved and ready to shop for homes, or

You need to work on one or more areas first

He emphasizes that the approval review is quick and free.

Ready to start your application? Click here to access my secure portal