To verify housing purchase eligibility, buyers must first obtain a credit report and score, typically required to be at least 620 for conventional loans. Lenders then assess pre-approval based on income, employment stability, debt-to-income ratio (DTI), and down payment size. Government-backed programs like FHA (3.5% down payment) or VA loans (no down payment) have separate eligibility criteria. Buyers should also confirm property appraisals align with purchase offers and review mortgage terms for interest rates and loan durations.

The verification process ensures lenders and sellers can trust a buyer’s financial readiness, reducing default risks. For example, Fannie Mae requires a DTI below 43% for conforming loans, while FHA allows up to 43% with compensating factors like higher credit scores. According to the U.S. Department of Housing and Urban Development (HUD), 64% of FHA borrowers in 2022 used the program due to lower down payments, illustrating its role in expanding homeownership access. Pre-approval also streamlines offers, with 89% of sellers preferring buyers with pre-approved financing, per the National Association of Realtors (NAR). Data from the Federal Reserve shows that buyers with pre-approval close transactions 30% faster than those without, minimizing market delays. These steps collectively mitigate financial risks and ensure sustainable lending practices.