Build sufficient home equity, typically at least 15% to 20%
Maintain a strong credit score, usually 620 or higher
Keep your debt-to-income ratio low, ideally below 43%
Show stable and verifiable income
Have a history of on-time mortgage and debt payments
Keep your mortgage balance well below your home’s value
Provide proof of homeowners insurance
Have a property in acceptable condition
Prepare recent pay stubs, tax returns, and bank statements
Avoid recent bankruptcies, foreclosures, or major delinquencies
Meet the lender’s loan-to-value requirements
Demonstrate enough cash flow to handle the new payment
Be ready for a home appraisal
Have a clear purpose for the loan if the lender requires it