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Getting pre-approved is a crucial initial step when considering the purchase of a home. This process involves contacting your lender to determine your buying capacity based on your income, anticipated down payment, other expenses, and credit score. Being pre-qualified not only helps you understand the price range you should consider but also signals to sellers that you are a serious buyer. Here's a breakdown of what you typically need to qualify for a conventional loan: 

1. Down Payment: Ideally, your down payment should be 20%. For example, if the house you are looking for is $300,000, you should have $60,000 as a down payment. Putting less than 20% down requires a monthly insurance fee known as PMI, which can be removed when you have enough equity in your house.
2. Debt: The less debt you have, the better. The lender will calculate your backend debt to income ratio (DTI), which ideally should be no higher than 36%.
3. Credit Score: Ideally 740 or above. A higher credit score qualifies you for the best interest rates on your mortgage.
4. Employment History: Ideally, you should have been employed for the last two years, with lenders asking for your last two years' tax returns to determine your income.
5. Number of Applicants: You can apply with someone else to use both incomes, but keep in mind the lender will use the credit score of the lower applicant.

These components are essential for understanding your qualification for a conventional loan and preparing you for the home-buying process.