What will a lender look at when I apply for a mortgage?
Ryan Ward, Mortgage Banker, explains what lenders are looking at when you apply for a home mortgage.
While there are many factors that lenders will consider when evaluating your loan application. The following four areas are what will have the biggest impact on your application being approved or denied.
- Income and debt. How much money you make compared to the amount of revolving dept (car loans, credit cards, student loans).
- Assets. The lender will need to see that you have enough money saved incase of an loss of job or other unexpected hardship.
- Credit. Credit score and credit history will determine how likely you are to pay back the mortgage.
- Property. The home you want to buy has to be worth enough to act as collateral for the mortgage.