Top 3 Factors Affecting Mortgage Approval
When you apply for a mortgage, not all lenders take into consideration the same factors. CityWorth Loans is different from other lenders because of our in-house underwriting team, our vast network of mortgage professionals, and our experience helping many prospective homebuyers. We prioritize you and we’ll work hard to get you approved quickly and easily.
Although lenders look at many things when considering your application for a home loan, there are 3 main factors that affect mortgage approval the most, including:
Your job history. A mortgage lender’s top concern is whether a prospective buyer will be able to keep current with mortgage payments each month. In the past, some lenders were less concerned with an applicant’s job history than they were with other factors, including the amount of down payment someone could put down. Over time though, mortgage lenders have realized that it isn’t just about someone qualifying for a home, but their ability to stay in that home and keep up with the mortgage payments over time. As a result, your job history is one of the top factors that affects mortgage approval. This doesn’t mean that if you are in a relatively new job you must hold off on applying for a mortgage – if you can show that you have been gainfully employed and have a solid work history, you may still be able to qualify.
Your current debt. Along with job history having an impact on your perceived ability to make your monthly mortgage payment is your debt. Lenders want to see that you are responsible with money and have a history of making payments on time. Additionally, they want to make sure that getting into a home won’t overextend you financially. All lenders approve different debt-to-income ratios, so your best bet is to give us a call or apply online to see how your current debt will affect the amount of mortgage you’ll qualify for.
Your credit score. This is a big one, and a factor you’re probably already well aware of. Your credit score reassures lenders that you will pay your mortgage payments. The higher your credit is, the more likely you are to qualify for a mortgage. Not only that, but you are more likely to get a better interest rate on your mortgage. Before buying a home, consider taking action on things to improve your credit--pay down debt, make payments on time, and check for any errors on your report.
To learn more about what affects a mortgage approval or to pre-approved, contact us today!