There are several factors that lenders take
into consideration when deciding whether or not to loan money for a mortgage; they are
employment status and history, your credit history, your assets, and, of course, the
property. With your employment status and history, they take more than just your gross
monthly income into consideration. They are going to also look at the length of time you’ve
been with your employer, typically they look for two year history. Your credit history,
they’re going to look not only at your credit score, but how you’ve handled your debt in
the past. They also look at debt balances versus your credit limits. Your assets also
play an important part, your bank accounts, cash on hand, stocks, bonds. Also they are
going to look at any other liquid assets that you have to determine what you qualify for.
The property plays one of the biggest considerations on whether or not they decide to lend money.
What they’ll do during the loan process is determine the value of the property and decide
whether or not that that’s going to warrant lending that amount of money.