The 3 Things Lenders Want To See In Your Mortgage Application

Renters underestimate their ability to buy a home.

According to recent consumer surveys, two-thirds of renters believe getting a mortgage approved would be a challenge. Yet, mortgage lenders approve close to 80 percent of the applications they see.

There are three main items a lender looks for in your approval.

  1. Your history of paying personal bills (mostly) on time
  2. Your job-related income
  3. Your semi-decent credit rating

Your lender doesn't care whether you get giant paychecks, and whether you have a money saved up for a large down payment. It doesn't care whether you have student loans.

It doesn't even care about perfect credit.

Remember: mortgage lending is flexible and forgiving. Lenders want to make loans - it's how they stay in business. There are minimum standards to meet. Everything else is a bonus.

So, when you’re ready to stop renting and start owning, believe that it’s possible. You can get approved.

Ask us your question about mortgage approvals in the chat box. We're here to help.

Dan Green

Dan Green is a former mortgage loan officer and an industry expert. He's appeared on NPR and CNBC, and in The Wall Street Journal, Bloomberg, and dozens of local newspapers. Dan has helped millions of first-time home buyers get educated on mortgages, real estate, and personal finance. Have mortgage questions? Ask Dan in the chat.

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