What Do Lenders Look at?

While every lender and mortgage program is different, in general, lenders look at five things to make their overall credit decision.

Credit Score

Your credit score is a major factor in getting a mortgage. Fortunately, there are financing options for all ranges of credit scores.


Loan-to-value is how much money a consumer is borrowing compared to how much money the property is worth. Rates and programs can vary depending how much money you put down, or how much equity you have if you’re refinancing. 

Debt-to-Income Ratio

Debt-to-income is how much overall monthly debt you have compared to how much monthly income you earn. In general, it’s better to have less debt, but there are programs available for all situations.

Type of Property

Buying an owner-occupied single-family residence is very different from buying a four-family multiplex investment. Different levels of risk associated with certain types of properties result in different programs that lenders will offer.

Loan Amount

The lenders need to consider the risk involved in funding a loan of $1,000,000 versus a loan of $300,000. The program and rate will vary based on the individual loan amount.

Remember that every situation is different. Also, keep in mind that the market changes every day, so even if your situation is very similar to that of someone you know, it really depends on the timing of your application. Contact a mortgage consultant today to see how you can take the first step in securing the best mortgage.

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