Income
Lenders generally evaluate stable, documented qualifying income and whether it meets the rules of the selected loan program.
Mortgage qualification
Understand what drives mortgage qualification.
Qualification is not based on one number. Income, debts, credit, assets, property, loan program, occupancy, and underwriting requirements work together.
Debt-to-income ratio
DTI compares qualifying monthly debt obligations with qualifying gross monthly income. Program guidelines and compensating factors can affect what is acceptable.
Credit profile
Credit history, scores, recent inquiries, payment patterns, and derogatory events can influence program eligibility and pricing.
Assets and reserves
Funds may be needed for down payment, closing costs, reserves, or other transaction requirements depending on the program.
Property
The property itself must meet program and appraisal requirements. Financing is not based only on the borrower.
Loan program
Conventional, FHA, VA, USDA, jumbo, and other programs can evaluate the same borrower differently.
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