Getting Approved: How Lenders Judge You

In your everyday world, you are the one who gets to decide about the purchases you make. However, when you go to finance a home purchase or refinance your current home, you become the product and the mortgage lender becomes the decider. The underwriting department evaluates all of the information that you provide on your loan application in order to determine your eligibility. Two of the main criteria in the lender determining if you will receive a loan are your creditworthiness and your debt-to-income ratio. Your credit worthiness is a snapshot of your ability and willingness to repay your debts. The debt-to-income ratio will show your ability to repay the loan. There are other factors that go into the process as well, but these are two areas to focus your efforts on. Read the full article here: