Credit Score Factors That Also Matter to Lenders

Your credit score and credit profile are big considerations for lenders. However that’s not all lenders consider important when trying to decide whether or not to approve a mortgage application.

Lenders also consider your employment history and the stability of your income. They want to see how much money you have saved and how you have saved it. They want to know how much of a down payment you intend to make and the source of that funding. They’ll look closely at the ratio of your monthly debt to monthly income (debt to income ratio) and also your rent and utility payment patterns. They consider the type of mortgage product you’ve applied for as well as the value and type of the property you plan to purchase. Note that anything lenders consider must be in the same name as the name of the person listed on the mortgage application.

If you haven’t had a chance to establish credit, lenders will take into consideration these other factors when evaluating whether or not you are a good credit risk. Therefore, never underestimate their importance, especially as you prepare to purchase a home.