Residential Mortgage Application: 3 Key Factors to Qualification

Filling out a residential mortgage application is the first step in the process of getting qualified for a loan. Here are a few key factors that the lender is going to look at when approving you for a mortgage.

1. Credit Score

The most important factor in getting qualified for a mortgage is your credit score. You are going to have to have a good credit history in order to get approved. In most cases, you will want to have a credit score of about 700 to ensure that you get the best deal. If your credit score is below 680, you are most likely going to find yourself working with a subprime lender.

2. Income

Another important factor in getting approved for a mortgage is the amount of income that you make. Your lender is going to want to make sure that you make enough money to comfortably make your mortgage payment every month. They are going to want to see your recent pay stubs and verify that you are actually employed.

3. Debt

In addition to verfiying your income, the lender is going to want to see how much debt you have. They will use this to create a debt-to-income ratio to evaluate you.

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