Lenders are concerned about your ability to repay the loan. They want to be sure that you will cover your payments and take care of the property. Lenders are careful about who they loan money to for purchasing a home. They look at different pieces of information to approve your loan. Here are the most important factors lenders use to approve different mortgage services in Parkland for you. Credit Report Your credit report is what lenders look at closely to approve the loan. They focus on the score and look at other factors including Outstanding Applications: This is when lenders are seeing if you applied for credit and any other loans. A large number of applications raise concerns about the wave of potential debt. Lenders want to be sure you not taking on too much debt. The outstanding applications offer insights about if you are heading for financial challenges. Payment History: The payment history shows your ability to pay your bills on time. It highlights your track record for making payments and managing debt. This demonstrates your consistency to remain current with your finances. Credit Ratio: The credit utilization ratio is when lenders look at your credit versus income and assets. This helps them to decide if they can afford to take on the mortgage and handle the extra expenses of owning the property. Bankruptcies and Discharges: Bankruptcies and creditors discharging a debt can hurt your credit score. It shows that you are a risky borrower for delinquent accounts, charge-offs, and settlements for less than what you owed. Usage: Your ability to use and manage credit responsibly goes a long way in building confidence. Lenders will look at all of your debt to decide the best course of action. They will look at the amount that you have and compare it with your income. This will tell them if you are fiscally responsible. These different things are what lenders will look at to decide if you should receive the loan. You want to always think about taking on any debt if you are paying on time, and how you can reduce your debt. This increases your credit rating and it shows you are a good risk. Income Lenders like borrowers that have stable incomes. They want to see your sources of income for the last three years. This is compared to all of your debt to decide if you can afford the mortgage payments. High levels of debt compared to your income will cause lenders to become cautious. They will see the excess debt as a burden that could harm your ability to cover the payments. We recommend keeping your debt levels as low as possible to ensure you meet the income qualifications for the mortgage. Contact Us Today These are the most important factors lenders use to approve mortgage services in Parkland for you. Contact Ace Mortgage today at 954-777-2165 and let us help you to find that perfect mortgage. We are the best place for all of your mortgage services in Parkland and will assist you in getting the right ones.