6d • General discussion
🏡 Homebuyer Education: What Mortgage Lenders Are REALLY Looking For
One of the biggest myths people believe is...
"If my credit score is high enough, I'll automatically get approved for a mortgage."
❌ That's NOT true.
A mortgage lender looks at your entire financial picture, not just one number.
Here are the 5 things every lender evaluates:
1️⃣ Credit History
Your credit score is important, but they're also looking for:
- Late payments
- Collections
- Charge-offs
- Bankruptcies
- Foreclosures
- Repossessions
- Overall payment history
They want to know...
Can you consistently pay your bills?
2️⃣ Income
They need to know you have enough income to comfortably afford a mortgage payment.
This includes:
✔ Employment income
✔ Self-employment income
✔ Retirement income
✔ Disability income
✔ Child support (when applicable)
✔ Other qualifying income
3️⃣ Debt-to-Income Ratio (DTI)
This is one of the biggest reasons people get denied.
Your DTI compares:
Monthly Debt ÷ Monthly Income
The lower your DTI, the better.
Too much debt—even with a good credit score—can keep you from getting approved.
4️⃣ Savings
Lenders want to know you have money set aside for things like:
- Earnest money
- Down payment
- Closing costs
- Emergency savings
- Mortgage reserves (depending on the loan)
Having savings shows financial stability.
5️⃣ Employment Stability
Most lenders like to see a stable work history.
Changing jobs isn't always a deal breaker, but consistent employment makes your application stronger.
🩷 Here's the Good News...
If one of these areas isn't where it needs to be...
That's exactly why you're in Property Over Purses.
Over the next six weeks, we're going to work on improving each one of these areas so you can become a stronger homebuyer.
Remember...
We're not chasing a house... we're building a lifestyle that qualifies us for one. 🏡✨
💬 Discussion Question
Which area do you think will be your biggest challenge?
🏡 Credit
💰 Income
📊 Debt
💵 Saving
💼 Employment
Drop your answer in the comments. There are no wrong answers—we're here to grow together.
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🏡 Homebuyer Education: What Mortgage Lenders Are REALLY Looking For
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