The most important step in your journey toward buying a new home is getting mortgage approval from the bank. Almost no one has enough liquid assets to purchase a home outright, so a loan is essential. The trouble is that lending the amounts of money needed to buy a home is a risk for a bank, so not everyone will be approved when they apply for a mortgage. Here are some of the things banks look for so you can figure out your chances of qualifying.


The biggest factor determining whether you'll be able to make the payments on any real estate that you buy is how much money you earn on a monthly basis. If you've got a good, steady job with some job security and a decently long record with the company, you'll be in good stead, especially if you can get a letter of employment from them. Anyone who is unemployed can virtually forget it. Even people who regularly change jobs will have trouble qualifying in many cases. When you head to the bank or mortgage broker you will need proof of employment. A lender will need to be able to verify your income and the amount of money you make and owe. You may need a letter from your employer verifying your status of your employment history and income.

Credit History

Banks can extrapolate your responsibility with money by looking at your loan and payment histories on your credit report. If you previously bought real estate and were foreclosed upon, you won't be judged a very good risk. Any credit accounts you have, such as student loans, car loans, credit cards, cell phone contracts, and utilities accounts will appear on your report, so make sure to keep up with all your payments and make them on time. You can click here for some advice on how to improve your credit score.

Amount Requested

Sometimes, whether it's an attempt to boost their social status or a case of the eyes being bigger than the wallet, people will apply for mortgages on properties that they cannot afford. By looking at your income and the market price, the bank can figure out the likelihood of you keeping up with your payments. Anyone who is looking for a mortgage where the payments would be more than 30% of their income is edging into a sketchy zone in terms of approval.


Your chances of getting approved for a mortgage are greatly improved if you have a support system in place. Having a second income earner such as a spouse apply with you, or getting a relative who is already judged to be financially stable to cosign with you will relieve the loan officer's mind, because there will be someone else to put on the hook for payments if you fall into arrears. A special thank you goes out to our website funding partner,

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