🏡 5 Things Lenders Look for When You Apply for a Mortgage (That Have Nothing to Do With Your Rate)

When most people think about getting a mortgage, their mind immediately jumps to the interest rate. But there’s a lot more that goes into qualifying for a home loan than just the rate. Whether you’re a first-time buyer or a seasoned homeowner, understanding what lenders are really looking for can help you get ahead of the game.

Here are five key things that matter—maybe even more than you realize:

1. Your Credit Profile (Not Just the Score)

Yes, your credit score is important—but it’s only part of the story. Lenders also look at your payment history, the types of credit you use, how long you've had credit, and how much of your available credit you're using. A strong, consistent history of on-time payments can carry more weight than you might think.

2. Your Employment and Income Stability

Lenders want to see a stable, predictable income. Even if your income is high, frequent job changes or gaps in employment can raise questions. Ideally, they want to see at least two years of consistent work history in the same field. If you're self-employed, solid tax returns and financials are key.

3. Your Debt-to-Income Ratio (DTI)

This is the comparison of your monthly debt payments to your gross monthly income. A lower DTI suggests that you manage your money well and are less likely to overextend yourself with a mortgage. Even if your credit is great, a high DTI can limit how much you can borrow.

4. Your Down Payment and Assets

Lenders want to know where your money is coming from. Is your down payment coming from your own savings? A gift? Proceeds from another sale? They'll also look at your reserves—money you’ll still have in the bank after closing—to make sure you’re not emptying your account to buy a home.

5. The Property Itself

Not all homes are created equal in the eyes of a lender. Condition, location, property type, and use (primary residence vs. investment) all play a role. Some properties may need extra scrutiny or special guidelines, especially if they’re unique, rural, or multi-unit.

Final Thoughts: Getting a mortgage is about the full picture—not just one number or one factor. If you're thinking about buying or refinancing, take a little time to review your finances and documentation. A strong application is like a puzzle, and every piece matters.

Have questions? That’s what I’m here for!