As a mortgage loan is a financial transaction, there are four aspects of your finances that are used to assess whether or not you meet the mortgage requirements.

• Credit Score, if you have a very good credit score 740-799 or excellent score 800+ you are likely to get a favorable interest rate and approval.
• Down payment, if you are able to provide a large down payment, it allows lenders to understand your saving habits. By doing this it will also provide lower monthly payments. If you do not have any savings or extra funds your loan may be denied.
• Debt-to-Income (DTI) ratio, to determine your DTI lenders will divide your total monthly income by your total monthly debt. If you have a DTI of 43% or less this is typically classified as ideal however, each program differs.
• Income & Employment, lenders need to ensure you have stability and can afford a consistent monthly payment therefore they will require you to provide two years of federal tax returns, W-2s and paystubs.