Credit & Qualifying
What do mortgage lenders look for when approving a loan?
Updated Jul 1, 2026
The short answer
Lenders evaluate your ability and willingness to repay, generally weighing your credit history, income and employment stability, debt-to-income ratio, down payment and assets, and the property itself. These factors together determine whether you are approved and at what rate. Strengthening any of them — especially credit and DTI — can improve both your odds and your pricing.
Key points
- Credit history and score.
- Income, employment, and debt-to-income ratio.
- Down payment and cash reserves.
- The property’s value and condition.
The pieces work together
A strength in one area can offset a weakness in another — a larger down payment may help with a higher DTI, for example. Lenders view the whole picture, which is why understanding each factor helps you prepare.
Put this to work
Sources
Every claim above traces to a public government source.