Credit score and credit history – This is considered one of the most important factors in determining whether a lender will approve your loan and what rates or terms they’ll provide because it provides insight into how much debt you have and how you’ve managed other credit accounts. Different types of lenders value credit score and credit history more in setting rates than others; some charge the maximum rates regardless, so it is important to shop around. Learn how your credit impacts your interest rate
Down payment – Again, by increasing your down payment, you lessen the amount you’ll need to borrow, which reduces the amount you’ll pay over the life of your loan and decreases the risk for the lender.
Income – A lender will also generally ask for your monthly income and employment situation to assess your ability to pay back the loan.
Debt to Income (DTI) ratio – In addition, a lender will also likely look at how much of your income each month is going to other debts. DTI is calculated based on total monthly bills divided by your pre-tax monthly income.
Learn what things lenders can’t consider when approving your loan