This question is often asked.
The answer is actually very straight forward.
First, lenders want to see a good track record of you paying bills on time. They also want to make sure that applicant is able to pay off the mortgage while maintaining life basis. Lastly, they want know the source(s) of income, either salaried, commissioned, or self-employed.
Lenders qualify you mainly based on the following simple rules:
1. Credit Score
2. Debt Servicing Ratio
3. Source of income
They also want to make sure that the property, used as loan collateral, has enough remaining servicing life. High personal networth can sometimes be a strength. However, the aforementioned three are the major criteria at all time.
Additionally, they will also consider the following supplemental items:
3. The Subject Property
4. Personal Networth
Filed under: Am I Qualified?
