Home Buying

What Mortgage Lenders Actually Look For

Beyond the score: DTI, reserves, employment history, and letters of explanation.

Credit score is one input among many. Mortgage underwriters build a full picture.

The five main categories - Credit (score, tradelines, derogatory history) - Capacity (income, DTI, employment stability) - Capital (down payment, reserves after closing) - Collateral (the property, its appraisal, its condition) - Conditions (loan type, occupancy, market)

Common surprises - Recent job change requiring a written verification - Large deposits requiring letters of explanation - Non-borrowing spouse credit in community-property states - Student loans in deferment counted at hypothetical repayment

Preparing all five buckets in parallel is what makes a smooth approval.

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