How Lenders Make Sure You’re Mortgage Worthy

Posted by Admirals Cove Homes on Jul 9, 2013 in Home, Real Estate | 0 comments

When the housing market crashed several years ago, banks learned the hard way that they needed to be a little stricter when it came to approving mortgages. Borrowers started defaulting on the loans and it left the banks scrambling. As a result, banks have become much more conservative when it comes to approving a home loan.

So how do banks determine if you are mortgage worthy in the new housing market? Well, they start off by looking at your credit score and your debt-to-income ratio. By doing this, they can determine whether you are a person that they want to loan their money to.

The debt-to-income ratio tells the banks how much you can realistically spend on a mortgage each month, while the credit score tells the bank how you have historically handled your money.

For more information on home listings in Admirals Cove, contact Rob Thomson and the rest of the Admirals Cove team at (561) 743-0344 or acteam@wfpcc.com.