When reviewing a mortgage application, lenders look for an overall positive credit history, a low amount of debt, and steady income, among other factors. Here are some of the key things that mortgage lenders look for:

• Credit score: Lenders will review your credit report to ensure that you have a healthy credit score. A credit score is a three-digit number based on the data in your credit report. It gives lenders a reasonable idea of how likely you are to repay their borrowed money.

• Payment history: Lenders will review your payment history on credit cards, loans, lines of credit, and anything else that shows up on your credit report. They want to make sure you have a track record of on-time payments that could indicate youll be a responsible mortgage borrower.

• Debt-to-income ratio: Lenders will look at your debt-to-income ratio, which is the amount of debt you have compared to your income. They want to make sure that you have enough income to cover your debts and still afford the mortgage payments.

• Employment history: Lenders will review your employment history to verify that you are employed and have a stable income. If you have any employment gaps or other signs of poor work history, your loan is more likely to have a higher interest rate.

• Assets: Lenders need to know if you have the savings to cover not only a down payment but also the potential closing costs on the deal. Savings can also help a mortgage borrower in the event of an unexpected medical emergency or job loss.

• Bank statements: Lenders will look at your bank statements to verify that you can afford the down payment, closing costs, and future mortgage payments. They will also check for any inconsistencies between your application and what shows up on the bank statement.

In summary, mortgage lenders look for borrowers who are likely to repay the loan and have the lowest possible risk of defaulting. They evaluate various factors such as credit history, debt, income, employment, assets, and bank statements to determine the loan terms you will qualify for.