What lenders actually look for
What is a lender really deciding?
3 minute read
A lender is answering one question: will this person make this payment for the whole term? They answer it with four things a lender checks.
Credit — will they pay, based on how they have paid. Income — can they pay, based on income the lender can document. Cash and reserves — the money for the down payment and closing, plus what is left afterward. Stability — how predictable the income and the situation look.
These are checked together, not separately. Strength in one can offset weakness in another, which is why a flat “what score do I need?” rarely has a clean answer.
Why this matters
Knowing all four stops you from fixing the one you already knew about while the real blocker sits untouched.
What to do with this
- Name which of the four is your weakest before you apply — that is the one to work on.
- Ask the lender directly which one is limiting you. They will usually tell you.
Want this applied to your own numbers?
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