1. What will a lender look at when I apply for a mortgage?
2. What does it mean to get pre-approved?
3. What if I've had credit problems?
4. What is the minimum down payment I can make on a home?
5. Will I have to pay for Private Mortgage Insurance?
6. What closing costs will I have to pay?
7. Should I pay discount points?
8. Should I choose a fixed-rate or adjustable-rate loan?
9. Should I lock my rate?
10. What will my mortgage payments include?

What will a lender look at when I apply for a mortgage?

Lenders consider many factors in evaluating your loan application, but they usually focus on four areas:

1. Income and debt: How much money you make and what other bills you have to pay helps the lender determine whether you can afford to make mortgage payments.
2. Assets: The lender needs to make sure you have enough money to cover the costs of buying a home.
3. Credit: Whether you’ve met other financial obligations helps the lender predict whether you will repay your mortgage.
4. Property: The home you want to buy has to be worth enough to act as collateral for the mortgage.