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Three key factors determine one’s qualification for a loan namely credit, income, and assets.


• Credit worthiness is most commonly documented by one’s credit report and FICO scores.  A decent credit history is a good source for lenders to rely on to make decision for granting new credit;

• Stable employment history and qualified income is another must have for a borrower to satisfy the underwriting standards.  It demonstrated one’s ability to repay a loan;

• Borrower should have sufficient assets or savings to meet the minimum required down payment, closing costs of a home purchase.  The bigger the down payment, the smaller the loan one would need and thus a lower monthly mortgage payment.


Based on the evaluation of the above three key factors of a borrower, plus other considerations such as property value, income and debt ratio, etc., underwriter determines whether he or she qualifies for a loan.