# Things Mortgage Lender Takes Into Account When Processing an Application Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-31 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: What Do Mortgage Lenders Look for in Your Application? Meta Description: Discover what Seattle mortgage lenders look for in your application, from your ability to repay to your employment history. Contact Sammamish Mortgage for a URL: https://financedigest.com/things-mortgage-lender-takes-into-account-when-processing-an-applicationhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/a-person-holding-a-miniature-house-and-some-dollar-1736837955610-compressed.jpg) Getting a mortgage can be a daunting task, especially if you are unaware of what the lender looks for in your application. A lot is being said and done about the perfect mortgage application, but a wise applicant needs to differentiate the facts from the myths. Getting pre-qualified is an advantage when you are seeking house sellers or real estate agents. This will also give you an idea about how much you can afford to spend on your [home or property](https://www.financedigest.com/taylor-fay-homes-recruit-cordant-projects-for-innovative-property-initiative.html "Taylor Fay homes recruit Cordant Projects for innovative property initiative"). To find out what the [mortgage lenders will look for in your application](https://www.financedigest.com/the-impact-of-furlough-on-your-mortgage-application.html "The impact of furlough on your mortgage application"), read on… ## Your Ability to Repay The first and foremost thing that the lenders look for in your application is your [ability to repay the loan](https://www.financedigest.com/student-loans-hurting-workers-ability-to-save-for-retirement.html "STUDENT LOANS HURTING WORKERS’ ABILITY TO SAVE FOR RETIREMENT"). Although it may sound quite easy to determine how much can you [pay towards your mortgage](https://www.financedigest.com/7-questions-to-ask-before-paying-off-your-mortgage-early.html "7 Questions to Ask Before Paying Off Your Mortgage Early") every month, it is not just about subtracting your expenses from the income. Any reputed Seattle [mortgage lenderwill need to look into a lot of things](https://www.financedigest.com/4-things-you-should-know-before-getting-a-reverse-mortgage.html "4 Things You Should Know Before Getting a Reverse Mortgage") besides your payslip and expenses such as your savings, investments, insurances, assets, outstanding debts, and more. One of the popular mortgage lenders in Seattle is Sammamish Mortgage. They have been successfully [**serving Seattle and its neighboring areas**](https://www.sammamishmortgage.com/mortgage-lender-in-seattle-wa/) since 1992. You can contact them today to get a quote. ## Your Willingness to Repay [Lenders only want to grant money](https://www.financedigest.com/mistakes-to-avoid-while-choosing-a-private-money-lender.html "Mistakes To Avoid While Choosing a Private Money Lender") to those applicants who are committed and exhibit a willingness to repay the mortgage. To gauge your willingness, they’ll look at all your past and current [debts and were you are able to repay the creditors](https://www.financedigest.com/sovereign-debtors-creditors-agree-on-steps-to-jumpstart-debt-restructurings.html "Sovereign debtors, creditors agree on steps to jumpstart debt restructurings") on time. Many lenders will also [check if you’ve ever missed any repayments in the past or delayed](https://www.financedigest.com/britain-delays-full-post-brexit-import-checks-until-late-2023-2.html "Britain delays full post-Brexit import checks until late 2023") them. In short, only those applicants who have good [credit ratings will be accepted by the lenders](https://www.financedigest.com/credit-chameleons-lenders-must-tune-in-to-changing-customer-attitudes.html "Credit Chameleons – Lenders must tune in to changing customer attitudes"). Your [credit reports and score](https://www.financedigest.com/12-things-that-dont-hurt-your-credit-score.html "12 Things That Don’t Hurt Your Credit Score") will be looked at by the mortgage lenders. Your rating will determine the kind of mortgage you are eligible for. Also, it [impacts the rate](https://www.financedigest.com/russia-could-hike-rates-in-2023-if-inflation-risks-have-big-impact-cenbank.html "Russia could hike rates in 2023 if inflation risks have big impact -cenbank") of interest you’ll be charged on the borrowed funds. ## Your Outstanding Debts To get a pre-approved [mortgage loan](https://www.financedigest.com/mortgage-refinancing-how-to-refinance-a-home-loan.html "Mortgage Refinancing: How to refinance a home loan"), you need not have zero outstanding debts. The lenders use the debt to income (DTI) ratio to figure out whether you have the ability to repay the existing debt and handle a new one. DTI is the comparison of the income you earn versus the outstanding debts. Thus, make sure that you do not owe huge funds while [applying for a mortgage loan](https://www.financedigest.com/home-equity-made-simple-things-to-know-before-applying-for-loans.html "Home Equity Made Simple – Things to Know Before Applying for Loans"). ## Your Income or Wages You’ll need to have proof of your income such as payslips from your employer to get [qualified for the loan](https://www.financedigest.com/can-foreign-nationals-qualify-for-a-loan-in-the-uk.html "Can Foreign Nationals Qualify For a Loan in The UK?"). For all those who are self-employed, the lenders consider their gross income. ## Employment History If you’ve been out of [work for the last](https://www.financedigest.com/remote-working-tips-to-help-it-last-longer.html "Remote working tips to help IT last longer") two years, then this could impact your eligibility to get the loan. Lenders review your employment history, and some may even call your employers to verify your [current](https://www.financedigest.com/more-than-half-of-workers-are-open-to-leaving-their-current-employers.html "MORE THAN HALF OF WORKERS ARE OPEN TO LEAVING THEIR CURRENT EMPLOYERS") employment status. They’ll also check your monthly and annual payout. In case the applicant has changed [jobs in the last two years](https://www.financedigest.com/new-year-new-job.html "New year, new job? "), the lenders will contact those companies as well. ## Assets You Posses The lenders will need your [bank and investment account](https://www.financedigest.com/new-legislation-makes-switching-bank-accounts-simples.html "New legislation makes switching bank accounts “simples”") statements. This will help you to prove the money you claim to have. They’ll also want to know if you hold cash reserves. In the case of recent [large deposits in your account](https://www.financedigest.com/euro-zone-current-account-deficit-widens-again-on-large-energy-bill.html "Euro zone current account deficit widens again on large energy bill"), the lenders may want to know in detail about them as well. ## The Down Payment Usually, [mortgage loans do not require the eligible applicant](https://www.financedigest.com/smartr365-launches-mortgage-kanban-workflow-tool-smooth-mortgage-application-tracking-brokers.html "Smartr365 launches ‘MortgageKanban’ workflow tool to smooth mortgage application tracking for brokers") to pay any down payment. However, if you are asked for a down payment, then the [lender may fund](https://www.financedigest.com/closing-the-funding-gap-how-alternative-lenders-the-secret-to-sme-survival-in-europe.html "Closing the funding gap: How alternative lenders the secret to SME survival in Europe") up to 90% of the purchasing price. ## Can a Mortgage Application be refused? Yes, there are many reasons why your mortgage application can be declined. Some of the reasons are mentioned below: - Not enough [income or higher](https://www.financedigest.com/macquarie-posts-record-profits-on-higher-income-from-commodities-arm.html "Macquarie posts record profits on higher income from commodities arm") expenses - The [lender thinks you cannot afford to repay the loan](https://www.financedigest.com/uk-lenders-trial-government-backed-loans-for-risky-borrowers.html "UK lenders trial government-backed loans for risky borrowers") - The size of the mortgage is higher than your budget - No guarantor for your mortgage - [Bad credit](https://www.financedigest.com/the-definitive-guide-on-how-to-get-a-bad-credit-business-loan.html "The Definitive Guide on How to Get a Bad Credit Business Loan") rating To conclude, always make it a point to [work with a trusted](https://www.financedigest.com/trust-the-foundation-of-international-remote-working-culture.html "Trust: The foundation of international remote working culture") mortgage lending company to avoid your loan application being rejected and avoid any hidden charges. They will help you all the way with the transactions and make it possible for you to own your [dream home](https://www.financedigest.com/to-be-a-young-person-and-own-your-own-home-should-be-a-dream-that-everyone-has-the-right-to-fulfil.html "“To be a young person and own your own home should be a dream that everyone has the right to fulfil.”"). **This is a Sponsored Feature** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---