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

• 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.
• Assets.  The lender needs to make sure you have enough money to cover the costs of buying a home.
• Credit.  Whether you’ve met other financial obligations helps the lender predict whether you will repay your mortgage.
• Property.  The home you want to buy has to be worth enough to act as collateral for the mortgage.