If you’ve reached that time in your life when you need to get a loan in order to pay for a house, first off, congratulations! It can be an intimidating process. As you go about talking to banks or other lenders to qualify for said loan, here are some factors that you can make sure are in great condition to help you find the best deal possible.

Your Income

This one is obvious, but important to remember. Mortgage lenders are not going to be giving out loans for people who want a house that resides squarely in a different tax bracket. A realistic bid is a far more likely option. Even if you are in a career where you can climb the ranks quickly and drastically improve your salary in a number of years, the lender will still lean a lot more heavily on your past and current income rather than your potential one. Decide a budget based on your salary before shopping for a home, so you can avoid that potentially awkward or annoying situation.

Your Credit Score

Your credit score is going to show a lender how dependable you have been in paying off your credit purchases. This goes a long way in terms of representing how responsible and punctual you are. Be careful! A credit score can be ruined with just one slip-up, and it doesn’t even have to be a big one. Building it up – on the other hand – takes years of careful payments. And lenders want a decently high number, too – mortgages usually require a minimum 640 credit score. Better lenders with better rates will most likely require higher scores.

Your Debts

When it comes to getting a loan approved, the basic rule is the less you owe, the better. You don’t need to be completely paid off on all of your debt, but you do need to have an excellent track record of payments. Even with a good track record, too much debt may disqualify you immediately for a loan. Your ratio of debt-to-income (also known as DTI) will be a factor as well.

Mortgage lenders are individuals. Some have to follow very strict guidelines (such as those who are employed by banks), but they also usually require a face-to-face meeting to discuss the potential loan. Be flexible and industrious when it comes to the search for a proper lender, and don’t be discouraged if you get rejected!

Check out this article for tricks to reduce your mortgage payment!