4 Factors That Will Affect Your Mortgage Application

a mortgage loan agreement application and a keySeveral factors can affect your mortgage application. Neglecting any of those factors may get your application a denial. Hiring mortgage brokers in Salt Lake City such as altiusmortgage.com can effectively help you out with your loan application.

But to increase the chances of getting your loan approved, here are some factors that you might want to consider when applying for a mortgage.

Credit Score

Your credit score plays a huge role in your mortgage application. Inadequate credit score may mean fewer chances of getting your loan approved. Normally, minor credit problems won’t affect your mortgage application, but these credit issues may reduce your credit score, which can cause your interest rate to be higher.

It’s important to request a copy of your credit score and see if there are any errors with it.

Employment Status

Your employment status will help the mortgage company determine the amount of the loan that will suit your budget. Most mortgage companies prefer a borrower who’s employed and receive monthly salary or steady hourly pay.

Lenders also offer mortgages to self-employed borrowers or those who receive other types of non-employment financial benefits. However, lenders will have to review if there are any satisfactory archives of stable income before it gets approved.

Debt-to-Income Ratio

Banks will also calculate the borrower’s entire monthly salary. They will total the debts indicated on your credit history report with any financial obligation you must pay and add it to the recommended lease payment.

The sum will then be divided into the borrower’s gross monthly salary to determine the DTI ratio.


Some mortgage plans require the borrower to have savings in the bank after the down payment and all closing costs have been settled. The banker will ask you to submit any documents stating your assets or where you received the funds to pay the fees.

Applying for a mortgage is a tedious process. Following these tips can help you with your loan application and even increase the chances of getting it approved.