Part 2/12:
The first step in understanding home affordability is grasping how banks determine whether you qualify for a mortgage and, crucially, how much they are willing to lend you.
Key Factors Considered
Most lenders evaluate five main aspects:
Assets: Savings, investments, property holdings, and other wealth.
Credit Score: Indicating your creditworthiness and payment history.
Debts: Outstanding loans, credit card balances, other obligations.
Income: Steady, reliable income from employment or self-employment.
Loan Type: Conforming, jumbo, FHA, VA, USDA, etc.