2.3. What Lenders Look For

In the previous sections, you looked at your finances from a consumer's (your) perspective. Now it's time to look at those finances from a lender's point of view. After all, the lender makes the ultimate decision to approve or deny your loan.

Lenders collect a lot of information about you, but they really want to know just one thing: how likely you are to make your mortgage payments until you pay off your loan. Understanding how lenders evaluate mortgage applications helps you present your household finances in the best light—and keeps you from being disappointed by unrealistic expectations.