Evaluating Yourself From a Lender's Point of View

1. Ability to repay the loan

• Income
• Employment

 2. Assets

• Liquid (savings, checking, CDs, etc.)
• Other (personal property, real estate, etc.)

 3. Liabilities

• Revolving and installment accounts
• Child support and alimony payments
• Pledged assets, unsecured loans

 4. Attitude toward repayment

• Credit report
• Explanation of derogatory items (judgments, late payments, tax liens, collections, etc.)
• Mortgage history rating

 5. Qualifying ratios

• Normally, your total monthly housing payment should not be more than 28% of your total gross monthly income
• Normally, your total monthly housing payment plus your other monthly recurring debts combined should not be more than 36% of your total monthly gross income