If you've been renting a home or apartment for a while, you may be finally ready to make the jump to owning your place. If you're unsure where you stand, you should talk to a mortgage lender before you start shopping for a home. That way, you'll know what kind of loan you can qualify for and how much you can afford. Once you have that information, you can confidently start your search for the perfect home. To know if you qualify for a mortgage loan, a lender will look into the following:

Credit Score

A credit score is calculated based on information in an individual's credit report, and it is used to determine whether or not an individual will be approved for a loan. A high credit score indicates that an individual is a low-risk borrower, making it more likely that the individual will be approved for a loan. On the other hand, a low credit score indicates that an individual is a high-risk borrower, making it less likely that the individual will be approved for a loan. Generally, the higher the credit score, the more favorable the loan terms will be. For example, individuals with high credit scores will typically qualify for lower interest rates than those with low credit scores. Consequently, individuals with high credit scores will save money over the life of their loans. For this reason, it is important to understand how your credit score affects your ability to access a mortgage loan.

Income

Before a lender can approve you for a mortgage loan, they will need to assess your income. This is because your income will play a big role in determining whether or not you can afford the loan payments. The lender will also need to know what type of income you have (e.g., salary, self-employment, investment income, etc.) since it will affect how they calculate your ability to repay the loan. Ideally, the higher your income, the more likely it is that you will qualify for a mortgage loan.

Assets

Assets are important for a mortgage loan because they are something the lender can use as collateral if you default. They can be anything from savings accounts to stocks and bonds. The more assets you have, the better your chances of getting approved for a mortgage loan. Assets are also important because they show the lender that you have the means to repay the loan. If you have a lot of assets, the lender may be more willing to work with you if you run into financial trouble during the life of the loan.