Mortgage rates, a quick primer
For what reason? Because in order to qualify for a home loan, the lender has to feel that you will have enough money to make your all of your debt payments comfortably. If a lender looks at your income and debts and sees too many debts for too little income, he or she may prefer to offer you a lower loan amount, perhaps with a higher interest rate. Or won't approve you at all. Your lender has evaluated your debt and income comparison, and feels that you can make payments comfortably? Next, they'll take a look at the next standard that successful applicants must live up to: your "willingness to pay. " To determine whether or not you can be counted on to pay your home loan, they take a look at your credit report and payment history.