{"id":369330,"date":"2016-04-04T10:47:23","date_gmt":"2016-04-04T15:47:23","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/realestate\/mortgages-equity-loans\/qualifying-for-mortgage.html"},"modified":"2021-12-22T13:24:01","modified_gmt":"2021-12-22T18:24:01","slug":"qualifying-for-mortgage","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/mortgages-equity-loans\/qualifying-for-mortgage.html","title":{"rendered":"Qualifying for a Mortgage"},"content":{"rendered":"\n
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Qualifying for a Mortgage<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

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Qualifying for a mortgage is an important first step toward purchasing a home or business. In fact, your ability to qualify for a loan (and the terms for which you are eligible) will often decide how much house you can afford. Issues such as your interest rate and whether you can become prequalified for a mortgage loan are extremely important matters, especially for first-time buyers.<\/p>\r\n

Determining whether you can afford a mortgage involves a calculation which takes into account your earnings, expenses, employment (and employability), and credit history. Lenders take your credit score in particular very seriously. While it may seem complicated and unnecessary, it’s very important to know the details of a mortgage before you even start shopping for a home.<\/p>\r\n

Understanding Interest Rates, Points, and Fees<\/h2>\r\n

A combination of interest rates, mortgage points, and fees will largely determine the overall cost and monthly payments of a mortgage. By preapplying for a mortgage and learning about your eligibility, you will get a better idea of what you can afford before you start looking for homes. Below is a brief description of each of these factors:<\/p>\r\n