Getting ready to buy a home but not sure where to start? Continue to read to find out what lenders look for when approving a home loan.

Credit
Of course, lenders check your credit history. This is exactly what you will have to work on, not only to buy a house but even to simply rent it.

Income
It’s not just how big your income is. What matters is whether your income can cover your monthly household payments. Remember that mortgages plus insurance plus property taxes should not exceed one-third of your monthly income.

Current loans
Lenders just want to see if you have any loans that can affect timely home payments. This is why if you have a good credit score it can help.

Down payment
The larger the down payment, the better. It would be good to make an initial payment of at least 20%. The bigger, the better.