How Ability to Repay is Calculated
I wrote this blog many years ago. While there has been some improvement in simplifying the information that consumers get to better understand the process, there continues to be confusion about how lenders make their decisions. I felt it would be useful to repost it.
Lenders take two critical factors into account when considering an application for a mortgage loan. They evaluate the borrower and the property. When evaluating a borrower, lenders want to know about their:
- Ability to repay
- Track record of repayment of their other financial obligations.