To those looking to buy a new home, securing home loans in Hollidaysburg, PA might seem like the scariest part of the process. While you hear of individuals getting approved for home loans all the time, the fear of bad credit and high interest rates keeps most potential home buyers at bay. While lenders require a lot of information to determine the eligibility of your loan, it is not only for their protection, but for yours. Below are a few qualifying factors mortgage providers use to determine if and how much you’re approved for.

Income and Employment
One of the first areas of concerns for lenders is your income. The want to know how much money you have coming in compared to how much of that income must be paid out. When looking at your income they also assess how reliable this source of income is. So those who work from home and get fluctuating income might be approved for a lesser loan amount than someone who has been working at their job for ten years with consistent earnings.

Your Credit Score
Well, no one likes to discuss this, because everyone has fallen on rough times, but your credit score and history are another factor that will determine how much (if at all) you will receive from a mortgage provider. The credit history shows your pattern and abilities to repay lines of credit that have been afforded to you. It is important to understand that while the score and the history go hand in hand, the lending providers do review the history in more detail. They want to see what you’ve been responsible for in the past, and how you handled that amount. Too many negative accounts, collection accounts, and past due accounts could lead to the denial of your loan.

By considering these two factors as you try to apply for home loans in Hollidaysburg, PA, you are sure to have a much better time getting approved. While every lending provider is different, knowing what they’re looking for can help you to improve your chances of approval. Get your credit score in order and make sure you have sufficient funds to pay for your new home before applying for a mortgage.