When considering your mortgage, lenders look at a variety of factors, including your ability and willingness to repay the loan.

Your ability to repay is verified by your current employment and total income. Your willingness to repay is closely related to how you've fulfilled previous financial commitments. This is why lenders place such an emphasis on your credit report. It is important to remember that there are no rules carved in stone. Each applicant is handled on a case-by-case basis. So even if you come up a little short in one area, perhaps one of your stronger points will make up for the weak one.

Low Down Payment Mortgages

Even if you do not have a lot of money to use as a down payment, you still may be able to purchase a home. More and more borrowers are taking advantage of low down payment mortgages and becoming homeowners with as little as 5 percent down. With these loans, however, you may be required to carry Private Mortgage Insurance (PMI). See our Down Payment section for more information on PMI.