Creditors look for ways to help them predict your future credit behavior. They want to:

• Understand their financial risk if they decide to give you credit
• Make good business decisions on each application for credit

Each creditor decides how much risk it can afford, and may base its final credit decision on:

• Your overall credit picture. Whether you've met other financial obligations helps the lender predict whether you will repay your mortgage.
• Your income and debt. Knowing how much money you make and what other bills you have to pay helps the lender determine whether you can afford to make mortgage payments.
• Your assets. The lender needs to make sure you have enough money to cover the costs of buying a home.
• The overall property value. The home you want to buy has to be worth enough to serve as collateral for the mortgage.