November 11, 2012 Josh Cantwell (0) There’s been a lot of coverage in the news lately about low interest rates on home loans, and this is causing more and more people to either try and refinance or get approval to move forward with a new home purchase. Even though mortgage rates are low and deals plentiful, it’s still not easy to get approved for a loan. But what do lenders actually want in a borrower? There are three main things that lenders look for: Excellent credit history – If your credit is great – 720 or above, you should be able to get a loan with a great interest rate. Credit rates of 690-715 will still get very favorable rates. Low loan to value ratio – This is the amount you owe on your home in relation to the value of your home. Stable income – This is to make sure you can take on additional debt of a home equity loan. Most lenders will look for a total debt amount of no more than 36% of monthly income. Read the whole article here.