Which factors might influence a lender's decision on a mortgage application?

The decision of a lender on a mortgage application is significantly influenced by a borrower's credit history and income stability. Credit history provides insight into the borrower’s past financial behavior, reflecting their ability to repay debts. A strong credit score typically suggests that the borrower has managed their finances well, making them a lower risk for the lender.

Income stability is equally important because it assures the lender that the borrower has a consistent source of income to make mortgage payments over the long term. Lenders often look for steady employment and a reliable income to gauge the borrower’s capability to honor the financial commitment of a mortgage.

By assessing these factors, lenders can evaluate the risk associated with approving the mortgage application and make more informed lending decisions.