Posted On May 28, 2025

1) Capacity: Can you afford the monthly payments?

2) Capital: How much of your own money/equity are putting in?

3) Character: Do you have good history paying creditors back?

4) Collateral: Is the home a good backup for the loan?

5) Credit: What does your credit score say about you?

Lenders look at all 5 to decide if you're a safe bet.