People often wonder what lenders look for when they’re reviewing a mortgage application.  The answer is that applications are typically measured against what is known as the Five C’s of Credit.

Bob Quinlan from Mortgage Alliance does a good job of overviewing the 5 C’s.  While you’re reading this, however, remember that exceptions can be made to some of these guidelines for very strong candidates (like the 32% GDS rule for example).

On the other hand, if your borrower profile is not so strong, expect little if any lender flexibility—especially in this market.