• fishy@lemmy.today
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    3 days ago

    Income is a massive part of how they determine if you can repay the loan. I personally have an exceptionally high credit score and about double my home’s value in investments. Because of my low reported income, it was a total pain getting a loan.

    • Auth@lemmy.world
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      3 days ago

      income is not a massive part of how you can repay the loan. Income can fluctuate over a 10-20 year period. I’ve had the opposite, I have a good credit score, good spending habits and was able to show that although my income is average I can accommodate the mortgage payments. If you made 90k but had a bad credit score and spent wastefully you would get denied for someone on 55k who has a good credit sore and lives within their means, has savings etc.

      • fishy@lemmy.today
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        3 days ago

        Debt to income ratio. Saying income isn’t a massive part of loans is just wrong.

        • Auth@lemmy.world
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          2 days ago

          Saying it is a massive part of loans is wrong. If you had 150k a year income and your expenses were 150k a year you would never get approved. Income is one thing they look at but i wouldnt say its a massive part of the equation.

          • fishy@lemmy.today
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            2 days ago

            …debt to INCOME ratio. Debt is important here, as is the other half of the equation.

            In your example, if the individual’s income doubled would they likely be able to secure another loan?

            I am not going to respond again, it’s not my job to educate you.