You may be a little worried about the whole loan process and whether or not you will be approved. Though this tends to be a normal fear, most people apparently have the same apprehension. All you need to do is learn about the basics, have a general knowledge of home loans when you go to apply, and collect all of the required information and materials before you attempt the application process.

Although there are so many factors and variables that go into a lender’s approval or disapproval for a loan, there are some common factors that will probably affect how the lender responds to you in contrast with other persons.

Lenders will definitely look at income stability. People with good jobs or long term jobs with a steady income are more likely to be trustworthy because their income is steady and predictable.

Lenders will also look at debt-to-income ratio. If you have a strong income but a lot of debt, lenders may look at your application twice. Any debts usually send up a red flag, but with people who have plenty of income and are still in debt, it presents even more of a mystery.

The loan-to-value ratio will also be reviewed, meaning how much you are asking for in relation to how much your home is costing you. If you are paying a lot for the down payment, that is probably a comfort to the lender.

A lender will certainly look for an appraisal, which is an estimated value of the home. The higher the value the more likely the lender is to want to help you, as the home equity and therefore, the lender’s insurance, will be higher to ensure that they will have alternate reimbursement or payment from you if you fail to pay back your loan.

Don’t sweat it if you have had some debt or your income is not so impressive! Wells Fargo Home Mortgage understands this and wants to help you achieve your home finance goals. Wells Fargo is not out to get you or swipe all your money. Your business is welcomed and 100 percent customer satisfaction is guaranteed.