The 3 Cs of Mortgage Underwriting are:

• Character
• Capacity
• Collateral

If you have all these, you will be approved. If you are not approved, your loan officer sucks.

Character:

• Is your credit score high enough? Usually 580 is good enough. Higher is better for 2 reasons: lower rate and less stipulations from the underwriter.
• Do you have sufficient credit depth? Generally, you need all on-time payments in last 12 months.

Capacity:

• Do you make enough money to cover all your debts, including the new mortgage? Debts divided by your gross monthly income should be lower than 50%. (Although we have seen many exceptions to this with compensating factors).
• Do you have a high probability of continuing to make that same income? Two years stable job history is best. However, if you do not have that, do not worry, it can be managed.

Collateral:

• Is the house worth at least the amount you want to borrow? The VA appraisal will determine this.
• Is the title of the home clear and warrantable? Your title company will determine this.