Lender approval: Factors to consider before buying a Boston condo for sale

If you are nervous about the home loan process of today, you’re not alone. Most Boston Seaport condo buyers understand that banks are decidedly more particular when it comes to lending money to home buyers, but not many people thoroughly understand all of the factors that go into the process of determining whether an individual is qualified to borrow money from the lender.

Here is a list of the main factors considered by lenders when determining home loan approval for that Boston Seaport condo:

Your Debt Load –

Some Boston condo buyers today carry a high burden of debt when compared to their income. Although you may have religiously made payments to all of your creditors in the past, the sheer amount of your debt could prevent you from obtaining a home loan. Lenders consider debt load because it often determines your ability to continue to handle your debt.

Your Payment History –

In addition to your debt load (also called your debt-to-income ratio), lenders will look at your payment history. From rent payments to credit cards and utilities, lenders look at how well you manage every type of debt.

Your Past Credit Inquiries –

If you want to apply for a home loan, avoid applying for any  other type of credit or loan around that time period.  Lenders do not want to see you applying for other types of credit because it indicates that you may be taking on more debt than you can handle.

Your Types of Credit – 

The type of credit you take on is important in the eyes of a lender, as they want to see proof that you are able to manage a number of debts, including credit card debts, installment loans and the like.

Your Employment History –

A strong employment history is incredibly important in the eyes of a lender because it shows financial stability. In other words, it is best to avoid changing jobs or changing occupations if you plan on applying for a home loan in the near future.

Your Cash on Hand – 

A lender will determine your financial stability by the amount of money that you currently have in savings or have set aside for the purchase of the home. Your ability to save money indicates that you are likely conservative with your finances and are therefore a good credit risk.

Author Profile

John Ford
John Ford

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs

In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.


For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.


Back Bay

Beacon Hill

Charles River Park


North End

South End

Seaport District

South Boston



Surrounding Communities of Boston
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.

John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114



Call Now