What the underwriter looks at: DTI, reserves, account age

The underwriter evaluates not just the score but the ability to pay and stability. Three banks denied Alexander not because of the number 560, but because of what stood behind it.

• DTI (debt-to-income). All monthly debt payments plus the future mortgage, divided by pre-tax income. The benchmark for most programs is up to 43%, comfortable up to 36%.
• Reserves. How many months of payments will remain in your accounts after the deal. Two months is the minimum, six looks convincing.
• Age and depth of history. Average account age and at least 3 active tradelines over 12–24 months. New cards before the deal lower the average age.
• Recent negative entries. A late payment in the last 12 months weighs more than an old one. Collections often must be closed before the deal.

6 months before applying: don't open or close accounts, lower utilization, dispute inaccurate entries, gather 2 months of statements.

The mortgage score is FICO 2, 4 and 5 across the three bureaus; the middle of the three is used. It may differ from the score in your bank's app.