The process of getting approval for a mortgage involves scrutiny of your financial situation. There are many things that can affect whether you’re approved, and even more that can affect the type of mortgage you qualify for. Interest rates are particularly variable dependent on your credit score. But what do lenders check for in a credit report? Here are some of the basics to be aware of:

Recent Applications & Long-Term Accounts

One thing that banks and lenders will examine in your credit report is whether you’ve recently opened any new accounts. This also counts applying for other loans or lines of credit. These facts matter to lenders because a lot of applications in a short amount of time might indicate risky financial behavior.

Another thing lenders will look at is how long you’ve had your other accounts. Any credit cards, rewards programs and utility accounts fall into this category. The more long-term accounts you have on your report, the lower risk you are to a lender who prioritizes reliability and consistency.

Payment History

The payment history of anything on your credit report is also something a lender will pay attention to when you apply for a mortgage. Credit cards, other loans, lines of credit or other regular bills you pay can all show up under this part of your report.

A solid payment history showing consistent, on-time payments can boost your chances with a lender. Conversely, evidence of late payments or delinquent accounts makes you look like a riskier investment.

Credit Utilization

The credit utilization portion of your credit report shows how much of a balance you regularly keep on your accounts. Most financial experts advise keeping your credit usage under 30%, which would mean spending only 30% or less of your total available credit. You can accomplish this goal by keeping up with payments and not carrying an exceedingly high balance month-to-month.

These are only a few major factors in determining your eligibility for a mortgage on your credit report. However, understanding how these things factor in to your credit score will help you maintain and improve it to get the best mortgage rates.