Mortgage loans are the most carefully scrutinized consumer loans. Detailed applications consider income, relative debt ratio, job stability, savings, credit history, and other factors. Many applicants are disapproved for mortgages solely on the basis of their credit history. Although each lender has some latitude to set credit standards, there are some general standards for approval. Most lenders will not approve loans of applicants with late payments in the last twelve months on any account or with balances owed on seriously past due accounts. Any other negative remarks usually must be explained, but will not necessarily cause disapproval. A bankruptcy will not prevent a home mortgage loan, but will be subject to a different set of credit standards. To qualify, the bankruptcy must be discharged and be two years old. There must be no derogatory credit entries whatsoever after the bankruptcy. Finally, the applicant should have re-established some credit with another creditor. Mortgage companies that will consider applicants with foreclosures impose additional, more restrictive credit standards. Generally, the foreclosure must be three years old and there must not be a deficiency balance owed. Consumers who have any doubts on their qualifications for a mortgage loan should consider pre-qualifying for a loan before making an agreement to purchase a specific home. By knowing in advance the terms, conditions, and amount of mortgage, consumers with credit problems can avoid potential embarrassment and frustration. For more information, contact a financial or real estate professional.