Know your credit score As a rating of your credit worthiness, your FICO® score is a basic building block in your quest for a loan.
The cost of borrowing This includes knowing and understanding interest rates, fees and other charges that make the amount of money you’re paying back higher than the amount you borrowed. Also make sure you also understand whether you are being offered a fixed-rate or an adjustable-rate loan and the long-term implications of both.
How much you can afford to borrow You don’t want to be stuck paying more than you have to. Carefully look at your monthly expenses to see how much you can pay. Don’t forget to figure in things like rent increases or unexpected expenses that could hit down the line.