Potential homeowners should monitor their credit report by keeping a good score in order to qualify for a mortgage, according to a MidWestOne Bank report.

The report notes the three most important topics that a lender will review for mortgage approval are credit report, income and employment and collateral and assets.

Unless a potential homeowner has a lot of cash to purchase a new house, going through lenders is mandatory in order to borrow the money. According to MidWestOne Bank, a credit report gives lenders an overall view of your credit history. Therefore, it is important to keep your debt as low as possible, keep the least amount of credit accounts and consistently pay them on time.

Potential lenders also look at your income and employment history to see if the future homeowner has a proven track record of holding down a job, according to the bank report. They also have to have a big enough income in order to prove that they can pay back the mortgage in time.

Lastly, if a person already owns another home or a condo, they can use that as collateral for the lenders, the bank report noted. They can also use their savings accounts for an initial down payment.