What Is Needed for Mortgage Approval?

Mortgage lenders request specific documentation from individuals who apply for a home loan. Knowing your lender's requirements beforehand and having the necessary materials on hand can help speed the process.

Benefits of Regular Income

The ability to meet a mortgage obligation is imperative when applying for a home loan. Demonstrate your ability to afford a mortgage by providing copies of your most recent tax returns or income statements from your employer.

Importance of a Good Credit History

Adequate income isn't enough to qualify for a mortgage. Your credit history helps lenders determine whether you're a good candidate for a mortgage. A history of late payments or delinquent accounts on your credit report can result in a home loan denial. Keeping credit card balances low and having a score of at least 680 helps you acquire a mortgage.

Warning

Mortgage lenders used to approved home loans and provide 100 percent financing. Nowadays, the majority of lenders require some type of down payment on home loans. Down payment minimums vary according to loan program. Three to five percent of the sale price is a common down payment amount.

References

• Home Loan Learning Center: Qualifying for a Mortgage