What lenders look for
Lenders evaluate four main areas to approve a mortgage. Knowing what they check helps you prepare clean documents and avoid delays.
The four parts of a loan file
- Credit Middle mortgage score, on time history, and credit use.
- Income Consistent earnings with documents that support them.
- Assets Verified funds for down payment, closing costs, and reserves.
- Property Appraisal value and condition that meet program rules.
Documents that usually help
- Recent pay stubs and W two or tax returns.
- Two months of bank statements for assets and reserves.
- IDs and proof of any gift funds with paper trail.
- Letters of explanation for any unusual items.
Make your file stronger
- Pay revolving balances down and avoid new late payments.
- Keep cash stable. Avoid large unexplained deposits before closing.
- Respond quickly to document requests to keep the timeline moving.
- Choose a property that fits your loan program and budget.