What Do You Need for a Mortgage Loan?

What Do You Need for a Mortgage Loan

If you are stuck on the question “What do you need for a mortgage loan?” then you have landed on the right site. If you’re planning to buy a house, understanding what you’ll need in terms of mortgage criteria might help you choose the ideal lending program for you. 

Getting a mortgage is an essential step in buying your first home, and there are various aspects to consider when selecting the best one. While the plethora of financing choices available to first-time homebuyers may appear intimidating, researching the fundamentals of property financing can save your time and money.

Here are some crucial things that you’ll surely need while applying for a mortgage.

Bank Statement

The most important thing about our topic, and what you need for a mortgage, is a bank statement. To verify your income, savings balances, and down payment source, your mortgage lender will generally request 2-3 months’ worth of bank statements. You may receive these statements in the mail or download copies online, depending on how you set up your account. If there are any substantial deposits, the lender will require evidence to show where the funds came from.


A mortgage pre-qualification can help determine how much a person can afford to spend on a property, but a pre-approval is far more effective. It indicates that the lender has evaluated the prospective buyer’s credit and verified the documentation to authorize a specified loan amount.

Consultation with a lender and securing a pre-approval letter benefits potential purchasers in various ways. When the buyer obtains an appraisal and the loan is for a property, the loan is officially approved.

Rent History

Many lenders will ask for some proof that you can pay on time if you don’t already own a home. For example, they can ask for a year’s worth of rent checks. They may also want paperwork from your property owner proving that you paid your rent on time. If you don’t have much credit history, your rental history is highly essential.

Verification of Employment

Lenders want to be sure they’re only lending to borrowers who have a steady job. A lender will want to see the buyer’s pay stubs and phone the employer to confirm employment and salary. If a buyer has just changed jobs, the lender may wish to contact the old employer. Self-employed buyers will have to produce a lot more paperwork about their business and income.

Verification of Credit

Though you won’t submit a copy of your credit reports, having your credit evaluated is an essential component of qualifying for a mortgage. Instead, the lender will likely ask for your permission to do a credit check on you.

You may need to explain any flaws on your credit report, according to Bruce Ailion, an Atlanta real estate agent. For example, a past short sale or foreclosure could be a blemish.

Foreclosure and Bankruptcy

If you have one of these on your credit history, ask your lender how long you’ll have to wait before re-entering the mortgage market. What do you need for a mortgage loan? The lender may request documentation that your obligations have been dismissed and are no longer outstanding if you file for bankruptcy. However, you may have to wait seven years after a foreclosure to be eligible for a new mortgage.

Documents of Additional Assets 

Due to the volatility of the financial markets, lenders may request updated evidence of any retirement, stock, or mutual funds needed to qualify for a mortgage right before closing to confirm the value.


Now, we are at the end of our topic, “What do you need for a mortgage loan?.” Following the submission of your application, a lot happens behind the scenes. We recognize how stressful the home buying and mortgage application process can be. Purchasing a home can be life’s most exciting and stressful experience. Finding a place to call home, on the other hand, makes it all worthwhile.

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