What does a lender typically require during the mortgage application process?

During the mortgage application process, a lender typically requires proof of income and credit history to assess the borrower’s financial stability and ability to repay the loan. This information includes pay stubs, tax returns, and documentation related to other income sources, which together help the lender evaluate the borrower’s debt-to-income ratio and overall creditworthiness.

Credit history, which is usually retrieved from credit reports, provides insights into how reliably the borrower has managed past debts. Lenders use this data to make informed decisions about the risk involved in loaning money to the applicant. A strong credit history and stable income enhance the chances of loan approval and favorable interest rates.

While things like a thorough inspection report, homeowner’s insurance documentation, and a list of previous addresses may also be relevant in the home-buying process, they are not typically required during the initial mortgage application phase. The application primarily focuses on verifying the borrower’s financial profile to ensure they are qualified for the loan.