Mortgage Approval Made Simple: What You Need to Know

If you're ready to buy a home, the first hurdle is getting the mortgage approved. It can feel like a maze, but breaking it down into small steps makes it manageable. Below we cover the basics, the paperwork you’ll need, and practical tricks to improve your odds.

What Lenders Look At

Every lender checks three main things: credit score, income stability, and debt‑to‑income ratio (DTI). A higher credit score shows you pay bills on time, which lowers the lender’s risk. Steady income—whether from a salary, freelance work, or rental properties—proves you can handle monthly payments. DTI compares all your monthly debts to your gross income; most lenders want it under 43%.

Besides those numbers, lenders will ask for a down payment. The bigger the down payment, the less you borrow, and the easier the approval. A 20% down payment is ideal, but many programs accept 3% to 5% if you qualify.

Gather the Right Documents Early

Having the right paperwork ready speeds up the process. Common items include:

• Recent pay stubs (last 30 days)
• Two years of tax returns
• Bank statements showing reserves
• Proof of any additional income (bonuses, rentals)
• Identification (driver’s license, Social Security)

Ask your lender for a checklist so you don’t miss anything. When you submit a complete packet, the underwriter can move quickly.

One quick tip: keep your account balances stable during the approval period. Large deposits or withdrawals can raise questions, and you might need to explain them.

Another common mistake is changing jobs right before or during the application. Lenders like to see at least six months of steady employment. If you must switch, talk to the lender first; some programs allow a job change if the new role is similar and the income is stable.

Once the underwriter reviews everything, they’ll issue a conditional approval. This means you’re approved if you meet a few more requirements—usually a final appraisal and proof of insurance. After those steps, you get a clear-to-close, and the loan can be funded.

Want to speed up the process? Consider getting pre‑approved. A pre‑approval shows sellers you’re serious and gives you a clear idea of how much you can borrow. It’s not a guarantee, but it puts you ahead of buyers who wait until they find a home to start the paperwork.

Finally, stay in touch with your loan officer. Answer any requests promptly, and keep an eye on your email for updates. A smooth line of communication can shave days off the timeline.

Mortgage approval doesn’t have to be a headache. By knowing what lenders check, having the right documents, and keeping your finances steady, you’ll move from dreaming about a home to actually owning one. Ready to start? Grab the checklist, check your credit, and take the first step toward approval today.