: Lenders need to verify you have a steady cash flow to cover mortgage payments. W-2 statements from the past two years. Recent pay stubs (usually covering the last 30 days).
: Much of the heavy lifting regarding your finances is done upfront, leading to a smoother final underwriting process. Common Pitfalls to Avoid
: In competitive markets, sellers often won't even look at an offer unless it's accompanied by a pre-approval letter.
if a family member is providing funds to help with the purchase.
: Lenders look for a DTI ratio typically below 43% , meaning your monthly debts shouldn't exceed 43% of your gross monthly income.
for the past two years, especially if you are self-employed or have rental income.
: You must prove you have the funds for a down payment and closing costs.
