Tips for Getting Your Mortgage Approved


When you start to think about buying a home, you need to think about what you’ll need to get approved for a mortgage. You can’t just walk into a bank and ask to borrow $100K; you need to prove that you are trustworthy, stable, and can pay back the loan without going broke. Here’s what you’ll need to get approved fast.

Great Credit

This one’s obvious. If you want to get a good mortgage with the best interest rates, then you want a score of 720 or higher. It could save you thousands of dollars over the course of your life. Federal Housing Administration loan (also known as, FHA loan) guidelines have become more strict as well. Borrowers with credit scores below 580 are required to have a larger down payment on their homes.

Money Down

This not only makes you more trustworthy, it makes you sensible. It is a very good idea to put down as much money as possible, and as soon as possible. Not only does a larger down payment make you a more dependable borrower in the eyes of the bank, but it also saves you money in the long run. The bank is responsible for less money in the event that you default, thus they are more willing to lend you money. Furthermore, a larger down payment on your home means that you pay less in interest and (hopefully) avoid paying for Private Mortgage Insurance (PMI).

Cash on Hand

Keep your finances healthy. Make sure that you have a healthy emergency fund after closing on your home costs and all other expenses are paid. This is a good way to let the bank see that you won’t be broke after your home purchase and ensures that you won’t default early in their loan term. These funds should be liquid and available after you close, preferably in a checking, savings, or money market account.

Confirmed and Continuous Employment

Being employed is just as important as your credit score. Lenders want to see that you’re financially stable. The longer you’ve been at your job, the better. If you’re self employed, you’ll need to be ready to show all financial proof required to get a mortgage loan. Most lenders will prefer continuous employment and will want to see at least two years of tax returns.


To get approved for a mortgage, you’ll need to prove who you are, what you’re worth and what you’re financially capable of. This is a list of documents you’ll need:

1. Social Security Numbers and Birth Dates for all borrowers
2. 24 Month Residence History
3. 24 Month Employment History
4. Copies of pay stubs for the last 60 days
5. Copies of W-2 Forms for the last two years
6. Bank Statements and investments for the last 2-3 months
7. Evidence of Homeowners insurance
8. Address of the property you are purchasing
9. Purchase agreement or title documentation
10. Copies of tax returns for the last two years

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One comment on “Tips for Getting Your Mortgage Approved”

  1. Amanda Drew says:

    I like how you point out that putting more money down initially will make you look better to the lender and will also help you save money overall. My husband and I want to get a new home that will be big enough for our growing family (we have two kids so far and are expecting one more). We’ll have to see how much we could afford to put as a down payment and go from there to get a good mortgage and get a nice home.

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