What Lenders Look For: Your Mortgage Application Checklist

Applying for a mortgage can feel overwhelming—especially when you’re unsure what lenders are actually looking for. Whether you’re buying your first home or upgrading to your next, understanding how your application is assessed will help you prepare, avoid delays, and increase your chances of approval.

At Continental Mortgage, we believe that clarity is key. Here’s a simple breakdown of what matters most—and what you can do to get mortgage-ready.

1. Your Income and Employment Stability

Lenders want to know that you have a steady, reliable source of income to make your mortgage payments on time. You’ll typically be asked to provide recent pay stubs, employment letters, or tax returns if you’re self-employed.

If you’re self-employed or have variable income, don’t worry—there are many lender programs designed specifically for you. The key is showing consistent income patterns and keeping organized financial documentation.

2. Your Credit Score and History

Your credit score is one of the biggest indicators of how you manage debt. A higher score tells lenders you’re a responsible borrower, which can lead to better rates and terms.

If your credit isn’t perfect, that doesn’t mean you’re out of options. Our team works with lenders who offer flexible solutions for clients rebuilding credit, and we’ll guide you on simple steps to strengthen your profile before applying.

3. Your Down Payment and Savings

Your down payment shows lenders you’re financially invested in the property. Depending on the type of mortgage, you’ll need at least 5% of the purchase price for a home under $500,000. You’ll also need to show where the funds came from—such as savings, a gift, or investments—so be ready with documentation.

Having additional savings (known as “reserves”) can also strengthen your application by showing you can handle future expenses like maintenance or emergencies.

4. Your Debt-to-Income Ratio

Lenders calculate how much of your income goes toward debt payments each month. This includes car loans, credit cards, and other obligations. Keeping this ratio low—ideally under 40%—shows you can comfortably manage your mortgage on top of your other responsibilities.

If your ratio is high, we can help you explore strategies like debt consolidation or adjusting your loan amount to improve approval odds.

5. The Property Itself

Finally, lenders will assess the property you’re buying. They’ll look at its appraised value, location, and condition to ensure it’s a sound investment. A well-maintained home in a stable area helps strengthen your application.

Getting approved for a mortgage isn’t just about meeting a checklist—it’s about showing lenders that your financial plan is strong and sustainable.

At Continental Mortgage, we help you organize your documents, strengthen your profile, and present your application in the best possible light. With over 22 years of experience and access to 200+ lenders, we make the process smooth, transparent, and tailored to your goals.