In the United States, homebuyers apply for mortgages based on multiple considerations, primarily to alleviate financial pressure and align with personal financial planning. According to relevant laws and regulations, lenders typically scrutinize various financial indicators to ensure loan applications are approved. To meet basic requirements and improve approval chances, applicants should pay attention to several key factors during the mortgage application process.

1. The Necessity of Stable Income

As stipulated by the Department of Housing and Urban Development (HUD), stable income is lenders' primary consideration when evaluating applicants. Borrowers should submit proof of income from the past two years, including but not limited to tax returns (W-2 forms), pay stubs, and detailed explanations for any employment gaps. Lenders use these documents to assess income sources, consistency, and job stability.

2. Strong Credit Score

In the US, credit evaluation is a crucial tool for financial institutions to assess borrowers' risk. According to Consumer Financial Protection Bureau (CFPB) statistics, applicants typically need a credit score of at least 720 to qualify for the most favorable interest rates and terms. While 580 is considered the minimum threshold, applicants below this score face stricter scrutiny and less advantageous terms. Lenders examine credit history including credit card usage, loan repayment records, and any delinquencies.

3. The Importance of Low Debt-to-Income Ratio

Debt obligations are another critical factor in mortgage applications. Federal Housing Administration (FHA) guidelines recommend maintaining a low debt-to-income ratio (DTI), with total monthly debt payments ideally not exceeding 10% of monthly income. Excessive debt negatively impacts lenders' confidence in repayment ability and can affect approval decisions.

4. Asset Verification Requirements

Lenders also evaluate applicants' assets, particularly their ability to cover down payments, closing costs, and monthly mortgage payments. Financial regulations require strict verification of assets, which should remain in accounts for at least two months to demonstrate financial stability. Typically, a down payment of at least 20% of the home's value is recommended to show financial capability and commitment.

To summarize, mortgage applicants should meet these four fundamental requirements:

• Maintain a credit score above 720 to demonstrate creditworthiness
• Provide at least 20% down payment to show financial capacity
• Keep debt-to-income ratio at manageable levels
• Demonstrate stable income with complete financial documentation

Meeting these criteria significantly improves approval odds. Additionally, applicants should monitor market trends, interest rate changes, and relevant terms to make informed financial decisions. When encountering unclear legal provisions, consulting mortgage specialists or legal professionals is advised to ensure compliance and protect one's rights during the homebuying process.