What is typically required from a borrower applying for a mortgage?

When a borrower applies for a mortgage, one of the key requirements is providing employment verification and proof of income. This documentation serves several important functions in the mortgage application process. It allows lenders to assess the borrower's ability to repay the loan by confirming their income level and job stability. Lenders typically request recent pay stubs, W-2 forms, or tax returns to verify the borrower’s financial health and ensure they have a consistent source of income.

While credit score also plays a significant role in the underwriting process, it alone does not provide a complete picture of a borrower's financial situation. Evidence of income and employment offers a broader understanding of the borrower’s capacity to manage monthly mortgage payments.

A co-signer may be required in certain situations, particularly if the primary borrower has poor credit or insufficient income; however, this is not a universal requirement and often depends on the specifics of the borrower’s financial profile. Similarly, approval from a real estate agent is not a necessity for mortgage applications, as the role of the agent is separate from the financial qualification process undertaken by lenders. Thus, employment verification and proof of income is a standard requirement that ensures a thorough evaluation of a borrower’s capability to secure a mortgage.