Credit and Mortgage Readiness
Learning Center Stage 2 — Prepare Your Credit and Finances
Lenders judge risk, and your credit, income, and paperwork are the three things they'll scrutinize most closely. Your credit report and score are the first things reviewed, so it's worth pulling your reports from all three bureaus early, checking for errors, and disputing anything inaccurate in writing — improvements take time, so start months ahead of when you plan to apply.
Lenders also want to see stable, verifiable income. Expect to provide two years of W-2s and tax returns, recent pay stubs, and bank statements. If you're self-employed or rely on variable income, expect closer scrutiny and be ready to show consistency over time.
Your existing debts matter too — lenders calculate a debt-to-income ratio to judge affordability, so paying down high-interest balances before applying can improve both your approval odds and your rate. Start a document folder now: tax returns, pay stubs, bank statements, and ID. Having these ready early prevents last-minute scrambles later.