The four basic requirements that your mortgage loan application must meet are:

• Collateral
  The property to be purchased or that is offered as security must be used for legal purposes. Appraisal value of the property must be adequate to justify the amount of the requested loan.
• Re-payment Capacity
  Steady and verifiable income must be adequate to cover monthly loan payments, as well as the payment of other debts and obligations of the applicant. Steady income is verifiable gross income that shall be received during the next three years. Income will be verified in accordance with the applicable financing program.
• Ability to Re-pay Debt
  Your good credit history is the best reference of your ability to pay. The most important credit references are those related to your housing, auto, and revolving accounts.
• Closing Funds
  You must have enough funds available to cover the down payment and closing fees that will not be paid with loan proceeds. Some financing programs may require savings reserves equivalent to two monthly installments of the requested loan. The amount of these funds and their sources will be verified. Among the acceptable sources are savings in bank accounts, gifts from close relatives, sale of assets, 401k, and IRA plans.