What is commonly required by lenders before approving a mortgage?

Lenders typically require a credit report and income verification as part of the mortgage approval process because these two elements are critical in assessing the borrower's creditworthiness and ability to repay the loan.

The credit report provides lenders with insights into the borrower's credit history, including outstanding debts, payment history, length of credit history, and any bankruptcies or defaults. This information helps lenders evaluate the risk associated with lending to the borrower.

Income verification, on the other hand, assures lenders that the borrower has adequate and stable income to make the monthly mortgage payments. This may involve checking pay stubs, W-2 forms, tax returns, or other documentation to confirm the borrower's earnings.

Together, these factors help lenders make informed decisions about approving a mortgage application.