What are the requirements for a mortgage application?

When applying for a mortgage with Comerica Inc., there are several key requirements that potential borrowers should be aware of. First and foremost, the applicant's credit history and credit score are critically important factors. Lenders typically examine the applicant's credit report to assess their creditworthiness and determine if they have a history of managing debt responsibly. Income verification is another essential component of the mortgage application process. Applicants usually need to provide proof of income, which may include recent pay stubs, tax returns, and other documentation that confirms their ability to repay the loan. Lenders will look at both the applicant's gross income and any additional sources of income, such as rental income or bonuses. In addition to credit and income, lenders also consider the applicant's debt-to-income (DTI) ratio. This ratio measures the total monthly debt payments in relation to gross monthly income. Most lenders prefer a DTI ratio below a certain threshold, commonly around 43 percent, though different lenders may have different requirements. Furthermore, a down payment is required for most mortgage loans. The amount can vary depending on the loan type and lender policies. A higher down payment can sometimes lead to more favorable loan terms. Lastly, applicants may need to provide personal information, such as identification, Social Security number, and details of the property being financed. It is beneficial for borrowers to gather all necessary documents ahead of time to ensure a smoother application process. For complete and up-to-date information regarding specific documents or requirements for a mortgage application, interested individuals may wish to consult Comerica’s official website or refer to the mortgage section. This will provide the latest information about the requirements and guidelines for obtaining a mortgage through Comerica Inc.