What You Need to Get a House Loan from a Bank

Getting a house loan from a bank is one of the most common ways to finance the purchase of a new home. To get a house loan, however, banks require that you meet certain requirements, such as a down payment, proof of income and a decent credit score to evaluate you as a borrower. As long as you have the proper qualifications and you are a good financial risk, you are likely to get approved for a house loan even with today's low mortgage rates.

Proof of Income
Before being approved for a house loan, a lender is going to want to know that you have some form of income so you can make the mortgage payments. Whether you have a job or if you are self-employed, you will need verification. If you have a traditional job, your employer simply fills out a form provided by the bank or lender which includes information regarding the buyer's length of employment, their salary, any scheduled raises and other questions that can tell the lender if the buyer is a good credit risk. Self-employed buyers generally need to provide their tax returns for the previous two years and any current tax statements.

Bank Statements
If you have a checking and savings account, the bank or lender will generally want a copy of your statements for the last two months. This shows the lender that you pay your bills with your checking account rather than cash, which can be a red flag with many banks.

Tax Returns
Lenders will want to see your tax returns for previous years. The number of years you will need depends on the mortgage company. Some require three or more years of previous tax returns while others may only require the returns from the previous year. Ask your lender to find out how many years they require.

Credit Score
As of January 20, 2010, the U.S. Department of Housing and Urban Development announced that new borrowers need a credit score of at least 580 in order to qualify for the Federal Housing Association's 3.5 percent down payment program. If a new borrower has a FICO score below 580, they will have to put at least a 10 percent down payment on a home before they will be considered for a home mortgage. The new regulations are expected to go into effect in the early summer of 2010. Banks, on the other hand, may require a higher credit score if your mortgage is not backed by the federal government. Acceptable credit scores can vary between banks so shop around to find one willing to approve you for a mortgage based on your credit score.