What is typically required for a conventional loan?

For a conventional loan, full documentation of income and assets is typically required. This means that lenders will request comprehensive proof of the borrower’s ability to repay the loan, which often includes income statements such as pay stubs, W-2 forms, or tax returns, as well as documentation of assets like bank statements and investment records. Lenders use this information to assess the borrower's creditworthiness and financial stability, ensuring they can meet monthly mortgage payments.

While proof of military service can be a requirement for loans like VA loans, it is not necessary for conventional loans. A minimum credit score of 500 is too low for most conventional loan programs, which often look for a score of at least 620 or higher. Furthermore, while borrowers might agree to a fixed interest rate, this is not a requirement of a conventional loan, as these loans can also be offered with adjustable rates. Thus, the emphasis on full documentation of income and assets is a fundamental aspect of what lenders typically look for in conventional loan applications.