Working with a Mortgage Lender: Everything To Know

Thinking about buying a home in Pittsburgh? Working with a mortgage lender is one of the first and most important steps in the process. This guide breaks down what you need to know about mortgage applications, lender requirements, and how to prepare your finances so you're ready to secure a home loan with confidence.

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To qualify for a mortgage loan, you'll need to complete an application that paints a full picture of your finances. Working closely with a mortgage lender can make this process feel less overwhelming and a lot more manageable.

Your mortgage application includes details like your income, debts, and the price of the home you want to buy. Lenders use this info to determine if you qualify.

Because of the Federal National Mortgage Association—better known as Fannie Mae—the application process follows a standard format across most lenders. That means whether you're applying with a big bank or a local mortgage broker, the core requirements will look pretty similar.

Lender Requirements

In addition to the application itself, lenders typically require:

Property Survey

A property survey or surveyor’s drawing that outlines the land and any structures on it. In many cases, the lender takes care of arranging this during the loan process. They'll hire a licensed surveyor, and the cost is usually included in your closing costs or added to your loan amount.

Application & Origination Fees

Most lenders charge fees for processing the application and originating the loan. This might include an appraisal fee, among other charges. These can vary quite a bit, so make sure to ask your lender for a breakdown of what’s included.

Private Mortgage Insurance (PMI)

If your down payment is less than 20% of the home’s price, your lender will likely require PMI. This insurance helps protect the lender in case of default. It’s a standard requirement—but it can often be removed later once you build enough equity.

The Mortgage Application

A mortgage application helps lenders assess your creditworthiness and decide whether to approve your loan. It can feel like a lot of paperwork, but staying organized will make it easier—and can even improve your chances of approval.

Here’s a breakdown of what the application usually includes:

Details of Purchase

How much you plan to borrow, the amount of your down payment (if applicable), and the source of the remaining funds.

Monthly Income

This includes your job salary, but also any consistent non-salary income like rental payments, alimony, or investment returns. You’ll need documentation that shows this income is regular and reliable.

Job Information

If you’re traditionally employed, you’ll usually need verification from your employer. If you’re self-employed, be ready to provide more detailed income documentation like tax returns or profit and loss statements.

Monthly Housing Expenses

This includes your current housing costs, plus expected expenses for the new home—like property taxes, utilities, and homeowners insurance.

Credit History

Lenders will review your credit report, current debts, and any red flags such as bankruptcy or legal claims. This is a major factor in how your creditworthiness is evaluated.

Net Worth

This is your total assets minus your total debts. You’ll need to list your cash, bank accounts, retirement funds, real estate, and other investments. You’ll also need to disclose liabilities such as loans, credit card balances, alimony, and child support.

Finding a Lender

If one lender turns you down, don’t be discouraged. While the core application is the same, lenders may weigh certain details differently. One might say no, while another sees your profile as a fit.

Online options are plentiful, but sometimes meeting face to face with a lender is best.

If you’re not sure where to start—or want backup options—I can connect you with a trusted local lender or mortgage broker who knows how to navigate Pittsburgh’s housing market.

And if you’re feeling unsure about monthly payments, talk to your lender early. They might be able to offer solutions like a smaller loan amount or a different structure that better fits your budget.