What Mortgage Underwriters Actually Look For in 2026 (And How to Prep Your File Early)

Underwriting, explained

Once you apply and you're pre-approved, underwriting is the step where a lender confirms:

• You can repay the loan (income + employment)

• You have the funds you claim (assets)

• Your debts and credit support the payment (DTI + credit)

• The property meets lending requirements (appraisal + title + insurance + condo/HOA if applicable)

Think of underwriting as a checklist. Delays usually come from missing documents or unclear transactions—not "bad luck."

If you're early in the process, understanding the difference between being pre-qualified and truly pre-approved can prevent issues later—especially in competitive South Florida markets.

1) Income: "Can we document it, and will it continue?"

Underwriters review:

• Pay stubs and W-2s (W-2 income)

• Tax returns + schedules (overtime/commission, multiple jobs, self-employed)

• 1099s, P&L, business returns (self-employed)

Real example: A buyer earns a base salary plus commission. The lender can't use the commission unless it's documented and consistent. That's why two years of history matters.

Prep tip: Gather your documents before you shop (ID, income, bank statements, and gift documentation if applicable). Buyers are often surprised to learn they don't need 20% down to start this process:

You Don't Need 20% Down to Buy a Home in South Florida.

2) Employment: "Is it stable and verifiable?"

In 2026, lenders still verify employment close to funding.

Underwriters are confirming not just that you're employed, but that your income is likely to continue for the next three years.

Common triggers for conditions:

• Job changes mid-transaction

• Gaps in employment

• Variable hours (hourly buyers)

Prep tip: Avoid changing jobs, switching to 1099, or starting a new business during escrow if you can.

3) Assets: "Where did the money come from?"

Underwriters confirm down payment and reserves using bank statements.

What causes the most conditions:

• Large deposits without a paper trail

• Cash deposits (hard to source)

• Transfers that aren't explained

Real example: A buyer deposits $4,000 cash from "savings at home." Underwriting may not accept it without documentation, which can delay or derail approval.

Prep tip: Keep a clean paper trail. If you're planning gift funds or want to understand how cash to close really breaks down in Florida, this guide helps set expectations early:

How Much Cash Do Florida Buyers Really Need in 2026?.

4) Credit + DTI: "Does the payment fit with your other obligations?"

Underwriters evaluate:

• Minimum payments on credit cards

• Auto, student, and personal loans

• Any alimony or child support (if applicable)

• Your full housing payment (principal, interest, taxes, insurance, HOA)

Watch this closely: Florida buyers often qualify on principal and interest, then fail underwriting when insurance, taxes, or HOA dues are added. That's why understanding the true cost of ownership matters before you commit:

The True Cost of Owning a Home in South Florida in 2026 (What Your Mortgage Doesn't Show).

Prep tip: Don't open new credit, finance furniture, or buy a car while your loan is in process.

5) The property: appraisal + title + Florida-specific hurdles

Even strong buyers can get delayed by property-related issues.

Appraisal

If the appraisal comes in low, it can create an appraisal gap and stall approval.

How to Protect Your Deal If Your Florida Home Appraises Low.

Insurance (big in Florida)

In Broward, Miami-Dade, and Palm Beach, insurance is often the wildcard that changes payments and escrows late in the process. Buyers who understand why Florida home insurance is so high tend to avoid last-minute surprises:

Why Florida Home Insurance Is So High, and How Buyers Can Navigate It.

HOA / condos

Condos and HOAs can require extra documentation (questionnaires, budgets, reserves). This is a frequent underwriting delay point for Florida buyers, especially post-SB 154, when reserve studies and structural requirements became stricter.

The "underwriting-proof" checklist (copy/paste)

This is the same checklist we use internally to submit clean files to underwriting.

Before you go under contract, aim to have:

• [ ] Last 30 days of pay stubs (or business docs if self-employed)

• [ ] Last 2 years of W-2s and/or tax returns

• [ ] 2 months bank statements (all pages)

• [ ] Clear paper trail for large deposits and transfers

• [ ] Gift funds documentation (if applicable)

• [ ] No new debt during the process

• [ ] Insurance quote strategy for the exact property type

• [ ] HOA/condo documentation plan (if buying in an association)

Next steps

If you want your file to feel "easy" to an underwriter in 2026, preparation beats last-minute scrambling.

• Get pre-approved in minutes: Start your application now

• Explore Florida homebuyer programs: You don't need 20% down

• Book a strategy call: Schedule a call

EZ Funding Group, Inc. NMLS #349022 | Jaime Charouf NMLS #348964 | Equal Housing Lender