What does requalifying for a loan typically involve for a borrower?

Requalifying for a loan primarily involves providing proof of income to demonstrate the borrower's current financial situation. Lenders require borrowers to verify their income through documentation such as pay stubs, tax returns, or bank statements. This step is crucial because it helps lenders assess the borrower's ability to repay the loan with their existing earnings.

While other factors like credit score, loan terms with a new lender, and asset documentation may also come into play during the requalification process, confirming income stands out as a fundamental requirement. It directly impacts the determination of a borrower's financial stability and overall creditworthiness.