What Do I Need to
get Pre-Approved?
Mortgage Pre-approval Checklist
The first step in searching for your dream home is figuring out your budget. If you’re like most homebuyers, you’ll be using a mortgage to finance the purchase of your new home. Getting a mortgage isn’t complicated, but there is a fair amount of paperwork necessary to get pre-approved and start your home search off on the right foot. Here is a list to help you get everything you may need organized.
Identification
A driver’s license or state-issued ID card works best but any government issued ID should suffice. This is used by the mortgage broker to confirm that you are who you say you are.
Last Two Years of Federal Tax Returns
Tax returns demonstrate your income history and help support your ability to pay back your potential loan.
Last Two Years of W-2 / 1099 / K-1 Statements
These statements help corroborate the financial picture your tax returns paint.
Pay stubs Covering the Previous 30 Days
Your taxes and W-2s help the bank understand your financial past, your pay stubs help them understand the present.
P&L Statements (if you’re a business owner)
If your income depends on the operation of a business, the bank will want to support your pay stubs with profit & loss statements from any businesses you operate.
Asset Statements
Mortgage companies also want to get an idea of your current assets, including balances in checking and savings accounts, retirement/401k/IRA accounts, and any investment portfolios you have.
Copy of Current Mortgage Statement (if applicable)
If you’re already the owner of a home or property and have a current mortgage on it, your lender will want to review the documentation for that loan.
Copy of your Property Tax Statements (if applicable)
Like a mortgage statement, your property tax statements will help a lender determine your payment history and ability to take on debit.
There is no standard document requirement for the industry; different lenders may require different documentation at different phases of the home buying process.
General Advice For During The Home Buying Process
- Don’t make any unusual large purchases until after the purchase of your new home is complete without consulting with your lender first.
- Ask your chosen lender what service fees and other additional costs can be expected from the purchase a home and how much each are.
- Don’t open any new lines of credit during the home buying process. This includes new credit cards, personal loans, or leasing new cars.
- As with anything for sale, the “good deals” go fast so if you’re looking to get the most bang for your buck be ready and available to look at homes within the first day or two they are listed for sale.