Whether this is your first or tenth home purchase, shopping for a new home is…
How to Get Preapproved for a Mortgage
What exactly do you need to provide for a pre-approval? I have made a checklist for you!
1. Financial Documentation:
- Pay stubs: Gather your recent pay stubs covering the last 30 days.
- W-2 forms: Provide your W-2 forms for the last two years.
- Two months of bank statements.
- Proof of additional income: Include documentation for any additional income sources (e.g., bonuses, alimony, rental income).
2. Employment Verification:
- Employment history: Be prepared to provide a detailed employment history for the last two years.
- Employer contact information: Provide names and contact information for your current and previous employers.
3. Credit Information:
- Credit report: Be aware of your credit score and review your credit report for any discrepancies.
- Explanation for any issues: If there are any negative items on your credit report, be ready to explain them.
- Debt information: Provide details on any outstanding loans or debts, such as car loans or student loans.
5. Down Payment Information:
- Source of down payment: Clearly outline the source of your down payment funds (e.g., savings, gift from a relative).
- You CANNOT use cash as acceptable source of down payment.
6. Property Information:
- Property details: If you have a specific property in mind, provide information about it, including the address and purchase price.
7. Miscellaneous:
- Gift letters: If your down payment includes gift funds, obtain a gift letter from the donor.
- Divorce decree: If applicable, provide a copy of your divorce decree.
8. **Pre-Approval Application:**
- Complete the pre-approval application form provided by your lender.
- Submit all required documents promptly to expedite the pre-approval process.
Remember, this checklist serves as a general guide, and specific requirements may vary among lenders. It’s always a good idea to consult with your loan officer to ensure you have all the necessary documentation for a smooth pre-approval process.