Applying for a Mortgage? You'll Need These Documents For Pre-Approval


Applying for a Mortgage? You’ll Need These Documents For Pre-Approval

Posted by : Admin

If you’re planning on buying a house, getting pre-approved for a mortgage is one of the first things to do. A pre-approval proves to the seller you can afford the house. It also shows you’re serious and may give you an advantage during negotiations.

Getting pre-approved for a mortgage isn’t difficult, but the loan officer will need to see several personal documents to make it happen. Gather these pieces of information and be sure to share them with your lender during the process.

Driver’s License

Identity theft remains a big issue in general, so lenders must be able to verify your identity. Your driver’s license backs up your claim that you are who you say.

Social Security Card

As with your license, your Social Security Card offers proof of your identity. Verifying your Social Security Number helps lenders prevent mortgage fraud.

Tax Returns

Dig up the past two years of your tax returns. These help prove you have stable work history (hopefully with the same employer) and an income that can support a monthly mortgage loan payment.

If you can’t locate your tax returns, contact your accountant for a copy.

Pay Stubs

While tax returns show your work history, they don’t help lenders know if you’re still employed at the same pay rate. Gather your last pay stubs to show the lender you still have a job and are still bringing home a steady income.

Checking and Savings Statements

Assets help you look financially stable and contribute to getting pre-approved for a mortgage loan. These funds also prove you can cover closing costs. Send your lender recent copies of your checking and savings account statements.

Stock and Investment Statements

If you have investment accounts with stocks and/or mutual funds, make a copy of your most recent statement and share it with your loan officer. These statements give even more evidence you’ll be able to responsibly handle a mortgage loan.

Rental History Letter

Ask your landlord to write a letter of reference. This should include how long you’ve lived at the property, how much you paid in rent, and how many months you were late. A positive report from your landlord helps prove you take your financial obligations seriously, and you’ll be on time with your monthly payments.

Gift Letter

If your parents (or anyone else) are gifting you with money to use toward your home purchase, go ahead and include a letter from them in your pre-approval documents.

If You’re Self-Employed … Profit and Loss Statement

A profit and loss statement shows that you are making an income that can support a mortgage loan.

Whether you need a first-time homebuyer loan, a traditional loan, or a jumbo loan, it pays to get your important documents together in advance. It will save you from stressing out when it’s crunch time.

Need to get pre-approved? Contact MIG today to start the process and be on your way to a new home.