The Essentials: Checklist for getting your mortgage Pre-Approval

Navigating the mortgage pre-approval process can be your first step towards homeownership. A pre-approval letter from your lender shows sellers that you are a serious and capable buyer. To streamline this process, you'll need to gather a variety of documents that prove your financial stability and readiness to buy a home. Here’s a detailed checklist of what you’ll need to provide for your mortgage pre-approval.

1. Proof of Income

Your income is a crucial factor in determining how much you can borrow. To verify your income, you will need:

• Most Recent Pay Stubs: Provide pay stubs covering the last 30 days to show your current earnings.

• W-2 Forms: Submit your W-2 forms from the past two years to demonstrate a history of employment and earnings.

• Tax Returns: If you are self-employed or receive income as a 1099 contractor, you’ll need to provide tax returns from the last two years to verify your income.

• If you have more than 1 employer in the previous 2 years, make sure you have a detailed 2 year employment history with Names, Dates, Job Titles, etc.

2. Proof of Assets

Lenders will review your assets to ensure you have the funds for a down payment and cash reserves:

• Bank Statements: Provide statements from the last two months for all your checking and savings accounts.

• Retirement Accounts: If applicable, include the most recent statements (covering the last two months) for any retirement accounts.

• Make sure you are keeping your cash in the bank. Any large deposits will need to be sourced.

3. Credit Report

Your credit history is a vital part of the pre-approval process:

• Credit Check: I will conduct a credit check to assess your creditworthiness. Your credit report is generally valid for 90 days.

• Explanation Letters: You may need to provide letters explaining any unusual inquiries, name variations, or address discrepancies noted in your credit report.

• Make sure to continue to make all payments on-time. Do not take out new credit or inquire on taking out new credit until after you have closed on your home.

4. Additional Documentation

Depending on your situation, you may need to provide further documentation:

• Photo ID: A valid government-issued photo ID (e.g., driver’s license or passport) is required to verify your identity.

• Property Ownership: If you own other properties, list them along with any associated mortgage details.

• Business Documents: For business owners, provide recent business tax returns with all schedules, and a year-to-date Profit and Loss statement.

• Current Lease: If you’re renting, your current lease may be required to show your rental history and payments.

Gathering these documents before you start your home buying journey can significantly ease the process of getting pre-approved for a mortgage. Being prepared not only helps expedite the pre-approval process but also positions you as a dependable buyer in the competitive real estate market.

Remember, the more organized and thorough you are with your documentation, the smoother your path to homeownership will be. If you have any questions or need assistance gathering the necessary paperwork, feel free to reach out. Let’s get you one step closer to holding the keys to your new home! #angieandersonmlo