Common Documents Required For A Mortgage Pre-Approval

Even though many lenders are still quoting quick 10 minute pre-qualifications over the phone or online, a true mortgage approval that holds any weight is one that has been issued by an underwriter who has had an opportunity to review all of the necessary documents.

With a constant stream of new lending guidelines, volatile mortgage rates and tightening regulation from Washington, very few real estate agents will show new homes to a First-Time Home Buyer without at least a pre-qualification letter.

A Pre-Approval Letter will help you in three ways:

It’s obviously a good idea to get your paperwork prepared ahead of time so that the pre-approval process is as thorough as possible.

In order to get a pre-approval letter, you’ll start by filling out a loan application and submitting a few documents for the loan officer and / or underwriter to review.

Common Loan Pre-Approval Documents:

Income / Assets for Wage Earner:

  • Last 2 year W2s and Tax Returns
  • 2 most recent Pay Stubs
  • 2 most recent Bank Statements, 401(K), Liquid Assets, Investment Accounts

Income / Assets for Self-Employed:

  • Last 2 year Tax Returns – Business and Personal
  • Last Quarter P&L Statement

Letter of Explanation For:

  • Employment Gap or New Line of Work
  • Late Payments / Judgments / Bankruptcy on Credit Report

Other:

  • Bankruptcy Discharge
  • Child Support Documentation
  • Lease Agreements (If own other Rental Properties)
  • Mortgage Payment Coupons (If own other Real Estate)

…..

Most borrowers also want an opportunity to learn more about the loan officer before digging up all of these personal documents. Spend 15 minutes on the phone asking the loan officer to explain how mortgage rates work, quizzing them on some basic industry vocab or just to see if they know what to prepare your agent for ahead of time. The Q&A session can be more than just a lender qualifying you, as long as you’re prepared to ask the right questions.

Either way, you’ll definitely want to have the above list of approval documents ready once you’ve decided on the right loan officer that you trust will meet your expectations.

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March 28, 2010 by · Leave a Comment

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About Rick

Rick Wamsley has been in the mortgage industry for over 15 years as both a branch manager and loan officer positions. He is very knowledgeable in all residential mortgage programs. As a former multi-million dollar real estate agent he will confidently handle your loan to make sure that all goes smooth. No matter where you are in your mortgage needs Rick will take time to make sure you have the very best mortgage. If you're looking to purchase a home but don't know where to start, then Rick is your first step. He will guide you through the process with ease and make your dreams of home ownership come true. He loves spending time with his family and encourages all people to strive for a life with no limits. His wonderful personality coupled with years of experience will make your mortgage experience one to remember and share with others. NMLS 166874 and TN license 110733

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