Getting ready to buy a home? 🏡 

Getting pre-approved for a mortgage is an important first step in the home-buying process. It shows sellers you are serious and gives you a clear idea of your budget.

To streamline the process, gather these five key documents your lender will require. Make sure to have these essential documents ready to make the pre-approval process smooth and quick.

These documents are needed to get a full picture of your financial situation, and once reviewed—along with a credit check—you will receive a pre-approval letter telling you how much you can borrow.

W-2 Forms

Your W-2 forms from the past two years provide proof of income and employment. Lenders use this information to assess your earning stability and verify that you have a consistent source of income.

Tip: If you are self-employed, you will need 1099 forms and additional documentation, such as a profit-and-loss statement.

Tax Returns

Lenders may ask for your federal tax returns from the last two years. These documents give a comprehensive picture of your financial situation, including any additional income or deductions that could impact your loan eligibility.

Tip:  Be sure your tax returns are signed and match the income figures on your W-2s or 1099s.

Bank Statements

Your bank statements from the past two to three months help lenders verify that you have sufficient funds for a down payment, closing costs, and reserves. They also show your spending habits and ensure there are no large, unexplained deposits or withdrawals.

Tip:  Keep your accounts stable during the mortgage process to avoid raising red flags.

List of Monthly Debts

Lenders need a detailed list of your monthly debt obligations, such as car loans, student loans, and credit card payments. This helps calculate your debt-to-income (DTI) ratio, which is crucial in determining how much you can borrow.

Tip:  Reducing your debt before applying for pre-approval can improve your chances of getting a favorable loan.

Pay Stubs

Your most recent pay stubs (typically from the last 30 days) verify your current income and employment. These are critical for ensuring your financial situation aligns with what’s shown on your W-2s and bank statements.

Tip:  Notify your lender immediately if there are any changes to your employment during the approval process.

Final Thoughts

Being prepared with these five documents will make your mortgage pre-approval process smoother and quicker. Staying organized and transparent with your lender ensures you are one step closer to owning your dream home. Towards that end, when you are ready, let's connect and we will help you begin your homebuying adventure.

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