Mortgage Pre-Qualification Checklist
The first step in the mortgage application process is pre-qualification. We can help you with that.
Simply, a mortgage loan pre-qualification is an estimate to decide the value for the house you can afford based on your employment history, credit rating, savings and assets, proposed down payment, and debt-to-income ratio.
It is important to provide accurate information as the pre-qualification letter is solely based on the information you provide. Depending on your unique financial situation, here a checklist of documents that you might need when
applying for a home loan.
Proof of Income
Lenders require to see your pay stubs from the most recent month. Your tax returns help give
them a clear idea of your overall financial health, while pay stubs help them meter your current
- Last 2 years of W2 forms
- Paystubs from the past 30 days
- If you’re self-employed, we’ll need your last 2 years of personal and business tax returns
- Proof for any other additional income If you are renting, a year’s worth of canceled rent checks
Savings and Assets
When assessing your risk profile, lenders may want to look at your bank statements and other assets to make sure you have several months’ worth of reserve mortgage payments in your account in case of an emergency. Our advice is to save as much money as you can and to cut back on expenses and pocket that extra cash.
- Most 2 recent months of bank statement
- Information on any real estate you already own
In order to assess you as a borrower, lenders often pull your credit report — with your verbal or written permission. Our advice is that you be careful with your credit; i.e. don’t make any large purchases or apply for a new credit card when you are planning to apply for a loan.
- Credit Report
Most likely you are required to provide a photo ID, such as your drivers license or passport
simply to prove you are who you are claiming to be.
- Drivers License or Passport
Your parents or friends might be helping you out with your purchase by giving you money. In
that case you will need a written confirmation that the money is in fact a gift and it should also
state the relationship together with the amount.
- Gift letter
Having this information ready will make the pre-approval process so much easier and will make the underwriting process much simpler when you find your new home.
Additional documentation may be required upon review, however, this will give us a great start, and you will be one step closer to owning your new home. Talk to us today! or Click here to submit your interest and one of our representatives will get in touch with you within 48 hours.