Before you start thinking about paint colors and patio furniture, let’s talk about something way less fun but absolutely crucial: getting pre-approved for a mortgage.
I truly will never understand why people think they have to start mindlessly scrolling for homes on Zillow first, without knowing what they can even qualify for.
Anyways, getting a mortgage pre-approval involves gathering a bunch of documents, but don’t worry—it’s my job to break it down as easy as possible.
The Must-Have Documents for a mortgage pre-approval
Getting pre-approved isn’t as simple as pinky promising you’re good for the money. Lenders want proof, and here’s the scoop on what you’ll need to gather:
Proof of Income
This one’s a no-brainer. Lenders want to see that you have a steady income whether you are an employee, a business owner or a retiree.
These are the items you’ll need for the most common situations:
You are employed by a company and are a salaried or hourly employee
- Your most recent pay stubs covering at least 30 days of income.
- W-2 forms for the past two years to verify your employment history, earnings and tax deductions.
You are self-employed
- Two years of personal and business tax returns.
- Year-to-date profit-and-loss statement and balance sheet
You have rental income
- Signed leases from your tenants and proof of deposit for the first month’s rent and security deposit
- Schedule E of your most recent 2 years of federal tax returns showing the rental income
You are retired or receive disability income
- Award letter for your retirement or disability income and proof of receipt (such as a bank statement).
- 401(k) or mutual fund statements showing the value of your retirement assets and showing amount of your distribution
2. Proof of Assets
Lenders want to see that you have enough cash on hand to cover your down payment, closing costs and in some cases, at least two months’ worth of mortgage payments. These are the most commonly requested documents:
- Bank statements from all financial accounts for the last 2-3 months
- Investment account statements, including stocks, bonds, mutual funds and/or any other securities
- Retirement account statements such as 401(k) or IRA showing current balance
3. Proof of Identification
Lenders want to make sure you are who you say you are before lending you hundreds of thousands of dollars. These are the forms of identification you’ll need to provide:
- Copy of driver’s license or other government-issued photo ID
- Social security card
4. Proof of Residence
For certain programs, proof of residence is required showing where you live and how long you’ve been there, so be prepared to provide these documents:
- Copies of utility bills, such as water and electricity, from the past month
- Copy of your current lease or mortgage statement to show your current address and history of payments
Additional Documents You May Need
Depending on your unique situation, you may be asked to provide additional documents. These could include:
- Divorce decree or separation agreement if applicable
- Child support or alimony payment documentation
- Bankruptcy or foreclosure documentation, if applicable
- Gift letters for any money received from friends or family to help with your down payment
Remember, It's Worth the Effort
Gathering all of these documents isn’t fun at all but guess what? It’s needed and the sooner you do it, the easier it will be to get your loan approved.
Trust me, it’s way more fun to take care of the boring stuff up front rather than be scrambling around looking for documents when you are dealing with an underwriter.
Get pre-approved for a mortgage with Andes Mortgage LLC
As a mortgage broker in Georgia, Andes Mortgage LLC can help you get pre-approved for your home loan.
We make the whole experience as simple as possible for you, whether you are a first-time homebuyer or if you’ve got experience under your belt.
To see what is the best fit for you, give us a call at 770-740-4050 to speak with one of our experienced Mortgage Advisors.
