What You’ll Need for a Pre-Approval
ryan | September 5, 2017
What You'll Need for a Pre-Approval: Pre-approval Requirements
The Documents You’ll Need for your Pre-approval
Do you still have your old collection of vinyl records? Over the years, vinyl has been making a comeback for audiophiles everywhere. While studios today digitally record a performer’s music, there’s something special about the sound coming from a vinyl record.
For those that do appreciate vinyl records, you remember how the record slipped out of the sleeve. You carefully held the record by its edges and looked at the list of songs appearing on the record label.
When you prepare for a mortgage preapproval, you too will receive a list of items you’ll need to provide the mortgage company before a preapproval can be issued. What are those items?
Pre-approval Requirement #1 Income Documentation.
Typically a borrower will provide documentation of gross monthly income. Document your income by providing the most recent paycheck stubs. You’ll need to have documented at least 30 days of income. You can also expect to provide your two most recent W2 forms.
Self employed? If so, you’ll need to provide federal income tax returns from the previous two years. Also, you'll need to include a year-to-date profit and loss statement. This P&L is typically something you can do on your own but sometimes a lender will ask for one prepared by a certified public accountant.
Pre-approval Requirement #2 Asset Documentation.
You’ll need to show you have enough funds readily available for a down payment. Document your assets by providing recent bank statements or investment accounts.
Pre-approval Requirement #3 Authorization Form.
When you first submit a loan application you will need to sign a borrower’s authorization form. This is a blanket form. It allows a lender to contact various third parties for information needed to close your loan.
Once you sign the authorization form, the mortgage company will use it multiple times.
Although all loans are approved in much the same manner regardless of the applicant, no two borrowers are ever exactly alike. The bank might ask you for more information if the loan progress toward a final approval.
However, if you document your income, assets and credit then your loan pre-approval is soon to follow.
To get started with a mortgage application click the following link: Mortgage App
To learn more about what our process looks like and what makes us different click the following link: Our Process