Documents for a Preapproval

What Documents Do You Need for a Mortgage Pre-Approval?

Your Ultimate Checklist

When you're ready to start the home buying process, getting pre-approved for a mortgage is a crucial first step. While technically not required, this process involves providing your lender with documentation that proves your financial standing and helps them determine how much money they are willing to lend you for a mortgage. Therefore, it is in your best interest to get one before shopping around for your dream home (plus, many Realtors won’t even show you properties until you have one in hand!)

Because you’re a responsible homebuyer and will obtain a pre-approval letter, our team at Southern Trust Mortgage want to ensure the process goes as seamlessly as possible. Here are some of the essential documents you should prepare for your pre-approval!

1. Proof of income

First up, you will need to provide evidence of your income to verify your ability to repay the home loan. This can be done by showing your lender:

• W-2 Forms: These forms show how much you earned in a year from an employer.

• Pay Stubs: These documents show how much you earned in a particular pay period.

• Tax Returns: These show how much you earned in a year and can also include any self-employment income.

• Bank Statements: These can show regular deposits that are indicative of income.

2. Employment verification

Your lender may also need to verify your employment status and history. This could include contacting your employer or reviewing your employment contract. If you have recently changed jobs, you might need to provide additional documentation to prove your income. 

A few examples of documents you can provide to prove employment are:

• Verification of Employment (VOE): This document is completed by your employer and verifies your job status, income, and length of employment.

• Offer Letter: A new job offer letter can be used to verify your employment.

• Pay Stubs: These documents can be used to verify both your employment and income. (Win, win!)

3. Proof of assets

You may also be asked for evidence of your assets to ensure that you have enough money to cover the down payment and closing costs of your new home. 

This may include showing your lender:

• Bank Statements: These show your savings and checking account balances.

• Investment Account Statements: These can show any stocks, bonds, or other investments that you have.

• Retirement Account Statements: These can show your IRA or 401(k) balances.

4. Debt obligations

Your lender will also want to evaluate your existing debt obligations to determine if you can afford the mortgage payments using something called a debt-to-income ratio (DTI). Some of the documents you could provide for this check are:

• Credit Report: This document shows your outstanding debts and any missed payments.

• Loan Statements: These show how much you owe on a particular loan and can be used to calculate the debt-to-income ratio.

• Verification of Rent/Mortgage: This document verifies your current housing expenses.

5. Identification

Last but not least, your lender will need to verify your identity to comply with anti-money laundering regulations. This may include your:

• Driver's License: This document shows your name, photo, and address.

• Passport: This can be used to verify your identity and citizenship.

• Social Security Card: This can be used to verify your social security number.

Final Notes

By understanding which documents you need to provide for your preapproval, you can streamline the process to get to the fun part: shopping for your dream home! 

If you are ready to start the preapproval process, contact a trusted mortgage lender like us here at Southern Trust Mortgage. We can guide you through the process and, if you need more information on it, help you understand what documents you need to provide for pre-approval. With our help, you can achieve the dream of homeownership in no time! 

Connect with one of our skilled Southern Trust loan officers today to get started!