Application Process

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Getting pre-approved for a mortgage before you go home shopping isn’t required, but it is a good idea, especially where competition among buyers is intense. a preapproval letter lends weight to your bid on a home, proving to sellers that you have the financial clout to stand behind your offer. To get proapproved  you’ll need to verify a minimum of two years of your

- Income / Employment

- Residency

- Assets

- Debts

- Income and Employment

W-2 wage earners: Copies of W-2 forms and your two most recent payroll stubs. If income includes overtime, bonuses, or differential pay, you may need your most recent end-of-year payroll stub.

Self-employed,      freelancers and independent contractors:     Self-employed borrowers, including sole proprietors, partnerships, and      S-corporations, need a year-to-date profit and loss statement and two years      of records, including the Form 1099s you used to report income and file taxes.

Real estate income. Document the rental income, address, lease, and current market value of a rental property if you will      use this income to qualify for a mortgage. 

Tax returns: Copies of your two most-recent federal and state returns may be required.

- Residency

 Renters need to show payments for the past 12 months and provide contact information for landlords for the past two years.

- Assets

Bank statements: Copy 60 days' worth of statements for every account whose assets you’re using to qualify for the mortgage. Include       even blank pages of the statements.

 Retirement and brokerage accounts: Two months of statements from IRAs, investment accounts (stocks and bonds), and CDs. The last quarter statement from 401(k)s showing the vested balance. As with bank statements, include every page, even blank pages.

- Debts

Monthly debt payments: List all monthly debt payments, including student loans, auto loans, mortgage, and credit cards. Include each         creditor’s name and address, and your account number, loan balance and minimum payment amount. If you have no credit history, utility bills or records of other regular payments may be used to help you qualify for a mortgage.

Real estate debt: If your current property is mortgaged, have your most recent statement — showing the loan number, monthly payment, loan balance and the lender’s name and address — and the declaration page of the insurance policy.

- Other Records

Divorce: Have your court divorce decree ready, if applicable, and any court orders for child support and alimony payments.

Bankruptcy and foreclosure: Ask your lender what documents they’ll need and how long you should wait after bankruptcy or foreclosure to re-enter the housing market.

Down payment gift letters:  You’ll need to show the sources of the money you plan to use. If your funds include gifts, you’ll need to get letters from your donors showing they don't expect to be paid back. This is not required for a pre-approval but, will be needed as a part of the loan approval