What Documents Are Needed for a Mortgage Preapproval?
Most homebuyers get preapproved for a mortgage before making an offer—and for good reason. After the lender runs a credit check and reviews your financial documents, you'll receive a preapproval letter showing how much they're willing to lend you, your expected interest rate and how long the letter is valid. Having that letter in hand can show sellers that you're a serious buyer, and gives you a clearer idea of how a mortgage will figure into your overall finances.
When you're applying for preapproval, the goal is to provide the lender with an accurate snapshot of your finances. To that end, there are several documents required for a mortgage preapproval.
What Documents Are Needed for a Mortgage Preapproval?
When you're going through the mortgage preapproval process, the lender will request documentation to substantiate your income, debts, assets and down payment amount. Below is a checklist of documents you'll likely need to provide.
Identification
You'll need a government-issued ID, such as a driver's license or passport, along with your Social Security card.
Proof of Income
The lender will want to see evidence to back up your earnings. It's a good idea to gather the following:
- Your last eight weeks' worth of pay stubs
- Two years of tax returns
- W-2 or 1099 forms
Credit Report
Your mortgage lender will review your credit history and credit score when considering your preapproval application. The stronger your credit, the more likely you'll be to qualify for a competitive interest rate on your home loan. Different types of mortgages also have minimum credit score requirements, and eligibility criteria can vary from one lender to the next.
You won't have to provide an actual copy of your credit report, but you'll need to consent to a credit check. That will result in a hard inquiry on your credit file, which can knock a few points off your credit score. The inquiry will stay on your credit report for up to two years but will only affect your FICO