What You’ll Need To Bring To The Bank. Everything You’ll Be Asked To Provide For Your Mortgage Pre-approval Letter
February 25, 2016
Documents Needed for the Mortgage Pre-approval Process
When you apply for a loan, there are many documents that you will need to provide to a lender. The purpose of each of these documents, is that they all determine your ability, or inability, to pay back a loan. The banks will use these documents to decide if you are a viable candidate for a mortgage loan. Here are the most common things requested when getting pre-approved for a loan:
Social security number for anyone who is on the mortgage loan. This information can be verified through a Social Security card or tax documents. The lender needs this to verify your identity, and also be able to pull your credit history.
Proof of employment. Your mortgage lender will request a list of employers for the last two years, minimum. This document will ask you to submit each employer’s name, mailing address and
phone number. This information is critical to the lender, as it will give them an idea as to whether or not you are a risk.
Proof of income. These mortgage documents are used to validate your income. It can come in several forms. This will be your two most recent pay stubs. It’s your average annual income the lender wants to know about. The lender will also use tax records to verify your earnings.
Tax documents. This is a standard document for mortgage pre-approval. Most lenders want to see your W-2 statements and tax returns for the last two years. These W-2 statements will also show how much income you accrued over previous years as well.
Place of Residence. This one is self-explanatory. The lender wants to know where you’ve lived for the last couple of years, and maybe longer. The longer you’ve lived at a residence, the stronger candidate for a loan you become. Banks like to see stability, rather than a person who has moved many times.
Bank account information. When you apply for mortgage pre-approval, the lender will want to know how much money you have in the bank. They need to ensure you have sufficient funds for your closing costs, and down payment. So they will probably ask you for account statements and balances for any checking, savings, or money market accounts.
Credit information. This information is required, as the lender needs to know how many other outstanding loans you have, if any, as well as your payment history on them. These loans may include a car loan, a loan on another current property, or student loans.
Gift letters. Gift letters must be provided if you have someone helping you with a down payment, such as a family member. The lender needs to make sure that the money is a genuine gift, and that they do not expect any form of repayment from you.
Monthly expenses. Many mortgage companies will ask for an itemized list of your monthly payments. This can include things such as credit card bills, student loans, rent, or utilities. Here is a great Sample Gift Letter from NOLO.