After getting pre-qualified from a lender, the next step is to get pre-approved for a mortgage loan. Pre-approval takes a borrower one step further toward getting a mortgage loan.
Obtaining pre-approval on a mortgage loan means that a lender has confidently confirmed a borrower’s income, credit score and real estate check - your creditworthiness to repaid the loan plus interest. With pre-approval, the borrower rarely needs to provide any further documentation.
To get a mortgage pre-approval, requires all information to be verified.
Borrower’s Documentation
A home purchase or mortgage refinance requires the borrower to provide documentation that confirms the information provided on the loan application.
Borrower’s Income: Federal tax returns, W-2 forms for the past two years, recent paycheck stubs, name and address of the employer, documents that support additional income (1099 forms and leases), VA and retirement benefits, any overtime bonus.
Borrower’s Assets: A list of bank accounts, statements of the checking and savings account for the previous 2 to 3 months; record of investments, mutual fund statements, real estate licenses and stock certificates, or titles of cars.
Borrower’s Credit History: A lender is required to verify borrower’s credit score with an underwriter. Knowing that you will qualify for certain rates and programs will help your lender get you pre-approved. Gather a list of creditors: credit card bills and proofs of monthly payments towards consumer debts such as car loans, student loans, and other personal loans.
Information on the Home Purchase and Appraisal: Home sales contract showing the purchase price, in case a borrower has selected the house before getting the loan. Some lenders require an unverified, estimated market value of a real estate property.
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