Buying a home can be a stressful process. Don’t go into the process blindsided and get pre-approved from a lender quickly in order to find the house of your dreams faster. In order to get pre-approved a lender will require the following documents.
1. Proof of Income and Employment: Proof of income includes the last two years of w2 or 1099, recent pay stubs, two most recent years of tax returns, and any documents that show additional income such as alimony or bonuses. If you are self-employed you need at least 2 years of tax returns.
2. Proof of Assets: You have to show the latest bank statements or investment account statements to prove that you have the funds for a down payment and closing costs.
3. Debts: If you have any debt such as credit cards, student loans, auto loans, or mortgage payments, the lender needs the latest statements. So make sure you aggregate everything you owe to financial institutions to give your lender an accurate account.
4. Additional Documents: Additional documents that you might need depending on your situation are a divorce decree, a gift letter for a downpayment, documents regarding bankruptcy, driver’s license, and social security. These documents establish the preliminary information needed to define your status, identity, and eligibility.
