Documents Needed for Mortgage Pre-Approval

When getting pre-approved, there are some documents that you might be asked for.

Documents needed for a mortgage pre-approval:

1. Proof of Employment: A mortgage lender might want to see a list of employers for the past two years, maybe longer. In addition to the name of your employer, a lender will want to see a mailing address and phone number. This helps the lender see your ability to repay the loan.
2. Proof of Income: Proof of income is used to validate your income. This can come from your two most recent pay stubs, or an electronic equivalent, that shows your year-to-date earnings. Your lender will want to know what your average annual income is. In addition to your proof of income, a lender will use tax records to verify your income.
3. Social Security Number: The social security number is needed for anyone who is on the mortgage loan. This information can be verified through a social security card, any tax documents, or other documents that show your social security number. Your SSN is used to verify your identity and to pull up your credit.
4. Tax Documents: This is a standard document for obtaining a pre-approval. Most lenders will want to see your W-2 statements and tax returns from the last two years. This shows how much more you’ve earned over previous years. These documents are some of the most likely your lender will ask you for.
5. Place of Residence: A lender will want to know where you have lived for the last few years.
6. Bank Account Information: A lender will want to know if you have sufficient funds in the banks for all costs endured during the home buying process, including, closing costs, down payment, and cash reserves. A lender might ask you for account statements and balances for any of your checking, savings, or money market accounts. All lenders will ask for this.
7. Credit Information: If you have any outstanding loans that you are repaying, the lender may ask for documents related to those loans. Lenders want to see your debt to income ratio and these documents help them calculate that.
8. Gift Letters: If any family members or friends are helping you with your down payment, you’ll need to provide your lender with a gift letter along with the other mortgage documents. Gift letters show that the money given is a gift and that the provider is not expecting repayment in any form.
9. Monthly Expenses: It is possible that you will be asked for a list of your monthly payments, including your rent, credit cards, and student loans.
10. Self-Employment Documents: If you own your own business, you might be obligated to provide additional documents for your pre-approval, including balance sheets, profit-and-loss statements, and federal tax statements from the last two years.

Looking for more information on pre-approval documents? Check out our mortgage resources section which offers some additional insight.

Update: Check out our PDF download: mortgage application document checklist and pre-approval documents.