Before you can access a mortgage, you need to get approved. Determining what items are required to get approved for a mortgage can be tricky.
Several items are necessary for mortgage approval, and these things often come into play during pre-approval. This article will help you understand the documents and proof that are critical to earning this confirmation as you seek financial help.
Mortgage Pre-Approval Checklist
There are several items you will need to get pre-approved for a mortgage. All of these documents provide proof of income, payment history, and other debts you might have. Lenders use this information to determine if they are willing to lend you money.
The things needed to get approved for a mortgage include:
Let’s dive into the individual items on this mortgage pre-approval checklist. These will help you be as prepared as possible to get a loan, and each item is vital to pre-approval.
Proof of Assets
The first item you will need is proof of assets. This proof demonstrates that you have enough funds to pay for critical components of the mortgage, such as closing costs and down payments. They also expect some excess funds just in case.
You will prove you have sufficient assets through bank and investment account statements. These prove that you have money consistently entering your account and that there are finances currently inside.
Lenders want someone they can rely on in the long term. If they won’t get anything from you as a buyer, then they won’t approve you for a mortgage.
Proof of Income
Among the documents needed for home loan pre-approval is proof of income. The lender needs ample evidence that you have a consistent way to make money and pay off the debt.
Proof of income is valid through forms such as:
- W-2 documents
- Pay stubs
These prove to a lender that you have made money in the past few years.
Offer a few years’ worth of documentation on your pay. The more thorough you are with proof of income, the more confident a lender will be.
Buyers need to produce a few forms of income proof to be considered for approval. It’s one of the first things that might appear in the application process. When asking – what do you need for pre-approval? – proof of income should rise to the top of your priorities.
Although there are some exceptions, employment verification is one of the most essential steps to getting approved for a mortgage. Lenders are …….