Reader Question: "I plan to apply for a home loan to buy a house later this year. I was told I should get pre-approved first. What kind of mortgage documents are needed for the pre-approval process, and for underwriting? I wanted to get a head start on rounding these things up." At a glance: Many different types of documents are required during the mortgage application, pre-approval, and
underwriting process. Most of them relate to your income, assets and debts. Common documents needed for a home loan pre-approval include bank statements, pay stubs, W-2s and tax returns. The Various Stages of the Mortgage ProcessWhile this article focuses on the paperwork that's typically needed for a mortgage pre-approval process, we need to touch on the other stages of the lending process as well. As a borrower, you might be asked for documents at various points along the way. Here are some of the stages where you might be asked to provide them:
Now that we've put the pre-approval into a broader context, let's look at some of the common documents that are required during the mortgage pre-approval process. Documents Needed for Mortgage Pre-Approval and UnderwritingPaperwork is the lifeblood of the mortgage industry. While the industry is gradually adopting paperless procedures (such as electronic signatures, or "e-signing"), there are still plenty of documents required in a typical mortgage pre-approval process. Here are some of the most commonly requested items:
Note: This is just a generic list of mortgage pre-approval documents. It includes some of the most commonly requested items. Depending on your situation -- and the type of home loan you are using -- you might be asked to provide or sign additional documents that are not on this list. When you first start talking to a mortgage lender, they will likely provide you with a list of the specific documents they need to issue a pre-approval. This list can vary from one mortgage company to the next. What information is necessary to get a pre approval?Unlike prequalification, preapproval is a more specific estimate of what you could borrow from your lender and requires documents such as your W2, recent pay stubs, bank statements and tax returns. The lender will then use these documents to determine exactly how much you can be preapproved to borrow.
What are the five things you need for pre approval?Requirements for Pre-Approval. Proof of Income. ... . Proof of Assets. ... . Good Credit. ... . Employment Verification. ... . Other Documentation.. What do they look at to get preapproved for a mortgage?Mortgage preapproval is the process of determining how much money you can borrow to buy a home. To preapprove you, lenders look at your income, assets and credit score and determine what loans you could be approved for, how much you can borrow and what your interest rate might be.
|