First Step Before Looking For A Home….

What Documentation Do I Need To Provide for Mortgage Pre-Approval?

Your lender may require documentation to verify different financial factors. Some of these may include your income, debt, assets and more. It is best to prepare these documents ahead of time to avoid any delays in the home buying process.

W-2 Employment and Income History

Check Stubs
W-2s
One month minimum of verified income is required. You can provide this verification with paycheck stubs. Usually, your most recent W-2 Form will also be required. Some borrowers may be required to provide the most recent two years of W-2’s.

Self-Employment and Income History

Personal and business tax returns
Profit and loss statements
If you are self-employed, gather all pages of your personal and business tax returns. Be prepared to also submit a current-year profit and loss statement. Your lender may require further documentation such as a balance sheet. This varies with each situation, but your lender should be able to clarify how much detail they need.
Your lender will also obtain a transcript of your tax returns from the IRS. They will require this to compare it with the documentation you provided them and to prevent fraud.

Complete List of Assets

Bank statements
Mutual fund statements
Brokerage statements
Real estate titles
Automobile titles
These documents will be requested to document all money-related assets. Your bank statements will be reviewed to verify the amounts and availability of your down payment funds. Your lender may request two to four months of statements from each account. Other assets may strengthen your loan application by showing reserves. This can be seen as a compensating factor.

Complete List of Debts

You can document your debts ahead of time, but this is actually one of the easier steps during this process. Your lender will have to pull a credit report on your behalf. This will provide the information needed to verify credit card debt, installment loans, car loans, and more. If possible, ask for a copy of your report to ensure everything is reporting correctly. Contact me today to to discuss options for a lender to help you!




Caron Koteles Riha is a licensed Real Estate Broker with Real Estate One.
She can be reached at 248-379-6651 or Caron@CaronKoteles.com

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