What Is Needed For A Pre-Approval

If you are looking to get pre-approved for a mortgage loan, then there are several items that you will need to provide to your mortgage professional or mortgage broker. The first step in the pre-approval process is to find a mortgage professional or mortgage broker that you feel comfortable working with. The more information that you provide upfront for your mortgage broker, the better off you will be in the long run and the less chances you have for any problems or delays in closing.

To give you an accurate mortgage pre approval the mortgage broker will need proof of your income and assets so bring your most recent paycheck stubs, last 2 years W-2 statements and any financial account statements. Your income level will help the mortgage broker determine your DTI (debt to income ratio) and give you an accurate purchase price for a new home.

If your mortgage loan is a refinance, you will need to provide a recent mortgage statement. This statement is needed to order an up to date payoff on your existing loan. It is important for your mortgage professional to know the exact amount you owe for the purpose of structuring your loan correctly. In addition, if there is a pre-payment penalty on your existing mortgage, your payoff will indicate that as well. This will be added into your loan amount.

It is important to have a pre-approval letter when you are shopping for a house. The letter will indicate the amount that the lender is willing to provide as a loan and will help you determine how much of a house you can afford. Sellers will consider you a more serious buyer if you already have a pre-approval letter.

If you have secondary employment or income that is being used to help you qualify, you will need documentation of this income as well. Typically, you will need a 2 year history for any part-time jobs or other income.

A current mortgage-specific Credit Report will be needed for a pre-approval to be issued, and must be pulled by the issuer in many states. Generally. if you've been pre-approved for a credit-based mortgage without a credit check by the issuer of the letter, that pre-approval letter isn't worth the paper it's printed on.

» DISCLAIMER: The information contained in this article on 'What Is Needed For A Pre-Approval' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.