When a potential client calls me one of the questions they will ask is "What documentation do I need to get a pre-approval?"
Stated income loans are a thing of the past. Getting a mortgage is a big deal. Lenders are requiring more and more documentation to prove your credit worthiness. In order to ensure that I am giving the most accurate pre-approval letter I will require the following:
1. Mortgage Credit Report-I will need your full name current address, social security number and birthdate. I will pull this through my credit agency unless you have a copy of one that has been pulled in the last 15 days through a mortgage company. Consumer credit reports, auto dealer reports, etc. use different calculations to determine your score. Although these reports will give us a ballpark as to where your score stands, it won't be used for the pre-approval.
2. 2 most recent consecutive pay stubs.-for both income and deductions (some may need to be included into your debt ratio)
3. 2 years w-2's -to show consistency of income
4. 2 years tax returns-If self-employed or you have any non-reimbursed business expenses. If a VA loan, tax payments are taken into consideration for income calculation.
5. Most recent two months bank statements/401K/investment, all pages I am not only looking for the total of the assets you have available but for:
a.) overdrafts, non-sufficient funds charges
b.) large unverified deposits
c.) transfers to or from a different account
d.) child support payments
e.) Regular payments by check or transfer that may mean another debt that must be included in your numbers.
6. If you are getting a gift for closing, I will probably have questions about the donor.
7. Divorce Decrees, Bankruptcy paperwork may be required in certain circumstances.
Additional documentation will be required prior to submitting the loan for underwriter approval, and even more may be required by the underwriter upon review. We will work together to make this process as smooth as possible, but be aware that you may be asked to hand over your first born. Banks are getting more and more strict with lending guidelines so don't be surprised at the answer when you ask: What documentation do I need to get a pre-approval?