What is Pre-approval?
To pre-approve you for a loan, a lender calculates the loan amount you can receive based on information that a third party provides. The lender verifies your information via a credit report. The credit reporting agency acts as a neutral third party. Consider this a firm estimate of a certain loan amount. Final approval depends on whether the property also meets requirements for a loan.
Needed documentation for loan approval from each qualifying individual:
Full Doc:
- Latest 2 years tax returns and W2’s
- Last 30 days of pay stubs and/or Verification of Employment
- Latest 2 months bank statements, reflecting the funds for down payment
- If a gift is being received, gift letter and bank statements for the gift funds.
- *CPA letter and/or business license if self-employed stating 2+ years employment in same job or field.
- Retirement account statements (401k, IRA, etc), in most cases used to establish reserves and not used as funds for the purchase.
- Mortgage Statement (Refinance only)
- Copy of Hazard Insurance Policy (Refinance only)
- Copy of Social Security Card(s)
- Copy of State Id or Drivers License