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Pre-Approval 101

12 May Pre-Approval 101

Conventional Loan Documents

If you’re employed and get regular paychecks, plus a W-2 every year, and you’re not going through FHA, USDA, or an incentive-buying program, these are the documents you need to apply for mortgage pre-approval:

Identification (one of these, which you will need to show in person)

-Driver’s license

-Passport

-Other state- or federal-issued ID

Income

-Two most recent paystubs

-Two most recent years federal tax returns, all pages and schedules

-Two most recent years W-2s

-Proof of any additional income (second jobs, social security, alimony, etc.)

Accounts

-Two most recent Statements for all bank accounts — be sure to include all pages, even blank ones

-Two most recent Statements for all investment and/or retirement accounts – be sure to include all pages, even blank ones

Property

-Settlement Statement from previous home sale or purchase, if applicable

-Most recent mortgage Statement on all properties you own, if applicable

-Proof of insurance for all properties you own

-Current signed leases for all properties you own

Additional documents

-Contact information for your landlord(s) for the last two years, if applicable

-Divorce decree, separation agreement, and/or property settlement agreement, if applicable.  

 

FHA Loan Documents

[Download the printable version]

If you’re applying for mortgage pre-approval with the Federal Housing Administration, these are the documents you need to apply for mortgage pre-approval:

Identification (one of these, which you will need to show in person)

-Driver’s license

-Passport

-Other state- or federal-issued ID

Income

-Two most recent paystubs

-Two most recent years Federal tax returns, all pages and schedules

-Two most recent Years W-2s

-Two most recent years Corp, S-Corp, LLC, or partnership tax returns, if applicable

-Proof of any additional income (second jobs, social security, alimony, etc.)

Accounts

-Two most recent Statements for all bank accounts — be sure to include all pages, even blank ones

-Two most recent Statements for all investment and/or retirement accounts — be sure to include all pages, even blank ones

Property

-Settlement Statement from any recent home sales or purchases, if applicable

Additional documents

-Contact information for your landlord(s) for the last two years, if applicable

-Divorce decree, separation agreement, and/or property settlement agreement, if applicable

 

Investment Property Documents 

[Download the printable version]

If you’re buying a property you plan to rent, these are the documents you need to apply for mortgage pre-approval:

Identification (one of these, which you will need to show in person)

-Driver’s license

-Passport

-Other state- or federal-issued ID

Income

-Two most recent paystubs, if applicable

-Two most recent years Federal tax returns, all pages and schedules

-Two most recent years W-2s, if applicable

-Two most recent years Corporate, S-Corp, LLC, or partnership tax returns, if applicable

-Proof of any additional income (second jobs, social security, alimony, etc.)

Accounts

-Two most recent Statements for all bank accounts — be sure to include all pages, even blank ones

-Two most recent Statements for all investment and/or retirement accounts — be sure to include all pages, even blank ones

Property

-Settlement Statement from any recent home sales or purchases, if applicable

-Most recent mortgage Statements on all properties you own

-Proof of insurance for all properties you own

-Current signed leases for all rental properties you own

Additional documents

-Contact information for your landlord(s) for the last two years, if applicable

-Divorce decree, separation agreement, and/or property settlement agreement, if applicable

 

Self-Employed or Business-Owner Mortgage Documents

[Download the printable version]

If you’re self-employed or own a business, these are the documents you need to apply for mortgage pre-approval:

Identification (one of these, which you will need to show in person)

-Driver’s license

-Passport

-Other state- or federal-issued ID

Income

-Two most recent paystubs, if applicable

-Two most recent years Federal tax returns, all pages and schedules

-Two most recent years W-2s, if applicable

-Proof of any additional income (second jobs, social security, alimony, etc.)

Accounts

-Two most recent Statements on all bank accounts — be sure to include all pages, even blank ones

-Two most recent Statements for all investment and/or retirement accounts — be sure to include all pages, even blank ones

-Two most recent years Corporate, S-Corp, LLC, or partnership tax returns

-Two most recent years W-2s, if applicable

Property

-Settlement Statement from any recent home sales or purchases, if applicable

Additional documents

-Contact information for your landlord(s) for the last two years, if applicable

-Divorce decree, separation agreement, and/or property settlement agreement, if applicable

-Year to Date profit-and-loss statement(s) (you can put one together in about five minutes)

-Balance sheet, if applicable (rules vary by state)

-Current business license

 

VA Loan Documents

[Download the printable version]

If you’re seeking pre-approval for a Veteran’s Administration home loan, these are the documents you need to apply for mortgage pre-approval:

Identification (one of these, which you will need to show in person)

-Driver’s license

-Passport

-Other state- or federal-issued ID

Income

-Two most recent pay stubs if applicable

-Two most recent years Federal tax returns

-Two most recent years W-2s if applicable

-Two most recent years Corporate, S-Corp, LLC, or partnership tax returns, if applicable

-Proof of any additional income (second jobs, social security, alimony, etc.)

Accounts

-Two most recent Statements on all bank accounts — be sure to include all pages, even blank ones

-Two most recent Statements for all investment and/or retirement accounts — be sure to include all pages, even blank ones

Property

-Settlement Statement from any recent home sales or purchases, if applicable

Additional documents

-Contact information for your landlord(s) for the last two years, if applicable

-Divorce decree, separation agreement, and/or property settlement agreement, if applicable

-Certificate of eligibility (COE) from the Veteran’s Administration, which may require one or more of these documents, depending on your situation:

-Form DD-214, certificate of release or discharge

-Statement of service from the adjutant, personnel office, commander, or higher headquarters if still on active duty

-Form 26-1817 or form 21-534 for surviving spouses, plus form 1300, report of casualty, or death certificate

 

USDA Loan Documents

[Download the printable version]

If you’re applying for a U.S. Department of Agriculture Loan, these are the documents you need to apply for mortgage pre-approval:

Identification (one of these, which you will need to show in person)

-Driver’s license

-Passport

-Other state- or federal-issued ID

Income

-Two most recent Pay stubs for the last 30 days, if applicable

-Two most recent Federal tax returns

-Two most recent years W-2s, if applicable

-Two most recent years Corporate, S-Corp, LLC, or partnership tax returns, if applicable

-Proof of any additional income (second jobs, social security, alimony, etc.)

Accounts

-Two most recent Statements on all bank accounts — be sure to include all pages, even blank ones

-Two most recent Statements for all investment and/or retirement accounts — be sure to include all pages, even blank ones

Property

-Settlement Statement from any recent home sales or purchases, if applicable

Additional documents

-Contact information for your landlord(s) for the last two years, if applicable

-Divorce decree, separation agreement, and/or property settlement agreement, if applicable

-Documentation of child-care expenses for dependents 12 or younger, if applicable

-For any household member who is a full-time student 18 years of age or older, a current school transcript

-Annual medical expenses for applicants 62 years of age or older, or with a disability (to be considered for a deduction in household income)

 

Job-Based Incentive Loan Documents

[Download the printable version]

Incentive-based programs — such as Good Neighbor Next Door, which provide mortgage assistance for public servants such as teachers, firefighters, police officers — have their own criteria. If you’re seeking one of these mortgages, these are the documents you need to apply for mortgage pre-approval:

Identification (one of these, which you will need to show in person)

-Driver’s license

-Passport

-Other state- or federal-issued ID

Income

-Two most recent Pay stubs, if applicable

-Two most recent years Federal tax returns

-Two most recent years W-2s, if applicable

-Proof of any additional income (second jobs, social security, alimony, etc.)

Accounts

-Two most recent Statements on all bank accounts — be sure to include all pages, even blank ones

-Two most recent Statements for all investment and/or retirement accounts — be sure to include all pages, even blank ones

Property

-Settlement statement from any recent home sales or purchases, if applicable

Additional documents

-Contact information for your landlord(s) for the last two years, if applicable

-Divorce decree, separation agreement, and/or property settlement agreement, if applicable

-Proof of industry in which you work, this could include ID, License, Certificate, etc., and will also include a verification of employment at some point in the loan process, proving you work there.

Ashley Vella
ashley@livewestrealty.com