Do I need documents to get a mortgage pre-approval?
When home shoppers ask about the first step to getting a mortgage, the response should be, “Get a mortgage pre-approval.” A pre-approval is an early assessment that determines how much a lender is likely to loan you for the purchase of your home. This is a common first step to make as it gives you an idea of how much house you’re likely to get approved for, makes real estate agents and sellers know that you’re serious, and enables you to shop with greater confidence.
One of the key benefits of having your pre-approval letter is that lenders see it as a legitimate estimation of how much you’re able to afford. It can usually be completed quickly and enable to continue your journey to a new home with confidence. In fact, Owning offers a pre-approval that only takes about 10 minutes.
Have you decided that pre-approval is the right first step for you? If you’re ready to get pre-approved, you can apply online and get moving towards your goal today.
Is it possible to get a pre-approval without documents?
It’s possible to get a conditional pre-approval by self-reporting your financial info, but you will need to submit documents to get a full pre-approval. A conditional pre-approval simply means that you’re in the process of applying and are working with a lender. It doesn’t mean that you’re pre-approved or approved. It’s simply a conditional document that allows you to tell an agent or seller that you’re working with a lender.
Owning enables you to self-report your information for conditional pre-approval and then submit documents for verification when you apply for a mortgage. As long as you have a basic idea about your personal finances and a general idea about where you want to buy, a conditional pre-approval should only take a few minutes to complete and enables you to start shopping for a home with confidence.
Which documents should I get together for a mortgage application?
While pre-qualification can be completed without the need for documents, it’s still a good idea to get your information together before applying for a mortgage.
Your lender will use the documents that you provide and will do their own reviewing to verify that the submitted information is accurate and current.
Here is a brief list of what you may have to provide:
- Pay stubs: this usually covers a month range.
- Tax returns: typically lenders want a span that covers the past two years.
- Employment Information: verification of current employment over the past two years, this does not have to be with the same employer but you want to show that you can keep a job within the same field. Also, proof of other income like Social Security benefits and Child Support.
- Bank Statements: usually your checking and savings accounts over the last three months.
- Business Records; this is for self-employment (whether full or part time)
If you have additional assets, your lender may ask for information regarding it. Typically, assets can be:
- Any gift will need a gift letter for verification
- Investments, 401k and/or IRAs
- And other properties that you may have
Identifying yourself is another very important aspect of the pre-approval process. Lenders want to make sure that you are who you say you are, and it is a safety measure so that no one tries to take out mortgages in someone else’s name. Documents likely to be requested include:
- Personal identification will be necessary
- List of previous residences
Lastly, you will need to provide information regarding any debts that you may have, usually a loan statement will suffice. Your debts may include:
- Student loans
- Auto loans
- Credit cards
- Personal loans
How can I start my pre-approval application?
Are you ready to get pre-approved for a mortgage and show sellers how serious you are? Start our online application, and get it finished with documents in 10 minutes or less. Don’t believe us? Time how long it takes and let us know if there was a problem.
Do you have a watch or a clock nearby? 10 minutes starts….now! Get pre-approved!
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.