The Pre-Approval Checklist: What You Need Before You Apply

House hunting without a mortgage pre-approval is like shopping without your wallet – you might find “the one” but can’t make it yours. Getting Pre-Approved for a Mortgage not only gives you a clear picture of your budget, but it also shows sellers you’re a serious and prepared buyer. Think of it as your “golden ticket” to the homebuying process. But before you get it, you’ll need to have the right documents and information ready.

If you don’t know where to start, you should find a professional, reputable Mortgage Loan Officer to help guide you through the process.  If you don’t already know of a good one, the best resource for a referral is your Realtor.  Not all Mortgage Loan Officers are created equal, so you need someone who is not only a knowledgeable and experienced professional, but also someone who is sincerely looking out for YOU (and not how they can make the most money off you!).  Coworkers, family, and friends could be an alternate source if you don’t already have a Realtor you trust.  In any case, be sure to look up the Google Reviews of any Mortgage Loan Officer you might consider.  For more, please see the video I have on my YouTube channel at https://www.youtube.com/shorts/61BshC0be8o

Once you have identified the Mortgage Loan Officer you choose to work with, you will begin the Pre-Approval process.  To help, we have a Pre-Approval Checklist for what you will need to have ready in order to make this process smooth and stress-free.

1. Proof of Income and Employment

Your lender needs to know you have a steady and reliable source of income. This typically includes:

• All W-2 forms from the last two years
• Most recent pay stubs, covering the last 30 days
• If you’re self-employed, tax returns from the past two years
• Documentation of additional income, such as bonuses, commissions, rental income, child support, etc.
• Any pension or social security awards letters.

2. Proof of Assets

You’ll need to show that you have enough funds for:

• Down Payment (varies, depending on loan type)
• Closing Costs

Documentation usually includes the 2 most-recent statements for bank accounts, retirement accounts, or other investment account statements.

3. Credit and Debt History

Your credit score plays a major role in your loan approval and interest rate. Before you apply, check your credit report for errors and make sure any outstanding issues are addressed.  You can typically see your credit report by creating a free account with Experian.com, Equifax.com, and/or TransUnion.com.

And don’t shy away from sharing with your Mortgage Loan Officer any surprises or negative items you see on your credit report.  An experienced, professional Mortgage Loan Officer has seen it all, and there is never any judgement.  And on top of that, he or she can quite often help you identify the quickest and least-expensive way to boost your credit score.

4. Identification

Make sure you have a valid government-issued ID, such as a driver’s license, passport, or state ID card, as well as your Social Security number.

5. Additional Documents (If Applicable)

Depending on your situation, after reviewing your application, your Mortgage Loan Officer will let you know if anything else is needed, such as:

• Divorce decree or child support documentation
• Previous Bankruptcy or foreclosure paperwork
• Documents related to other homes you own
• Gift letter (if a family member is helping with your down payment)

Why Getting Pre-Approved Matters

A Pre-Approval isn’t just paperwork; it’s your first step toward a confident homebuying experience. With a pre-approval letter in hand, you can shop for homes that truly fit your budget and act quickly when you find the perfect one.

• You will have confidence that you qualify for a mortgage to buy that dream home you discovered.
• You will have a clear understanding of how much your Monthly Mortgage Payment will be at the various price points you are considering.
• You will also have a good understanding of how much in funds you will need to cover the Down Payment and Closing Costs at those various price points.

Gathering these documents ahead of time will not only speed up the process but also give you a clear understanding of your financial position before you start house hunting.

And having a Pre-Approval Letter in hand when you find that dream home will allow you to immediately make an offer on the home before anyone else does, while others are scrambling to start the Pre-Approval process after they find the home!

Ready to get Pre-Approved?

As a trusted mortgage professional, I guide my clients every step of the way, from preparing the right documents to closing on their dream home. Call me today at (214) 542-2095 or email Rob@TeamRobHomeLoans.com to start your pre-approval process and take the first step toward owning your new home.