Mortgage loan pre-approval is important because, your finances will undergo greater scrutiny than they would if you were to only get pre-qualified for mortgage , and best of all, you will be able to really know how much of a mortgage loan you really qualify for.
In this post we will provide you with information about the documents that you’re going to need for the mortgage loan pre-approval process.
The first document that you will need to provide is the mortgage application, on this application you will be asked to disclose your name, social security number, address for the last two years, birthday, employment history, information about your finances, and other financial information that your lender may require.
After supplying your lender with the mortgage application, you will also be required to provide them with your credit report. This report will be purchased by the lender, and it will provide them with your credit score from three major credit bureaus: Equifax, Experian and Transunion.
The credit report is an important part of the preapproval process because, it will also provide your lender with additional information including if you have unpaid bills, or other credit issues, that could stop you from being approved for the mortgage loan.
Once you supply your mortgage application and credit report, you will also be required to provide the lender with your paycheck stubs from the last two years.
Your pay stubs are important because they will enable the lender to calculate your “base income” from last two years especially if it includes any commissions that you received, bonuses or income from other sources so they know if you have sufficient income to be preapproved for a mortgage loan are not.
You will also be required to provide two years-worth of tax returns that document all of your income from your job and all other income sources.
What Other Documents Will Be Required?
Besides the documents mentioned in this article you will also be required to provide your bank statements, 1099’s and information on all other sources of income that you may have.
To learn more about the documents you will be required to provide during mortgage loan pre-approval contact Fred Sed Realty today by calling us at (800) 921-9231 or connect with us online.