Gathering documents to get pre-approved for a mortgage sets buyers who buy homes apart from buyers who aren’t able to buy a house. Buyers who are pre-qualified by a mortgage lender prior to beginning their home search have a significant advantage over buyers who have not called a lender to get pre-qualified or (even better) pre-approved for a mortgage loan. Below is a checklist showing what documents you need to get pre-approved for a home mortgage loan.
Being pre-qualified for your loan with a letter from a lender is important. Sellers, however, are even more impressed when buyers have already taken their mortgage documentation to their lender and been pre-approved by underwriters prior to beginning their home search. This is especially important in certain price brackets in midtown Tulsa and Broken Arrow, where competition for inventory is high and buyers are competing for cream-puff properties.
It is important to be prepared to get pre-qualified for a mortgage prior to beginning your home search. It is best for buyers to submit a letter from a mortgage lender when submitting offers for properties. If they are paying cash, then a proof of funds letter is needed to show sellers that you can purchase their home.
Since first-time home buyers as well as move-up buyers are often unfamiliar with the current process of getting a mortgage loan. What documents do you need to get pre-approved for a home mortgage loan? The following checklist of documents needed for mortgage approval has been provided courtesy of AMC Mortgage.
Here is a Pre-Approval Mortgage Document Checklist
- Provide most recent, consecutive pay stubs for one month.
- Provide all W-2’s for the past two years.
- Provide all pages and schedules of last two years’ personal Federal income tax returns
- If self-employed, provide all pages and schedules of last two years’
- business tax returns
- corporate K-1’s
- If self-employed, provide current
- Balance Sheet
- Profit and Loss Statement (P&L)
- If retired,
- provide benefit award letter
- provide last two years’ 1099’s
- provide all pages and schedules of last two years’ Federal income tax returns
- If any rental income is received,
- provide copy of current lease agreement
- provide mortgage statement
- Veterans or active duty personnel applying for a VA loan must
- provide copy of Statement of Service Letter
- provide copy of Off Base Housing Authority Letter
- Provide ALL pages of most recent 2 months’ statements for all accounts, including:
- all checking accounts
- all savings accounts
- all stocks
- all IRA accounts
- all 401-K accounts
- These statements must show:
- your name
- your account number
- the name of the banking institution
- If funds to close will come from a gift,
- complete the gift letter
- obtain documents from the donor:
- bank statements showing the funds in the donor’s account
- a copy of the gift check from the donor’s account
- obtain documents from the borrower:
- a copy of the deposit slip showing the gift check deposited into the borrower’s account
- If funds to close will come from the sale of a home,
- provide a copy of the HUD-1 settlement statement from closing on the sale of the home
- provide a copy of the deposit slip showing proceeds from the sale of the home deposited into the bank
- Provide a copy of your driver’s license already enlarged on the photocopy machine
- Provide a copy of your social security card
- If divorced, provide a copy of your final divorce decree including the stamp showing it was filed at the court house
- If you have ever declared bankruptcy, provide:
- a copy of bankruptcy papers, including:
- all schedules
- discharge paperwork
- credit explanation letter stating reason for the bankruptcy
- a copy of bankruptcy papers, including:
- Provide letters of explanation for:
- any late payments
- any and all charge offs
- any derogatory credit
- Provide letter of explanation for all recent credit inquiries
- If applicant is a veteran, provide:
- Certificate of Eligibility or
- copy of DD214
- Information regarding Homeowner’s hazard insurance for the subject property, including:
- Agent’s name
- Agent’s address
- Agent’s phone number
- If the subject property is being refinanced, provide
- a copy of the note
- a copy of the mortgage statement from the current lender showing the account number
- If you are retaining your current residence, provide:
- a copy of a mortgage statement showing taxes and insurance are included in the monthly payment
- If you are currently renting, provide:
- your Landlord’s name
- your Landlord’s phone number
- your Landlord’s address
- copies of 12 month’s worth of cancelled rent checks if your Landlord is a private Landlord
- If you live with a family member,
- provide a letter from that family member stating you live rent free
Now that you have seen this list, you may understand why sellers would rather accept offers from buyers who have already submitted these documents to a mortgage lender and have been “vetted” by on-site underwriters prior to their beginning their home search. Pre-qualified buyers and pre-approved buyers are always much stronger than buyers who have not yet gone through this arduous process of providing documentation to their lender.
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Debbie Solano, ALC, CRS is a Residential Real Estate Broker and REALTOR® at Coldwell Banker Select. She would enjoy your feedback or questions. She can be reached at 918-724-8201 or dsolano@cbTulsa.com.
Fall maintenance ideas were gleaned from an article by Anita Alvarez, “Preparing Your Home for Autumn: Maintenance Tips for the End of Summer,” RIS Media’s House (Posted on September 15, 2016).
Copyright © 2016 Deborah M. Solano. All rights reserved.
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