WHY APPROVAL MATTERS

The first step in any home search is finding exactly how much home you can afford and securing the financing to purchase. While you can get a rough estimate through prequalification, taking the extra step to obtain pre-approval will give you some added advantages.

Pre-approval helps you:

Understand your financial condition
Know exactly how much home you can afford before you begin your home search
Strengthen your purchasing power when making an offer

When you find a home you love and are ready to make an offer, your mortgage pre-approval lets the seller know that you're serious and fully prepared to buy their home, putting you in a stronger position than other potential buyers.

Here are some initial documents one may need when applying for a home loan.

Most Recent Two Year’s Federal Tax Returns (all pages and schedules)

We want to get the full story of a buyer’s financial situation, ensure reported annual income is consistent with reported earnings through pay stubs, and confirm there are no huge fluctuations from year to year.

Most Recent Two Year’s W-2s

We will likely require each loan applicant's most recent two years' W-2s from all current employers. If new W-2s become available during the loan application process, we may also require those to be produced. If a buyer is self-employed, they will be asked to provide 1099 forms.

Most Recent 30 Days Pay Stubs

Pay stubs help gauge current earnings and help document proof of employment and proof of sufficient ability of a buyer to repay the debt created by the loan.

Most Recent 60 days Bank Statements

Lenders will want to examine bank statements when assessing the risk profile. They typically request these documents to ensure that the buyer has the funds available to close and that these funds have been in the account for at least a few months and did not just show up overnight.

Two Forms of Identification

A buyer must provide a photo ID, such as a driver’s license and passport. Many times, a second form of ID will be required. This is simply to prove the buyer is who they claim to be.