Following are a couple of items to consider in preparation for obtaining a lender’s pre-approval. Note: the mortgage lender may ask you for a number of additional documents:
- Obtain your credit report before applying – This will give you an opportunity to clean any errors up before meeting with a lender. Even if your credit is good, mistakes are made all the time by retailers and institutions who make errors on names or social security numbers.
- Gather financial information – The lender will need a number of documents from you including:
- Asset and investment statements
- Bank account statements
- Credit card statements
- Auto loan statements
- Pay stubs for the last two months
- Verification of other income sources
- Tax returns and W-2s for the past two years
- Form of ID
- And, of course, the mortgage application!
The lender may ask for additional documents, but this will get you started.
- Don’t make any large purchases or move money without speaking with your lender – Don’t make the mistake of throwing your approval away with the purchase of a couch or outdoor furniture. Wait until your home is officially yours.
Meeting with a lender can feel overwhelming, but preparing and providing information timely will help make the process smoother in the long run.