Getting pre-approved is an essential part of the home buying process, as it gives you a clear idea of your budget and shows sellers that you’re a serious buyer.

What to Prepare

It’s important to note that you be requested additional documentation based on your unique financial situation. However, here’s a list of commonly required documents:

1. Proof of Income:
   • W-2 forms for the past two years
   • Pay stubs covering the most recent 30-day period
   • If self-employed, provide tax returns for the past two years and year-to-date profit and loss statement
2. Employment Verification:
   • Contact information for your current and previous employers
3. Asset Information:
   • Bank statements for the past two to three months (all pages)
   • Investment account statements (e.g., stocks, bonds, mutual funds)
   • Retirement account statements (e.g., 401(k), IRA)
4. Identification and Legal Documents:
   • Valid government-issued photo identification (e.g., driver’s license, passport)
   • Social Security number
   • Proof of U.S. residency or citizenship (e.g., green card, birth certificate)
5. Credit Information:
   • Authorization to pull your credit report
   • Explanation letter for any significant credit inquiries, derogatory marks, or bankruptcy filings
6. Property Information:
   • Sales contract or purchase agreement
   • Property details, including address and purchase price
7. Additional Documentation (if applicable):
   • Divorce or separation agreements
   • Proof of rental income (for investment properties)
   • Gift letter and documentation (if using gift funds for down payment)

“I AM READY.”