Home Buyer’s Checklist: Important Mortgage Pre-Approval Documents | MSI Credit Solutions

Home Buyer’s Checklist: Important Documents Your Lender Will Need for Mortgage Pre-Approval

What Documentation Do I Need To Provide for Mortgage Pre-Approval?

Last month we covered the importance of obtaining a pre-approval. During this process your lender may require documentation to verify different financial factors. Some of these may include your income, debt, assets and more. It is best to prepare these documents ahead of time to avoid any delays in the home buying process. Today we will cover some of the most common documents your lender may request.

 

W-2 Employment and Income History

  • Check Stubs
  • W-2s

One month minimum of verified income is required. You can provide this verification with paycheck stubs. Usually, your most recent W-2 Form will also be required. Some borrowers may be required to provide the most recent two years of W-2's.

 

Self-Employment and Income History

  • Personal and business tax returns
  • Profit and loss statements

If you are self-employed, gather all pages of your personal and business tax returns. Be prepared to also submit a current-year profit and loss statement. Your lender may require further documentation such as a balance sheet. This varies with each situation, but your lender should be able to clarify how much detail they need.

 

Your lender will also obtain a transcript of your tax returns from the IRS. They will require this to compare it with the documentation you provided them and to prevent fraud.

 

Complete List of Assets

  • Bank statements
  • Mutual fund statements
  • Brokerage statements
  • Real estate titles
  • Automobile titles

These documents will be requested to document all money-related assets. Your bank statements will be reviewed to verify the amounts and availability of your down payment funds. Your lender may request two to four months of statements from each account. Other assets may strengthen your loan application by showing reserves. This can be seen as a compensating factor.

 

Complete List of Debts

You can document your debts ahead of time, but this is actually one of the easier steps during this process. Your lender will have to pull a credit report on your behalf. This will provide the information needed to verify credit card debt, installment loans, car loans, and more. If possible, ask for a copy of your report to ensure everything is reporting correctly.

 

What If My Credit Doesn't Qualify for Mortgage Pre-Approval?

Do you think your credit does not qualify or meet your lenders minimum requirement? If so, we encourage you to consult with a credit expert like MSI Credit Solutions to learn about your options. MSI Credit Solutions leverages your consumer rights by working on your behalf. MSI's process will assist you with removing questionable negative items from your credit report, resulting with an increase to your credit scores. Contact us today at 866-217-9841 for your free credit consultation.

 

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MSI Credit Solutions provides superior credit restoration and comprehensive consulting services that are reliable and affordable. For any questions or to schedule a free credit consultation, contact us at (866) 217-9841.

 *The information in this article has been provided strictly for educational purposes.

 

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  1. […] month we covered the important documents to prepare for the home buying process. By this point you should have a pre-approval and should be […]

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