What Documents Do I Need for a Loan Pre-Approval Letter?

After an arduous online search and not much time to spare, you find a house that checks all the boxes. You quickly call your Realtor to get a showing booked asap. You meet her for a tour of the house just a few hours later. The pictures didn’t do this one justice! It is everything you wanted and more. You tell your agent that you want to put an offer in right away. There is excitement in the air in anticipation that this truly could be your forever home.

Then reality hits. Your enthusiasm comes to a screeching halt. Your trusted agent asks you for your mortgage loan preapproval letter. You know the one she asked you about obtaining last weekend? That crucial piece of documentation that she mentioned to you, but you ignored. Oh, THAT!!!? That wasn’t at the top of your priority list. Now you are forced to submit your offer without it being reinforced with the power of a preapproval letter. A sleepless night passes and you receive a call from your agent the following morning. Unfortunately, the seller went with a stronger offer.  

You are filled with remorse and disappointment. You just lost the house you had set your sights on because you neglected to listen to your agent’s advice. One thing you now know for sure is that you’re not going to make the same mistake twice. What do you need to get yourself preapproved, so you don’t miss out on your dream home?

How to Obtain a Pre-Approval Letter

Contact a Reputable Lender

If you do not have a relationship with a loan officer, ask your agent for some names and contact information for a few options. A good start may also be your local bank or credit union. Keep in mind, they may not offer as many loan options as a mortgage broker will offer, but it’s still worth learning your rates and terms. Before you meet a personal banker or loan officer in person, a good place to begin your pre-approval process is right online.

A Few Simple Steps

Your income will need to be verified so make sure you have paycheck stubs readily available.  If you’re not paid in a traditional way, proving your income may be more complicated. Work with your loan officer to get them what they need.

They will also want at least 2 years of tax returns as well.  Be prepared to show your income and assets by means of bank statements and documentation on the value of your investment accounts.

Your credit will be checked, and your rate will have a great deal to do with your credit score. Don’t be dismayed if the credit score you recently viewed on a site like Credit Karma is different than what the lending institution pulls. They have to follow federal guidelines for creditworthiness that are much more stringent than applying for other types of loans. 

There may be other miscellaneous documents that your lender requires to achieve your loan preapproval. Work closely with your loan officer to get the necessary information to them in a timely manner. They are working in your best interests, and it takes diligence and cooperation to make your dreams of homeownership a reality.