Documents You Need to Have For Pre-Approval

You’ve decided to buy a house in Floresville, and you’ve heard that it’s best to get financing pre-approval before you even begin house hunting. That’ good advice for two reasons. First, you will know exactly what price range is within your reach and thus save a lot of time and frustration. And, second, if you’re pre-approved, sellers will take you more seriously and will likely be more willing to enter into genuine negotiations. But before heading off to the bank, there are certain documents you need to have for pre-approval in Floresville.

1. Proof of Employment and Income

Obviously, you will have to show a lender that you are employed and that your income is sufficient for you to make the monthly mortgage payments. The kind of documents you need to have for pre-approval in Floresville will depend on your employment situation and how you get paid. In every case, though, you’ll probably need to provide copies of the previous two years’ income tax returns, both federal and state. Beyond that, you will need:

Salaried and wage earners – Copies of the last few pay stubs and at least the most recent two years’ W-2 forms, as well as records of overtime and bonuses.  At some point in the process the lender will send a form to your employer to verify you are still employed there and your current income.

Self-employed individuals (independent contractors and freelancers) – Profit-and-loss statements and the last few years’ Form 1099. This also includes sole proprietors, partnerships, and S-corporations.

If you have any, you will also need to provide proof of real estate income. For rental property, you will have to provide market value of the property and proof of rental income.

2. Records of Assets

Another of the documents you need to have for pre-approval in Floresville is a listing of assets. For every bank account (checking, savings, money market, and so on) you will need copies of at least 60 days’ worth of statements. In addition, you’ll need the statements for the past two months for all investment accounts – for example, CDs stocks and bonds, and IRAs. In addition, you should be prepared to provide the latest quarterly statement (which shows the vested balance) for any 401 (k)s.  If you have made a large deposit in the last 60 days you will also have to source that money.  To source means you have to approve where the money was obtained.  An example may be a deposit for $5,000 for the sale of a boat;  you will need proof of sale or title transfer paperwork; another is something like sale of craft works or maybe you sold a puppy.

See this real world example:   Sale of a English bulldog puppy

3. List of Monthly Debt Payments

Of course, a lender will want to know how much you pay out each month to cover debts. So you’ll have to provide official records of monthly debt-payment obligations like car loans, other mortgages, student loans, and credit cards. The lender will want you to provide the name and address of each creditor, along with account number, loan balance, and minimum payment.

Also, if you’re currently renting, you will likely have to provide rent-payment receipts for the past twelve months. You should also be ready to provide landlord contact information for probably the past two years.

4. Records of Other Expenditures and Financial Events

Still, other records among the documents you need to have for pre-approval in Floresville are those that document certain life-event expenditures. For example, if you’ve been divorced, you’ll need to be prepared to provide court orders for alimony and child-support payments. And if you have declared bankruptcy or been through a foreclosure process, the lender will need to see the relevant documents.

And here’s a final thought. Lenders will often question you about how you intend to fund the down payment on the house. So keep in mind that you may have to show proof of the sources of money for this purpose.  See above on Record of Assets.

Getting pre-approved for financing depends in large part on the documents you need to have for pre-approval in Floresville. Having done that, then you can embark on your house-hunting journey.

TO DISCOVER MORE ABOUT THE BEST WAYS TO GET PRE-APPROVED, AS WELL AS OTHER FINANCING OPTIONS, YOU CAN CONTACT US BY PHONE AT (210) 216-7722 OR FILL OUT the form below.

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