Gather Your Paperwork And Be Pre-Approved

Being pre-approved for a home mortgage loan can smooth out the road and get you into your new home efficiently and with as little stress as possible. You can make things even more efficient if you gather the paperwork that is sure to be necessary with a pre-approval. 

Benefits of a Loan Pre-Approval

More and more home-buyers are showing up to look at a home with this important letter in hand. A pre-approval looks good to home sellers, and it is good. It shows that you are a serious buyer who is ready to apply for a loan. It also shows that you stand a very good chance of that loan being approved.

A mortgage loan pre-approval also gives you a lot of useful information. It helps you focus only on homes within the pre-approved price range. A pre-approval is a good thing and so is being ready with the paperwork you will need to give to the mortgage lender.

Gather These Forms to Show Creditworthiness

Make copies of the below forms and assemble them into a folder for your lender:

Proof of Income

Income tax forms for the last several years should be sufficient to prove your income. If you are self-employed, plan to include your Schedule C, 1099's, and more (check with the lender to see what else is needed). You should also include several months' worth of bank statements.

Proof of Employment

Not only is income from the past taken into account but the lender also needs to know if you have the potential to continue making income. Proof of employment might include a letter from your employer, a pay statement, and more. The length of employment is important and will be verified with your employer so give them a head's up.

List of Financial Obligations

Your lender will be deciding how much home you can afford by reviewing your monthly debt obligations. List your monthly debts with the amount you usually pay. Your lender will divide home-related expenses like utilities from other expenses for one calculation. The lender is also looking at the ratio of your debt obligations to your income.


Finally, your lender will need to know about your assets. That includes money in bank accounts, retirement funds, and investment accounts. Also, include any real estate you already own. This allows the lender to view backup sources of money if you should lose your job and be unable to pay your mortgage.

Speak to a local mortgage service, such as AJM Mortgage Inc, to find out more about being pre-approved for a home loan.