The Step-by-Step Guide to Getting Pre-Approved
Approved: What Documents You Really Need If you’re thinking about buying a home, getting pre-approved is one of the smartest first steps you can take. A mortgage pre-approval shows sellers that you’re serious, helps you understand your budget, and gives you a head start before you start house hunting. Here’s exactly what to expect — and what you’ll need to provide. What Is Mortgage Pre-Approval? Pre-approval is when a lender reviews your financial information and determines how much you may qualify to borrow. Unlike pre-qualification (which is a quick estimate), pre-approval is more official and backed by documentation. Step 1: Basic Personal Information To begin, you’ll provide: • Full legal name • Social Security number (for credit pull) • Current address and housing history • Employment history Step 2: Proof of Income Lenders want to confirm you have stable income. Common documents include: For W-2 Employees• Last 2 years of W-2s • Most recent pay stubs (last 30 days) For Self-Employed Borrowers • Last 2 years of personal tax returns • Last 2 years of business tax returns (if applicable) • Year-to-date profit & loss statement Other Income Sources • Social Security award letters • Pension statements • Rental income documentation Step 3: Proof of Assets You’ll need to show where your down payment and reserves are coming from. Documents include: • Last 2 months of bank statements • Retirement account statements • Investment account statements Tip: Large deposits may require explanation, so keep records. Step 4: Credit Review Your credit score impacts: • Interest rate • Loan eligibility • Mortgage insurance costsWe’ll review: • Credit score • Monthly debts • Payment history If improvements are needed, we’ll guide you through the next steps. Step 5: Review of Current Debts Lenders look at your debt-to-income ratio, including: • Car loans • Student loans • Credit card payments • Personal loans The goal is to ensure your mortgage payment fits comfortably. Step 6: Pre-Approval Letter Issued Once reviewed, you’ll receive a pre-approval letter outlining: • Approved loan amount • Loan type • Estimated monthly payment range This gives you an advantage when making offers. Common Mistakes to Avoid Before Closing After pre-approval, avoid: • Opening new credit accounts • Making large purchases• Changing jobs without notifying your lender • Moving money between accounts without documentation Get Pre-Approved with Confidence At The Harris Team, we make pre-approval simple, fast, and stress-free. Ready to start? We’ll walk you through every document and every step.