Finance Friday - What documents do I need to do to get pre-approved?

When getting ready to buy a home, the common misconception is to go directly to a realtor. In this instance, the realtor has no idea how much house you can afford or if you are qualified to buy. On the other hand, you may have done a mortgage payment calculator on a website, but that will not give you accurate information as there are many rules to income calculation, which I will cover another time. The best thing to do, when getting ready to buy a home is go directly to a mortgage lender. After speaking with a lender, he/she can give you the most accurate estimate of how much home you can afford. Once you are pre-approved you are now able to start accurately looking at homes you know you can afford. Now to get pre-approved, there is a basic list of documents that mortgage lenders need to review in addition to your credit report. Please see the list below:

Most common documents needed:

• Most recent mortgage statement (if you own a home)

• Consecutive Pay-stubs

• 1 if you are paid monthly

• 2 if you are paid semi-monthly

• 3 if you are paid bi-weekly

• 5 if you are paid weekly

• W2/1099

• Two most recent years

• Tax Returns

• Two most recent years

• If you are a business owner, we need to business returns and K-1s

• Bank statements

• Two most recent months' statement for checking and savings

• Investment/Retirement

• Most recent quarterly statement

Additional possible documents needed to review:

• Divorce decree/Separation agreement

• Child support documents

• Social security/disability awards letter

• Bankruptcy Petition and Discharge papers

• Tax Lien documents

• VA Buyers Only

• DD214

• Certificate of Eligibility

If you have any questions about loan programs or getting pre-qualified, you can connect with me via email: themattnadergroup@baycapitalmortgage.com or by phone 443-716-1237.