Credible
Get Rates
  • Refinance Student Loans
    • Compare Options
      • Best Refinancing Companies
      • Lender Reviews
      • Refinance Student Loans
      • Student Loan Consolidation
    • Learn the Basics
      • Fixed vs. Variable Rates
      • Forgiveness Programs
      • Consolidation vs Refinancing
      • Repayment Plans
      • More on Student Refi
    • How to
      • Consolidate Your Student Loans
      • Pay Off Your Student Loans
      • Lower Your Interest Rate
    • Tools
      • Current Student Loan Refi Rates
      • Refinancing Calculator
      • Repayment Calculator
      • Student Loan Score Calculator
  • Student Loans
    • Compare Options
      • Private Student Loans
      • Parent Student Loans
      • Law School Loans
      • Medical School Loans
      • Graduate Student Loans
    • Learn the Basics
      • Student Loan Limits
      • Living Expenses
      • Applying for FAFSA
      • Federal Student Loans
      • Student Loan Interest Rates
      • More on Student Loans
    • How To
      • Pay for College
      • Take Out Student Loans
      • Apply Without Cosigner
      • Apply for Student Loans
      • Pay for Grad School
    • Tools
      • Best Private Student Loans
      • Current Student Loan Rates
      • Student Loan Interest Calculator: Estimate Payments
      • Lender Reviews
  • Personal Loans
    • Compare Options
      • Best Personal Loan Lenders
      • Lender Reviews
      • Get Personal Loan Rates
    • Learn the Basics
      • How to Qualify
      • How to Get a Loan
      • Where to Get a Loan
      • Personal Loans with Cosigner
      • Pay Off Credit Card Debt
      • More on Personal Loans
    • Best for
      • Credit Card Consolidation
      • Debt Consolidation Loans
      • Home Improvement Loans
      • Good Credit
      • Fair Credit
      • Bad Credit
    • Tools
      • Current Personal Loan Rates
      • Personal Loan Calculator
  • Mortgages
    • Compare Options
      • Mortgage Refinance
      • Home Loan
      • Best Mortgage Refinance Companies
      • Best Mortgage Lenders
      • Mortgage Preapproval
      • Mortgage Payment Calculator
    • Compare Rates
      • Mortgage Refinance Rates
      • 30-Year Fixed Refinance Rates
      • 15-Year Fixed Refinance Rates
      • Home Loan Rates
      • 15-Year Fixed Mortgage Rates
      • 30-Year Fixed Mortgage Rates
    • Learn the Basics
      • How to Buy a House
      • How to Refinance Your Mortgage
      • How to Get the Best Rate
      • Cash-Out Refinancing
      • More on Home Loans and Refi
    • Pay Off Mortgage
      • Home Equity to Pay Off Debt
      • Paying Off Mortgage Early
      • Mortgage Refinance Cost
  • Insurance
    • Insurance Products
      • Insurance Products
      • Learn more about home insurance
    • Compare Options
      • Compare Insurance Quotes
      • Home Insurance Guide
    • Learn the Basics
      • What Home Insurance Covers
      • How Much Home Insurance You Need
      • Estimate Your Home Replacement Cost
      • How to Change Home Insurance
  • Company
    • About
    • Reviews
    • Blog
    • Lenders
    • Editorial Guidelines
    • FAQs
    • Press
  • Find My Rate
Advertiser Disclosure

Your Mortgage Pre-Approval Checklist: Every Document You’ll Need

When trying to secure a mortgage pre-approval, your lender will want to verify your assets, income, employment, and special financial situations.

Kim Porter Kim Porter Edited by Chris Jennings Updated October 12, 2021

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. By refinancing your mortgage, total finance charges may be higher over the life of the loan.
Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."

Before you shop for a home, it’s a good idea to get a mortgage pre-approval. While not required, this will help you establish a homebuying budget, strengthen your purchase offer, and prepare you for the official mortgage application later on.

There’s a stack of documents needed for a mortgage pre-approval, which a lender will use to verify your financial health.

Find out what documents are required so that you can start shopping for your dream home sooner:

  1. Identification
  2. Income verification
  3. Debt statements
  4. Proof of assets
  5. Other documents

1. Identification

Why it matters: Checking your ID helps the lender verify your identity and prevent fraud.

Everyone on the home loan will need to show a government-issued ID. Acceptable forms of identification can include:

  • Driver’s license
  • Social Security card, or individual taxpayer identification number (ITIN)
  • Passport
  • State- or federal-issued ID card

2. Income verification

Why it matters: Lenders use these pre-approval documents to go over your income from the past two years and verify your ability to repay the mortgage. The documents you need depend on where you receive income.

For salaried employees

If you work for an employer, it should be relatively easy to get these pre-approval documents:

  • W-2 forms from the past two years
  • Pay stubs from the past 30 days
  • Two most recent bank statements
  • Personal tax returns from the past two years
  • Your most recent end-of-year pay stub if your income includes overtime or bonuses

For freelancers and independent contractors

Self-employed borrowers don’t receive W-2 forms or pay stubs from an employer, so they’ll need to produce the following pre-approval documents to show they’ve earned a steady income for at least the past two years:

  • Business and personal tax returns from the past two years
  • A copy of current state or business licenses, if applicable
  • IRS Form 4506-T, which allows lenders to access your tax records
  • A profit-and-loss statement
  • A balance sheet
  • Asset account statements, such as retirement or investment accounts
  • Any additional income, such as Social Security or disability

For landlords and investors

If you rent out an investment property, your tenants’ rent payments can count toward your income. This can help you qualify for the new mortgage.

For documentation, you’ll need to provide a current lease that shows the rent amount.

Credible’s pre-approval process is quicker than most — it takes just a few minutes — and can help you compare prequalified rates from all of our partner lenders conveniently online.

Credible makes getting a mortgage easy

  • Instant streamlined pre-approval: It only takes 3 minutes to see if you qualify for an instant streamlined pre-approval letter, without affecting your credit.
  • We keep your data private: Compare rates from multiple lenders without your data being sold or getting spammed.
  • A modern approach to mortgages: Complete your mortgage online with bank integrations and automatic updates. Talk to a loan officer only if you want to.

Find Rates Now

Trustpilot

Check out: How Long Does It Take to Get Pre-Approved for a Mortgage?

3. Debt statements

Why it matters: During the pre-approval process, the lender will calculate your debt-to-income ratio. To get an accurate reading, they’ll need to see your most recent billing statements from any loans or credit cards with a balance.

Your DTI ratio helps the lender determine whether you’ll qualify for the mortgage and how much you can afford.

A lower DTI ratio is desirable, but requirements vary with each loan type. Here’s what mortgage lenders will generally want to see:

Loan typeFront-end DTIBack-end DTI
FHA31% to 33%43% to 45%
USDA29%41%
VAN/A41%
(but lenders are free to go higher)
Conventional36%45%

Look for your most recent statements if you have outstanding debt, which might include:

  • Auto loans
  • Student loans
  • Other types of installment loans
  • Tax liens
  • Credit card statements

Learn More: 10 Ways to Pay Off Debt Fast

4. Proof of assets

Why it matters: These pre-approval documents show the lender that you have enough money to cover the down payment, closing costs, and cash reserves.

Lenders will want to look at the following assets when you apply for your pre-approval:

  • Bank statements: Two months’ worth of bank statements for each account whose assets you’ll use for the loan
  • Retirement and brokerage accounts: Two most recent statements from retirement and investing accounts, such as IRAs, 401(k)s, and CDs

Learn More: Why Mortgage Lenders Need Bank Statements to Approve Your Loan

5. Other documents

Why it matters: If you rely on other sources of income or you have a special financial situation, you’ll need to show documentation to support your mortgage pre-approval.

Some examples of other documentation a lender might request include:

  • Rent history: If you’ve been renting your home, you’ll need to show rent payments from the past 12 months — typically in the form of canceled checks — along with contact information for your landlord.
  • Divorce decree or court order: If alimony and child support payments make up a large part of your income, you’ll need to show a copy of your divorce decree and/or relevant court orders.
  • Bankruptcy and foreclosure: After certain negative credit events, you might need to honor a waiting period before you can take out a new mortgage. If you’ve filed for bankruptcy or foreclosure in the past few years, ask your lender about the waiting period and what documents you need for a mortgage pre-approval.
  • Down payment gift letters: In some cases, borrowers can use gift funds for the down payment or cash reserves. The person giving you the money will likely need to provide bank statements to show where the money originated. Then, they’ll need to sign a letter saying the money isn’t a loan. Depending on the lender, this might not be required for a pre-approval — but it will be part of the paperwork needed for a mortgage.

Credible makes it easy to secure a pre-approval letter from our partner lenders, and it takes just minutes.

Traditional lendersCredible
How long does it take?1 to 3 days3 minutes
Credit checkHard credit pull
(negative impact on your credit)
Soft credit pull
(no impact on your credit)
Online processTypically minimal; instead processed via in-person visit at a branch or phone call with a licensed loan officer100% online
Compare multiple lenders?No, visit multiple lenders to receive multiple pre-approval lettersYes, pre-approved across multiple lenders at once
Multiple pre-approval letters to make additional property offers?No, must submit another request to lender for new pre-approval letterYes, generate additional letters instantly with a customized loan amount

Ready to get pre-approved through Credible?
Generate a pre-approval letter instantly

Start Now

Learn More:

  • How to Get a Streamlined Pre-Approval Letter With Credible
  • Mortgage Pre-Approval vs. Prequalification: Which Should You Get?
  • Does Mortgage Pre-Approval Affect Your Credit Score?
About the author
Kim Porter
Kim Porter

Kim Porter is an expert in credit, mortgages, student loans, and debt management. She has been featured in U.S. News & World Report, Reviewed.com, Bankrate, Credit Karma, and more.

Read More

Home » All » Mortgages » Your Mortgage Pre-Approval Checklist: Every Document You’ll Need

Mortgage Pre-Approval


  • Mortgage Pre-Approval Guide
  • Documents Needed for Pre-Approval
  • Pre-Approval vs. Prequalification
  • Get a Streamlined Pre-Approval Letter

How to Qualify for a Mortgage

  • Mortgage Qualifications
  • Debt-to-Income Ratio
  • Credit Score
  • Down Payment

Tools and Resources

  • Get a Home Loan
  • Today’s Mortgage Rates
  • Find the Best Mortgage Lender
  • Lender Reviews

  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to email a link to a friend (Opens in new window)

Related Articles

Mortgage Refinance

10 Best FHA Streamline Refinance Lenders June 2022

Mortgages

How Much a $350,000 Mortgage Will Cost You

Mortgages

What Is a Mortgage? Everything to Know About Home Loans

  • Read More
    • Refi Student Loans
    • In School Loans
    • Personal Loans
    • Mortgages
    • Insurance
  • Resources
    • Lender Reviews
    • Loan Calculators
    • Student Loan Score Calculator
    • Data Insights
    • Debt Statistics
    • Sitemap
  • Compare
    • Student Loan Refinance
      • Current Student Loan Refi Rates
    • Student Loan Consolidation
    • Private Student Loans
      • Current Student Loan Rates
    • Personal Loans
      • Current Personal Loan Rates
    • Refinance Mortgage
      • Mortgage Refinance Rates
        • 15-Year Fixed Refinance Rates
        • 30-Year Fixed Refinance Rates
    • Home Loans
      • Home Loan Rates
        • 15-Year Fixed Mortgage Rates
        • 30-Year Fixed Mortgage Rates
    • Insurance
  • Top Lenders
    • Best Student Loan Refi Companies
    • Best Private Student Loans
    • Best Personal Loans
    • Best Mortgage Lenders
    • Best Mortgage Refinance Companies
  • Company
    • About
    • Reviews
    • Blog
    • Editorial Staff
    • Editorial Guidelines
    • News
    • Press
  • Legal
    • Terms of Use
    • Privacy Policy

© 2022 Credible


Credible Operations, Inc. NMLS ID# 1681276 | NMLS Consumer Access | Licenses and Disclosures
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Disclosure

Affiliated Business Arrangement Disclosure

Credible Operations, Inc., (“Credible”) has a business relationship with Young Alfred, Inc., (“Young Alfred”), an insurance broker. Please click here for the full Affiliated Business Arrangement disclosure form. You are not required to use Young Alfred as a condition for settlement of your loan.

Similarly, Young Alfred has a business relationship with Credible, a mortgage broker. Please click here for the full Affiliated Business Arrangement disclosure form. You are not required to use Credible as a condition to obtain access to any settlement services, such as homeowners or other insurance products.

Acknowledgement

By clicking “Accept” below, I/we acknowledge that I/we have read the applicable full disclosure form, and understand that any referrals by Credible for insurance settlement services or any referrals by Young Alfred for mortgage settlement services, may result in Credible, Young Alfred, its parent company, and/or its affiliates receiving a financial or other benefit.