What Is Mortgage Preapproval?
Mortgage preapproval is a lender’s confirmation that you qualify for a home loan. It determines how much you can borrow and strengthens your offer when making a purchase. Unlike prequalification, which offers a rough estimate, preapproval requires financial verification. Lenders review your income, assets, debts, and credit history before granting approval.
Preparing the right documents in advance can streamline the process. Use this mortgage preapproval checklist to ensure you have everything you need.
Required Documents for Mortgage Preapproval
Lenders require specific financial documents to assess your ability to repay the loan. The table below outlines the most commonly required documents and their purpose.
| Document | Purpose | Notes |
| Personal Identification | Verifies your identity | Driver’s license, passport, or U.S. alien registration card |
| Social Security Number | Confirms identity and pulls credit report | May require a physical Social Security card |
| Proof of Income | Demonstrates ability to afford monthly mortgage payments | Includes pay stubs (past 30–60 days) and bank statements (past 2–3 months) |
| Tax Returns & W-2s | Confirms income stability | Typically requires two years of documents |
| Investment & Retirement Accounts | Shows additional financial assets | 401(k), IRA, stocks, or bonds may strengthen your application |
| Monthly Debts & Expenses | Determines debt-to-income (DTI) ratio | Includes rent, loans, credit card payments, and other obligations |
| Rental History & Landlord References | Proves responsible past housing payments | Recent rent payment history and landlord contact details |
| Gift Letters (If Using Gifted Funds) | Verifies gifted funds are not loans | Must include donor’s name, amount, and statement confirming no repayment required |
| Credit Report & Score | Determines eligibility and interest rate | Lenders handle the credit check, but reviewing your score beforehand helps |
Additional Requirements Based on Borrower Type
Some borrowers may need to provide extra documentation based on their employment status, homeownership history, or loan type.
| Borrower Type | Additional Required Documents |
| Current Homeowners | Recent mortgage statements, proof of home equity, current property tax records |
| Self-Employed Borrowers | Two years of business tax returns, year-to-date profit & loss statements, 60 days of business bank statements |
| VA Loan Applicants | DD Form 214 (for discharged veterans), Statement of Service (for active-duty personnel), NGB Form 23 (for National Guard members) |
Why Preapproval Matters
Getting preapproved before house hunting provides several key advantages:
- Strengthens Your Offer – Sellers take preapproved buyers more seriously.
- Clarifies Your Budget – Knowing your loan amount helps you shop within your price range.
- Speeds Up the Process – Having documents ready can make closing smoother and faster.
Get Preapproved and Start Your Homebuying Journey
Mortgage preapproval is an essential first step in buying a home. By preparing the necessary documents in advance, you can streamline the application process and increase your chances of securing favorable loan terms.
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