A pre-approval letter is important for two reasons. It tells you how much money you can borrow and what the general terms are such as when the letter expires (usually 30 days), interest rate and down payment required. It also shows the seller and their REALTOR® that you’re qualified to purchase the property.

You will generally need the following in order to receive a pre-approval letter:

Identification, such as a driver’s license, plus…

Purchase:

  1. W-2’s for the past two years and complete tax returns.
  2. Most recent pay stubs covering last 30 days.
  3. Landlord information.
  4. Last 2 months bank statements of all checking, savings, and asset accounts.
  5. Names, addresses, and account numbers of all creditors.
  6. Certificate of eligibility and I or DD214’s (VA only)
  7. Bankruptcy papers if applicable.
  8. Divorce decree if applicable.

Refinance:

  1. Mortgage Statements
  2. Homeowners Insurance

Of course, the specific documentation needed will depend on the type of loan you’re getting and the lender you’re working with.

Documents Needed for a Pre-approval Letter