What Documents Do You Need for Mortgage Pre-Approval?

To start the mortgage pre-approval process, you’ll need to provide your lender with several documents that prove your identity, credit history, employment and income history, cash reserves, and current debts. Your lender requires these documents to evaluate your creditworthiness and lending risk to determine whether you qualify for a pre-approval and under which terms. 

Below is a list of documents needed for mortgage pre-approval:

Credit report

Your credit report and history play a vital role in mortgage pre-approval and final approval, as they demonstrate your creditworthiness and how you manage your debt obligations. Your lender will request permission to conduct a soft or hard inquiry to get a comprehensive view of your past loans, current credit card balances, payment history, and credit score. 

Identification

Lenders typically require a driver’s license and social security number for identification purposes. However, you can also use the following:

• Individual Taxpayer Identification Number (ITIN)
• A passport
• State or federal-issued ID card

Always be sure that the information on your identification documents is current and that your primary ID has not expired.

Proof of employment and income

Next, lenders must verify your employment and ability to repay the home loan to qualify you for mortgage pre-approval. The employment and income documents required will vary slightly, depending on the type of income you receive, such as a salary, self-employment income, disability, pensions, and so on. 

For salaried employees:

• W-2 forms from the past two years
• Pay stubs from the past three to six months
• Banking statements from the past two to three months
• Form 4506-T to request tax return information
• Employment verification from your employers
• Most recent end-of-year pay stub (if your income includes overtime and bonuses)

For self-employed (freelancers and contractors):

• Business and personal tax returns from the past two years
• A copy of your current state or business license, if you have either
• Business financial records and balance sheets
• IRS Form 4506-T (this form allows lenders to access your tax records legally)
• Profit-and-loss statements
• Asset account statements (investment, savings, and retirement accounts)

Additional proof of income (if applicable):

• Child support (with court decree to verify the amount and duration of payments)
• Spousal support (with court decree to verify the amount and duration of payments)
• Disability
• Pension
• Social security

Upon discussing your financial circumstances and type of employment, your lender will provide you with a list of the required documents. 

Proof of assets

Your lender will also ask for copies of your asset statements to confirm that you have sufficient funds to finalize the home purchase and verify the origin of those funds. These assets typically include:

• Cash reserves and savings: To verify, you’ll need to provide bank statements from most recent 60 days, including all pages — even those that look non-essential.
• Down payment gift funds: If someone is gifting you money as part of your down payment, you’ll need to provide a signed gift letter from the gift giver, along with the gift giver’s bank statements, to verify their ability to make the gift.
• Non-traditional savings funds: You’ll need statements from other types of savings accounts, such as retirement, IRAs, 401(k)s, and CDs, and mutual funds
• Stocks and investments: You’ll also need statements from financial accounts, such as a brokerage, mutual fund, and investment loans, like bonds.

Some lenders may also accept non-liquid assets, such as real estate, vehicles, art, jewelry, and other proof of assets you can use as collateral for financing your home loan.

Debt statements

Lenders will also calculate your debt-to-income ratio (DTI) to ensure you fall within the 36%-45% lending threshold. DTI measures your current debt obligations and monthly income, demonstrating how you manage your debts and how much more debt you can comfortably afford without the risk of default.

Lenders typically require statements from the past two months for any recurring loan payments, such as car loans, student loans, credit cards, and other types of monthly payments.

Additional documents for special circumstances

Rental history and references

If you’re currently renting, your lender will likely request references from your current landlord and documentation of your rent payment history. If you recently rented elsewhere or move frequently, your lender will likely require multiple references and documented payment histories.

Court decree 

A court decree is court-ordered documentation regarding all familial obligations post-separation. This includes child support, spousal support, custody, and alimony. Whether you pay or receive anything within a court decree, your lender will require a copy of the official statement.

Bankruptcy or foreclosure

Bankruptcy and foreclosure are considered significant credit discrepancies. There are some exceptions that may apply for a mortgage pre-approval with a bankruptcy or foreclosure. However, typically you’ll need to wait for the bankruptcy or foreclosure to fall off your credit report. The lender will want to verify the cause and significance of this type of event to determine your likelihood of repaying your loan on time.

It typically takes less than a day for a lender to review all your mortgage pre-approval documents. Once you’re pre-approved, you can confidently start shopping for a home. If you’re not quite ready to get pre-approved, start by checking how much you’re pre-qualified to borrow to get an estimate of affordability. At Zillow Home Loans*, you can get pre-qualified with us in as little as five minutes, with no impact on your credit score.

*An equal housing lender. NMLS #10287