Pre-qualification is a determination of the loan amount you’re likely to receive. It is not a guarantee of approval. To obtain pre-qualification, you usually are interviewed by a licensed loan officer who determines the pre-qualification amount. You will be issued a letter with this information that you can present when making an offer on a home. It’s important to understand that pre-qualification does not imply any obligation from the lender that you will be approved.

Pre-approval is more thorough than pre-qualification. To be pre-approved, you must submit an application and verify your credit and financial history. After you receive your pre-approval certificate, you’re in a stronger position to close earlier and negotiate a better price. It’s highly recommended that you seek pre-approval if you are shopping for a home.

• Proof of Income – Find and make copies of your pay stubs.
• Tax Information – Gather your W-2s, 1099s, and tax returns for the last 2 years. If you’re self-employed or an independent contractor, you’ll be required to provide your 1099-MISC information.
• Credit Details – We’ll perform a credit check when you apply.
• Debt Documentation – You’ll be required to provide documentation on your outstanding financial commitments. Gather materials on your current mortgage, car loans, student loans and any other debts.

• Form 1003 — The residential loan application — including the attached Fair Lending notice, loan info sheet, and credit authorization. Note: Do not use whiteout on this paperwork. Mistakes should be crossed out and initialed.
• Copies of W-2s or tax returns for the previous 2 years.
• If you own rental units, provide the most recent rental agreement and tax returns for previous 2 years.
• Your last 3 bank statements along with the most recent statements for any mutual funds, IRA/401(k), or stock accounts.
• Settlement agreement and divorce decree (if applicable).
• Letter explaining how you plan to utilize refinance proceeds if you’re seeking a cash-out refinance.
• Non-U.S. citizens must present their Green Card or H-1 or L-1 visa.
• If you’ve filed for bankruptcy, present a schedule of creditors, discharge notice, and filing.
• If you’re applying for a second loan, include the first mortgage note.

These documents may not be all-inclusive, but by having these on hand, you will expedite the application.