Beyond saving you time, having a pre-approval letter in hand when you’re looking at houses can make you a more attractive buyer to the seller. That’s because pre-approval is proof that not only can you afford the house, but you’re serious about going through with the purchase.

Which documents do you need to get pre-approved?
Identification
We need to verify that you are who you say you are. Your loan officer does this by reviewing identification documents for you and everybody else on the loan. Acceptable identification documents include:

Driver’s license
Passport
Social Security card
Individual taxpayer identification number
A state-issued or federally issued identification
Income verification
Income verification is another important component of getting pre-approved for a loan. For a salaried employee, the required documents are:

Pay stubs from the last 30 days
W2 forms from the last two years
Personal tax returns from the last two years
Your two most recent bank statements
If you also received overtime pay or bonuses, you’ll need to provide statements for these as well.

Being self-employed does not mean you can’t qualify for a mortgage. You absolutely can! And to verify your income as a self-employed person, your loan officer needs to see:

The last two years’ business and personal tax returns
If applicable, copies of current business licenses
IRS Form 4506-T
A balance sheet
A profit and loss sheet for the business
Additionally, you might need to provide retirement and investment account statements. If you receive income through Social Security or disability payments, you’ll also need to provide statements for these.

If you also receive rental income from an investment property, you can use this to qualify for a loan. Provide a copy of all current leases and their rental amounts to include this income.

Debt statements
Debt statements are the documents a lender uses to calculate your debt-to-income ratio (DTI). These are all the documents that state how much money you currently owe, like:

Auto loans
Tax liens
Student loans
Credit card statements
All other installment loans
Proof of assets
You also need to prove that you can afford to cover all the costs associated with your purchase, like the down payment, closing costs and maintaining the required cash reserves. These documents include:

Bank statements for every account you’ll be using for the loan (usually two months’ worth of statements)
Recent statements for all retirement and brokerage accounts