Getting Pre-Approved and Applying For a Loan

Prior to starting to look for your new home we will recommend that you get a lending pre-approval (unless they plan to purchase with cash).

These are the things you need to supply to your lender to get a quick approval using alternate documentation

Income Items

W2 forms for the last two years
Pay stubs covering a 30 day period
Federal tax returns (1040s) for the last two years, if:
- you are self-employed
- earn more than 25% of your income from commissions or bonuses
- own rental property
- or are in a career where you are likely to take non-reimbursed business expenses
Year-to-Date Profit and Loss Statement (for self employed)
Corporate or partnership tax returns (if applicable)
Pension Award letter (for retired individuals)
Social Security Award letters (for those on Social Security)

Bank statements for previous two months (sometimes three) on all accounts. All pages.
Statements for two months on all stocks, mutual funds, bonds, etc.
Copy of most recent 401K statement (or other retirement assets)
Explanations for any large deposits and source of those funds
Copy of HUD1 Settlement Statement on recent sales of homes
Copy of Estimated HUD1 Settlement Statement if a previous home is for sale, but not yet closed
Gift letter (if some of the funds come as a gift from a family member)
Gifts can also require:
- Verification of donor’s ability to make the gift (bank statement)
- Copy of the check used to make the gift
- Copy of the deposit receipt showing the funds deposited into bank account or escrow

Landlord’s name, address, and phone number (for verification of rental)
Explanations for any of the following items that may appear on your credit report:
- Late payments
- Credit inquiries in the last 90 days
- Charge-offs
- Collections
- Judgments
- Liens
Copy of bankruptcy papers if you have filed bankruptcy within the last seven years

Copy of purchase agreement (if you have already made an offer)
To document receipt of child support (if you desire to show it as income)
- Copy of Divorce Settlement (to show the amount)
- Copies of twelve months canceled checks to document actual receipt of fund