5 Things You Need To Be Pre-approved For a Mortgage

6 THINGS YOU NEED TO BE PRE-APPROVED FOR A MORTGAGE 1 Proof of Income Buyers generally must produce W-2 wage statements from the past two years, recent pay stubs that show income as well as year-to-date income, proof of any additional income such as alimony or bonuses, and the two most recent years' tax returns. Proof of Assets The borrower needs bank statements and investment account statements to prove that they have funds for the down payment and closing costs, as well as cash reserves. 3 Good Credit Most lenders require a FICO score of 620 or higher to approve a conventional loan, and some even require that score for a Federal Housing Administration loan. Employment Verification Lenders want to make sure they lend only to borrowers with stable employment. A lender will not only want to see a buyer's pay stubs but also will likely call the employer to verify employment and salary. Other Documentation The lender will need to copy the borrower's driver's license and will need the borrower's Social Security number and signature, allowing the lender to pull a credit report. Self-Employed buyers According to Fannie Mae, factors that go into approving a mortgage for a self-employed borrower include the stability of the borrower's income, the location and nature of the borrower's business, the demand for the product or service offered by the business, www.dnmortgages.ca %24