Below you will find the documents and information needed to apply for a loan. You may need more documents depending upon the type of loan you are applying for so you will want to talk with your lender about their list of documents.
Credit Score (FICO)
This is one of the main factors in determining if you can qualify for a loan and what interest rate you receive. A lot of loan programs have a minimum FICO score to qualify. In most cases, you will receive a lower interest rate if you have a high FICO score. It is a good idea to check your credit report. Be careful, there are a bunch of “free credit” report sites that bait you to sign up for a paid monitoring service. Go to the Federal Trade Commission’s website to read more about your Free Credit report and get a link to the site where you can get your free report.
Common Documents Needed
- Application Fee (cost of appraisal and credit report) .
- Social Security number of all applicants.
- Complete address for the past 2 years (including complete name and address of landlords for past 24 months).
- Name, address, and all income earned from all employers for past 24 months.
- Copies of previous two years W-2 forms.
- Copy of most recent year-to-date pay stub.
- Name, address, account number, monthly payment and current balance for: installment loans, revolving charge accounts, student loans, mortgage loans, and auto loans.
- Name, address, account number, and balance of all deposit accounts, including: checking accounts, savings accounts, stocks, bonds, etc.
- Three months most recent statements for deposit accounts, stocks, bonds, etc.
- If you choose to include income from Child Support/Alimony bring copies of court records of cancelled checks showing receipt of payment.
Once the lender has all the documents above, they can send it to their processing department and get you pre-approved. This is not the same as a pre-qualification. A pre-qualification is done with just stated information over the phone without providing any documentation. But the lender still needs all of your supporting documentation. But when you are pre-approved, the lender is just waiting on a sales contract signed by the buyer and seller. So to write the strongest possible offer on a home, you will need a pre-approval letter.
This is the final step in the process. Once we submit a sales contract to the lender, the appraisal is ordered. When the lender receives the appraisal, all of your documentation along with the appraisal goes to underwriting where it will either be approved or denied. By going through the pre-approval process before writing an offer, you have a higher chance of the loan being approved.