813.910.8020 Apply Now

Mortgage Broker Tampa, FL | Mortgage Lender Tampa Florida | Marimark Mortgage

  • Home
  • Homebuyers
  • Homeowners
  • Realtors
  • Investors
  • About Marimark
  • Contact Us
  • Mortgages
  • Apply Now
  • Current Mortgage Rates
  • Calculators
  • Testimonials
  • Blog
  • Videos
  • Featured In
Home / Blog / Mortgage Pre-Approval / Documents Needed for a Pre-Approval Letter

Documents Needed for a Pre-Approval Letter

April 17, 2023 By Admin

Pre-Approval Documents Needed

Getting pre-approved for a mortgage is an excellent way to begin your househunting journey. Although it may not be required, you’ll be more successful buying a home with a mortgage pre-qualification, especially in a competitive homebuying environment.

A pre-approval letter proves to sellers that you’re a legitimate buyer with the finances to purchase the home. Moreover, you can narrow your search because the pre-approval lets you know the price range of the property you can afford.

Related: Top Things You Should Know About a Mortgage Pre-Approval

Required Documents for a Mortgage Pre-Approval Letter

The documents you’ll need for a pre-approval letter contain information about your financial position. But other documents may also be required depending on your job, the loan you’re applying for, and the type of property you wish to purchase.

Below is a checklist of the documents for a mortgage pre-approval letter.

Personal ID

The lender needs proof of your identity, so you’ll have to provide any valid, state- and federal-issued identification card with a photo, such as:

  • Driver’s license.
  • Individual taxpayer identification number (ITIN).
  • Social Security card.
  • Passport.

This requirement ensures you are who you say you are and prevents identity theft.

Proof of Income

These documents are needed to verify your income source and job type. They also provide information on your length of employment and how you’re getting paid. These documents include the following:

  • Recent pay stubs.
  • W-2 forms (previous two years).
  • Latest bank statements from each bank you’ve used.
  • Personal tax returns (previous two years).
  • Latest end-of-year pay stub, if you’ve included overtime pay and bonuses into income.

For self-employed, freelancers, or independent contractors who don’t get W-2 forms or pay stubs from employers, they’d have to submit the following:

  • Profit and loss statement.
  • If applicable, a copy of the business or state license.
  • Internal Revenue Service (IRS) Form 4506-T for tax records.
  • Asset account statements.
  • Other documents showing your income information, such as Social Security.
  • For owners or landowners of rental properties, documentation for ongoing leases, current market and lease value of the properties, rental income, and addresses.
  • Form 1099.

The lender will need the information provided by these documents. You can also request copies of your tax transcripts and tax returns from the IRS if necessary. If a tax professional helps you, you can also get a copy from them.

Investment Account Statements

Since you may have other sources of income, you’ll have to show your lender other assets and income and where you keep them. Lenders will require an applicant’s investment account statements for review. You’ll need to provide them with statements from:

  • 401(k).
  • 403(b).
  • IRA.
  • Stocks, bonds, and mutual funds.

Get at least two months of statements from your IRA, stocks, bonds, and certificates of deposit (CDs). And the latest quarterly statement from your 401(k) as well.

List of Debts

Lenders also need information about how much of your income goes toward debt payments. They’ll check your debt-to-income (DTI) ratio and review your debt situation. Monthly expenses, like utilities, groceries, and others, are variable. These expenses don’t fall under DTI. Other regular and recurring costs do, such as the following:

  • Credit cards.
  • Insurance.
  • Medical bills.
  • Car loans.
  • Homeowners Association (HOAs) fees.
  • Personal loans.
  • Student loans.
  • Rent or mortgage.

You should also include relevant information like monthly minimum payment, balance due, creditor, and contact information.

References from Landlord/Rental Information

Lenders will want to know whether your payments are on time if you pay a monthly mortgage. Likewise, if you rent, you must show that your rent payments are prompt and up-to-date. Lenders will also want your previous landlords’ contact information. Finally, they’ll want to check if you’ve kept up with your responsibilities as a renter.

Gift Letters

Certain gifts should also be included, for instance, if someone close to you gives you money substantial enough to be used as a down payment. You’ll have to prove that the money isn’t a loan you’ll have to repay. If it is, the loan must be added to your debts.

There are rules about certain gifts and from whom you can receive them. Many lenders, for instance, will only consider money from family members as gifts. On the other hand, Federal Housing Authority (FHA) loans permit donations from family members, first-time home buyer programs, labor unions, and employers.

You’ll need to submit a gift letter to prove that the gifts you’ve received are indeed gifts and not loans. Gift letters assure the lender that the funds you’ve received aren’t loans but gifts. The person from whom the gift came must write the gift letter.

Typically, a gift letter includes the following:

  • Donor’s personal information, like name, nature of the relationship to the recipient, and contact information.
  • Name and contact details of the recipient.
  • Amount of the gift.
  • Date when the gift was received.
  • How the recipient used or will use the gift.
  • Confirmation that the gift isn’t a loan and does not need to be repaid.
  • Both the recipient’s and donor’s signatures.

Takeaway

Although not required, homebuyers need a mortgage pre-approval letter to show sellers they have the finances to purchase the home. So in almost all instances, effectively searching for a home to purchase requires the buyer to have a mortgage pre-approval letter.

Marimark Mortgage

Marimark Mortgage is based in Tampa, Florida and serves the mortgage needs of homebuyers, homeowners, and investors in Florida, Virginia, and Pennsylvania.

We specialize in conventional home mortgages, FHA, VA, and USDA mortgage options, refinance loans, and reverse mortgages. We’ve worked extensively with cash-out refinancing and help clients to lower their monthly mortgage payments.

To get started with a mortgage to buy your next home, please fill out our Quick Mortgage Application, or contact us direct.

Opt In Image
Stay Informed, It's Your Money
Marimark Mortgage Newsletter

The Marimark Mortgage Newsletter will keep you informed with important events in the mortgage industry that could impact your finances.

We especially focus on ways to save money on your current and future mortgages. And, we continually share the information we share with our clients, because we believe informed consumers are the best consumers.

Real estate agents, and other professionals in the industry, will receive an ongoing wealth of information that will help them serve their clients.

Thank you for signing up!

Filed Under: Mortgage Pre-Approval

Opinions, estimates, forecasts and other views contained in this page do not necessarily represent the views of Marimark Mortgage or its management and should not be construed as an offer to provide financing at the rates or terms mentioned. Due to market fluctuations, interest rates are subject to change at any time and without notice. Interest rates are also subject to credit and property approval. Although Marimark Mortgage attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. Information from this page may be used with proper attribution.

Save with a Mortgage from Marimark

Whether you are buying a home or refinancing, you can save with a mortgage from Marimark Mortgage!

    Search

    Post Categories

    Testimonials

    Refinancing with Mary an absolute pleasure

     
    Refinancing with Mary has been an absolute pleasure. I have never been through the process before and she took the time to explain each step. She was prompt (had a rate locked in right away) and most importantly always answered the phone or emails almost immediately! The communication line alone made the refinancing process every bit worth it. Would recommend to anyone, and will be back for any future purchases! Bret Brennan, March 2021
    See More Reviews
    Marimark Mortgage LLC
    5327 Primrose Lake Circle
    Tampa, FL 33647-1328
    (813) 910-8020
    (866) 910-8020

    Accessibility
    Privacy Policy
    Terms of Service
    Sitemap

    Reviews

    Website Testimonials
    Google Reviews
    Zillow Reviews
    Trulia Reviews
    Facebook Reviews
    Yelp Reviews
    BBB A+ Rating

    FOLLOW US

    • ‎
    • ‎
    • ‎
    • ‎
    • ‎
    • ‎
    Marimark Mortgage is a BBB A+ Accredited Business

    Recent Posts

    • Top Home Loans for Single Moms
    • Documents Needed for a Pre-Approval Letter
    • FHA Announced a 30-Basis Point Reduction to Annual Mortgage Insurance Premiums
    • How Can You Improve Your Credit Score?
    • Historical Mortgage Rates From The 1970s

    © 2023 Marimark Mortgage, LLC All Rights Reserved. | Internet Marketing by Image Building Media. | RSS Feed

    Reviews / Recommendations: Google, Zillow, Trulia, LinkedIn, Facebook, Yelp, BBB

    Licensed in Florida by the Office of Financial Regulation, Mortgage Lender License #MLD77.
    Licensed in Virginia by the Virginia State Corporation Commission, License MC#4556.
    Licensed in Pennsylvania by the Department of Banking and Securities, License #40222.
    NMLS#248318 – www.nmlsconsumeraccess.org.