If you’re in the market for a new home, it’s important to get pre-approved for a mortgage. This will show sellers that you’re serious about buying and give you an idea of what you can afford. In order to get pre-approved, you’ll need to provide some key documents to your lender. In this article, we’ll discuss the documents you’ll need and how to prepare them. Let’s get started!
1. Tax Returns
One of the first things your lender will ask for is your tax returns from the past two years. They’ll use this information to get an idea of your income and determine how much you can afford to borrow. If you’re self-employed, they may also ask for additional documentation, such as your profit and loss statements. If you don’t have copies of your tax returns, you can get them from the IRS website. It is also important to pursue with a trusted mortgage investment company in Ontario so that you are assured of the best deal and services.
2. W-21 Forms
In addition to your tax returns, you’ll need to provide your lender with W-21 forms for all employed borrowers. These forms show your employer’s name, address, and contact information. They also indicate how long you’ve been employed and what your income is. Your lender will use this information to verify your employment and income. If you don’t have copies of your W-21 forms, you can request them from your employer.
3. Pay Stubs
Another key document you’ll need to provide is your most recent pay stub. This will show your lender your current income and help them determine how much you can afford to borrow. Be sure to include your year-to-date earnings, as well as any overtime or bonuses you’ve earned. If you’re self-employed, you’ll need to provide documentation of your income, such as your profit and loss statements.
4. Bank Statements
Your lender will also need to see your bank statements from the past few months. This is to ensure that you have the funds necessary for a down payment and closing costs. They’ll also use this information to get an idea of your overall financial health. Be sure to include all pages of your statements, even if they’re blank. If you have multiple accounts, you’ll need to provide statements for each one.
5. Asset Statements
In addition to your bank statements, you’ll need to provide asset statements for any investments you have. This includes things like stocks, bonds, and mutual funds. Your lender will use this information to determine your overall financial health and see if you have the funds necessary for a down payment. If you don’t have asset statements, you can request them from your investment company.
To Sum It Up
These are the essential documents you’ll need for a mortgage pre-approval. Be sure to gather all of the required documentation before you begin the application process. This will make it go much smoother and help you get approved for the best loan possible.