Pre Approval -
Getting pre approved or approved means going to the bank, submitting all your paperwork.
Bank will take a few days then tell you how big of a loan they can give you.
Paperwork required -
-Paystubs - at least the last 2 or 3 paystubs, verify employment and income.
-Credit report - the bank will pull the credit report, by law they have to give you a copy of it.
-Government issued Identification- the bank wants to make sure they are lending to the right individual.
-Social security Card.
-Last 2 months bank statements.
-Tax returns for the last year.
-Investment accounts statements.
-List of all monthly expenses.
-Landlord references- Bank wants to make sure you pay on time.
-Gift letter - any money you are getting has to be reported as a gift.
The pre approval letters from banks typically last for 60-90 days. It will give you a solid idea of how big a mortgage you can get according to your finances. It will make you a more attractive buyer when you are in the market for a property.