The Facts

• A mortgage pre-approval has three features of which you should be aware. First, a mortgage pre-approval is only valid for an average of 60 to 90 days. If you do not find a home and submit an offer to purchase within this time frame, you will need to go through the process a second time. Second, a mortgage pre-approval does not commit you to using a specific lender. Although it will make the process of final loan approval easier, you are free to use any lender you want. Finally, if the home you choose does not meet lender requirements, there is a chance of loan denial even with a mortgage pre-approval. The best idea is to talk to your lender before getting a start on your pre-approval application and to get a list of items and documentation requirements. In general, you will need personal, employer, income and expense information, usually going back a period of two years. What makes this different from a final loan application is you will not be submitting a purchase contract or other information relating to a home.
  
  

Information Requirements

• Personal information includes your Social Security number, a copy of divorce or separation papers, if applicable, and current mortgage or rental housing information, such as mortgage documents and contact information for your landlord, along with a copy of your lease. Employer information you will need includes names, addresses and telephone numbers, or alternately, a school diploma or transcripts if you do not have a two-year job history. In addition, you will need a complete list of your assets, personal property and creditors, including monthly payment and balance information.
  
  

Supporting Documents

• Documentation helps support income and asset declarations. You will need two recent pay stubs and tax returns for the past two years, or if you are self employed, profit and loss statements. In addition, you also will need bank and investment account statements, including real estate investment statements.
  
  

Considerations

• Depending on the lender you choose, you may be able to start the pre-approval process using an online loan application. However, if you choose this method, the process may take longer. A representative from your bank or lending institution will call and verify your information for accuracy and give you instructions on the documentation you need to either mail in or drop off in person before the process can be completed.