When a lender preapproves you for a mortgage, it’s saying that, based on the information provided, you’re in a good position to uphold the financial responsibilities of your loan and that you can afford the loan. It also determines how much you’ll get approved for, so it’s important to get one before shopping for a home.

In order to determine whether they should preapprove your mortgage application, the lender will need certain documents to verify your income, job stability and other factors. With everything going on, it can be hard to keep track of it all, so we’re providing you this mortgage preapproval checklist to help keep things in order.

10 Documents Needed For Mortgage Preapproval : here are some standard documents you’ll need for mortgage preapproval. Most of these are standard for all borrowers; however, other documents may be required depending on the type of loan you want to get, the type of residence you wish to buy and the kind of work you do

Personal Identification : The lender will want to make sure they’re lending to the right person – and not someone pretending to be you – so a valid form of identification will be required. It must be government-issued and have a photo. Acceptable forms of ID include a state-issued driver’s license or ID card, passport or U.S. alien registration card.

Social Security Card Your Social Security card is another form of identification that may be requested by your lender. It adds another verification of your identity and helps match your Social Security number with your picture ID to further confirm it’s you who’s getting the loan. You’ll also need to supply your Social Security number to run a credit check.

Bank Statements : Bank statements are required for obtaining preapproval because they help verify your income and show that you can afford your down payment. These statements may also uncover any red flags, like bounced checks, insufficient funds, unstable income, payments to another account and large deposits from unknown sources. You’ll likely be asked for checking and saving account statements for each bank you use for the last 2 – 3 months.

Pay Stubs : Your most recent pay stubs help verify your monthly income and show proof of employment, that you have a stable job. If you’re paid with a physical check, you should have the actual stub, which can be copied and sent to the lender. If you’re paid through direct deposit, your company should have electronic copies of your stubs. You may also be able to request electronic copies from your bank.

Tax Documents : Certain tax documents, including your two most recent W-2 forms, are also among the documents needed for mortgage preapproval. These documents are another way to verify your income and show how much was taken out for tax purposes. You’ll likely be asked to provide W-2s for the last 2 years from current and past employers within that time frame.

Investment Account Statements : Savings and checking accounts aren’t the only places people keep their money – and your job may not be your only source of income. Lenders want to see all of your income and assets and, therefore, will also need to review your investment account statements. These types of accounts include your 401(k), 403(b), IRAs, stocks, bonds and mutual funds.

List Of Monthly Debts : – Rent or mortgage – Car loans – Student loans – Credit cards – Personal loans – Home insurance – Homeowners association fees (HOAs) – Medical bills

Rental Information And Landlord Reference : Lenders want to be assured you’ll make your monthly mortgage payments on time. If you’re a renter, you’ll likely be required to show that you’ve made on-time rent payments in the past. You may also be required to include the names and contact information for the landlords you’ve had in the past. This will help the lender verify that you’ve upheld your financial responsibilities as a tennant. How far back you’ll need to show payments or landlord information may depend on your lender.

Gift Letters : If a loved one gifts you with money to use as a down payment, a gift letter will be required to prove the money is not a personal loan that needs to be paid back. If it was a personal loan, it would add to your DTI and possibly make it more difficult for you to pay back your loan.

A typical gift letter will include: – The donor’s name, contact information and relation to the recipient – The recipient’s name and contact information – The gift amount and date the gift was or will be received – How the recipient will use the gift money – Confirmation that the gift doesn’t need to be repaid – Signatures of the donor and recipient

Credit Report : A credit report is one of the only documents on this mortgage preapproval checklist that you won’t need to provide your lender. They will pull the report themselves once they have your permission to do so.