Mortgage preapproval is very important when house hunting because it shows the sellers that you are actually able to purchase their home. There are several documents that are needed in order to be preapproved-here is a list of what you will need:
- The last two years of W-2 forms
- Documents showing mortgage or rent payments made for the last year
- Tax returns from the last two years
- Paycheck stubs from last few months
- A list of all assets: auto titles, real estate, investment accounts and bank statements
- Documents of all debts including student loans, credit cards, alimony and auto loans
Tips to keep in mind while preparing to buy a home include not changing jobs if possible, do not miss any debt payments (credit card, auto loan, student loan, etc) and do not make any large purchases, especially ones that rack up your debt.