Mortgage Pre-Approval Guide

If you’re ready to start house hunting, it’s helpful to get preapproved for a mortgage. This will give you an idea of the loan amount you’ll be approved for, helping determine your budget and demonstrating to sellers that you’re a serious buyer with purchasing power. The preapproval process includes gathering financial documents, checking your credit and applying with a lender like your bank.

Things you’ll need:

Proof of income, like recent pay stubs and W-2 forms or tax returns from the past two years

Proof of assets, including bank and investment statements

A form of identification like your driver’s license or your passport and your social security card

Debt information including current student loan, car payment and credit card statements

To preapprove you for a mortgage, your bank or lender will pull your credit report. They’ll then calculate your Debt-to-Income ratio, which is your total monthly debt payments divided by your gross monthly income (before taxes). If you’re preapproved for a mortgage, your lender will provide a letter valid for 60 to 90 days that states the maximum amount you could receive in a mortgage loan.

If you’d like to be preapproved for a mortgage, contact your local branch or City Mortgage Loan Specialist.