Getting Pre Approved

The following documentation is required:
• 2 recent consecutive paystubs for each person qualifying or Tax Returns if self-employed
• Asset Verification for down payment and closing costs
• Social Security numbers for each borrower on the loan

There is a misconception of buyers who say they are Pre-Approved, when in reality you may have only been pre-qualified. When a loan officer has verified through paystubs, W’2′s or tax returns, bank statements, and credit, they will then get a response (Pre-Approval) from an automated underwriting system issued by either Fannie Mae or Freddie Mac.

A pre-qualification on the other hand is only a verbal determination based on what the borrower has told the loan officer what their income and assets are, with maybe the exception of pulling credit, NO verification of your income or assets have been verified.