In order to get preapproval for a loan, you will need to submit the required documentation so that the lender can fully assess your finances.
Lenders will want to confirm the following information before granting loan preapproval:
Personal identification, such as a passport or driver’s license A minimum credit score based on the type of loan and lender’s guidelines Financial information that shows your debt-to-income ratio Two years of employment history (not necessarily at the same place of work) Social Security information Pay stubs Bank statements Tax documents Business tax returns (if self-employed) Investment account statements (if applicable) Rental information and landlord references Down payment proof (including gift letters if your down payment was a gift)
Each lender will have slightly different criteria. For example, some may only require a credit score of 580 and above. Certain lenders might be stricter about the debt-to-income ratio and require no more than 43%, others may be willing to accept higher ratios.
That’s why it’s wise to check your lender’s individual loan requirements before applying. However, all lenders will verify basic information such as your ID, credit report, income, down payment, and monthly debts. It's important to gather these documents ahead of time so you can submit them quickly when the time comes.