While this focuses on the paperwork that’s typically needed for a mortgage pre-approval process, we need to touch on the other stages of the lending process as well. As a borrower, you might be asked for documents at various points along the way.
Here are some of the stages where you might be asked to provide them:
- Pre-Approval: During this process, the mortgage lender will review your financial situation to determine (A) whether or not you’re qualified for a loan, and (B) how much you are qualified to borrow. This happens before house hunting, hence the “pre” title. There are quite a few documents needed during the mortgage pre-approval process.
- Underwriting: During this process, the lender’s underwriter (or underwriting team) will carefully review the loan application and other supporting documents to ensure that the borrower and the property meet all appropriate guidelines and requirements.
- Conditional Approval: In some lending scenarios, the underwriter might issue what’s known as a conditional approval. This means the borrower is one step closer to closing, but the underwriter still needs some additional documents or information in order to give the final “clear to close” sign-off.
- Closing Day: When all is said and done — and all of the loan documents have been prepared, reviewed and finalized — the borrower can attend closing and finish up the process.