5 Documents to Have Ready When Getting Pre-Approved for a Home Loan in Harford County

Buying a home is one of the most significant investments you will make in your lifetime. It’s a major financial decision that requires careful planning and consideration. One of the first steps in the home-buying process is getting pre-approved for a home loan. This process involves submitting various documents to your lender to verify your income, assets, and credit history. In this blog post, we will discuss some of the most important documents you should have ready when getting pre-approved for a home loan in Harford County.

1. Proof of Your Current Income:

Your lender will need to verify your income to determine how much you can afford to borrow. This means you will need to provide proof of income, such as W-2 forms and recent pay stubs. This will make the lender feel more confident about lending such a large amount of money to potential home buyers. If you are self-employed, you may need to provide additional documentation, such as tax returns and profit and loss statements. Most business owners are able to pull up these reports rather quickly, so don’t hesitate to apply simply because you work for yourself. 

2. Tax Returns From Prior Years:

Your lender will also need to verify your tax returns to ensure that you have a stable income. This means you will need to provide your most recent tax returns for the past two years. If you are self-employed, you may need to provide additional documentation, such as tax returns and financial information for your business. Again, most business owners have these readily available or can reach out to their accountant for assistance. 

3. Bank Statements:

Your lender will also need to verify your assets to ensure that you have enough money to cover the down payment and closing costs. This means you will need to provide your most recent bank statements for all accounts, including checking, savings, and investment accounts. Self-employed individuals may need to provide financial information for their businesses as well. Be sure to keep things in order, specifically leading up to your new home purchase. 

4. Proof of Employment:

Your lender will also need to verify your employment to ensure that you have a stable income. This means you will need to provide proof of employment, such as a letter from your employer or recent pay stubs. Obviously, if you are self-employed, your financial statements should suffice. Just keep in mind that your business should be in good standing, with all requirements up to date. 

5. Credit Report

Your lender will also need to verify your credit history to determine your creditworthiness. This means you will need to provide your most recent credit report. You can obtain a free credit report from each of the three major credit bureaus once a year. You can also use apps such as Credit Karma to check your score without damaging your credit. 
Getting pre-approved for a home loan is an essential step in the home-buying process. Many people won’t even look at your offer without that pre-approval letter attached. By having these essential items ready, you can streamline the process and ensure that you are prepared to move forward with your home loan in Harford County. Remember, it’s always a good idea to work with a reputable lender who can guide you through the pre-approval process and help you find the best loan for your needs. With careful planning and preparation, you can make your dream of homeownership a reality in Harford County. Are you ready to buy a new home? Reach out to Jedd Cheshier and the We Sell Harford Homes Team with Taylor Properties to learn more about some of the local lenders we love in Harford County! 443-616-5486

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