You have made the decision to purchase a house in Michigan and you have heard that getting financing pre-approval is the best thing for you to do before you even start house hunting. It is actually great advice for two key reasons.
First, you will know the exact price range within your reach thereby saving you a lot of frustration and time. And second, if you get pre-approved, sellers are more likely to take you seriously and thus be more willing to enter into genuine negotiations.
What documents do you need to get a mortgage preapproval in Georgia?
Before you head off to the bank, you will need to have certain documents for a mortgage pre-approval in Michigan.
1. Proof of Income and Employment
You will obviously need to show lenders that you are not only employed but also that your income is sufficient enough for you to keep up with the mortgage payments each month.
The kind of documents needed for mortgage pre-approval in Michigan depend on your employment situation as well as how you are paid. Still, in every case, you will probably be required to provide copies of the previous 2 years’ income tax returns, both state and federal.
You will also need the following:
- Wage Earners and the Salaried: Copies of the past few pay stubs and most recent 2 years’ W-2 forms along with records of bonuses and overtime.
- Self-Employed Persons (Freelancers and Independent Contractors): Profit-and-loss statements and the last few years’ Form 1099. This also includes S-corporations, partnerships, and sole proprietorships.
If you have any, you will also be required to provide proof of real estate income. If it is a rental property, you will be required to provide the property’s market value along with proof of rental income.
2. Records of Assets
A listing of assets is another of the documents you will be required to provide for mortgage pre-approval in Michigan. For each bank account (savings, checking, money market, etc.) you will require copies of at least 60 days’ worth of statements.
Furthermore, you will need the statements for the past 2 months for all your investment accounts such as CDs, stocks and bonds. You should also be prepared to provide the most current quarterly statement showing the vested balance for any 401(k)s.
3. List of Monthly Debt Payments
Lenders will obviously want to know how much you pay out every month to cover your debts. So, you will be required to provide official records of monthly debt-payment obligations such as student loans, other mortgages, car loans, and credit cards. Lenders will require you to provide each creditor’s name and address, along with the account balance, minimum payment, and loan balance.
If you are currently renting, you will likely be required to provide rent-payment receipts for the past 12 months. You also need to be ready to provide landlord contact details for probably the past 2 years.
4. Records of Other Expenditures and Financial Events
Other records that are part of the documents needed for mortgage pre-approval in Michigan are those used for documenting certain life-event expenditures. For instance, if you are divorced, you should be prepared to provide court orders for child support and alimony payments. If you have declared bankruptcy or been through foreclosure, you will be required to provide relevant documents.
Here is one final thought. Lenders will often question you about how you plan to fund the down payment on the property. So, remember that you may be required to show proof of the sources of money for that purpose.
Being pre-approved for financing depends mostly on the documents that you provide and once you have done that, you can embark on your house-hunting journey.
If you wish to learn more about the best ways to get pre-approved along with other financing options, contact by phone at or by filling out your quick quote!