Getting pre-approved for a mortgage is one of the smartest moves you can make when starting your home-buying journey. But let’s be real—nobody loves paperwork! Knowing what documents you need ahead of time can help you breeze through the process and keep things stress-free.
Whether you’re a traditional W-2 employee, a self-employed business owner, or a 1099 contractor, this guide covers exactly what lenders look for.
đź“‘ Why Do Lenders Need These Documents?
When you apply for a mortgage, lenders are focused on three main things:
✔️ You have reliable, verifiable income.
✔️ You can comfortably afford your monthly payments.
✔️ You have financial stability and a good credit history.
To confirm this, lenders request specific documents based on how you earn your income. Let’s break it down:
đź’Ľ For W-2 Employees
If you work a regular full-time or part-time job and get a W-2 at the end of the year, here’s what you’ll typically need:
• ✅ Most Recent W-2 Forms (covering at least the last year): These show your annual wages and tax withholdings.
• ✅ 30 Days of Pay Stubs: This confirms your current income and that you’re still actively employed.
• ✅ 2 Months of Bank Statements: To verify your available funds for things like the down payment, closing costs, and reserves.
Pro Tip: Be sure your pay stubs and W-2s line up with what’s hitting your bank account—lenders will check for consistency.
đź“ť For 1099 Contractors & Gig Workers
If you’re self-employed through contract work or gig jobs and receive a 1099, lenders want to see a stable income pattern:
• ✅ 12 Months of 1099 Forms: This shows your total income from contract work.
• ✅ Bank Statements: Usually 2–12 months to show that the income from your 1099 forms is consistently deposited.
• ✅ Credit Score of 660+: Most conforming loan programs prefer at least this score.
Pro Tip: If your income fluctuates seasonally, lenders may average your earnings to assess stability.
đź“Š For Self-Employed Borrowers
Running your own business? Lenders will want to see the full financial picture. Be prepared with:
• ✅ 2 Years of Personal and Business Tax Returns: This helps lenders calculate your average income.
• ✅ Profit and Loss Statements (P&L): Some lenders require a year-to-date P&L to assess how your business is doing.
• ✅ Business Bank Statements: This helps verify income and confirm that business funds are separate from personal finances.
Pro Tip: Write-offs and deductions lower your taxable income, which could impact how much you qualify to borrow.
🏦 What Else Might Be Needed?
Depending on your situation, lenders may also request:
• A valid driver’s license or passport (ID verification).
• Social Security number for the credit check.
• Gift letters if someone is helping with your down payment.
• Explanation letters for any large deposits, gaps in employment, or credit inquiries.
🎯 Why Getting Pre-Approved Matters
Pre-approval doesn’t just help you know what you can afford—it also shows sellers you’re serious and qualified. With the right paperwork ready to go, your pre-approval process will be smooth and speedy.
đź‘‹ Ready to get pre-approved or learn more?
🎯 Schedule your FREE consultation with me here:
👉 Book Your Appointment Now
📱 Prefer to text? Reach me directly at 469-336-3027 with any questions.
đź“© Or visit KoryWhiteRealEstateGroup.com to explore more resources.
🏠Let’s make your homeownership dreams happen—starting with a solid pre-approval!
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