When my kids were young and wanted to buy something, I’d often ask, “Do you have enough money for that?” As we grow older, that question becomes second nature—it’s ingrained in us. But financial decisions aren’t always as simple as counting coins in a piggy bank. Bigger purchases, like a car, an apartment, or a house, require a deeper look into our finances.

Since most people can’t buy a home outright, the first step is usually applying for a mortgage to get pre-approved. This helps determine how much house we can actually afford.

To apply for a mortgage, you’ll typically need the following:

1. Proof of Income

• Recent pay stubs (usually last 2-3 months)
• W-2 forms (last 2 years)
• Tax returns (last 2 years, especially if self-employed)
• Additional income documentation (e.g., rental income, alimony, child support, investments)

2. Proof of Assets

• Bank statements (checking & savings accounts, last 2-3 months)
• Investment account statements (stocks, bonds, retirement accounts)
• Gift letters (if receiving financial help for the down payment)

3. Employment Verification

• Recent pay stubs or an employment verification letter from your employer
• If self-employed, profit & loss statements and tax returns

4. Credit History

• Lenders will check your credit score and credit report
• If there are issues, be ready to explain and provide supporting documents

5. Debt & Liabilities

• List of current debts (credit cards, car loans, student loans, etc.)
• Monthly obligations such as rent, alimony, or child support

6. Identification

• Government-issued ID (driver’s license or passport)
• Social Security number

7. Additional Documents (Depending on Mortgage Type)

• FHA, VA, or USDA loans may require additional paperwork (e.g., VA Certificate of Eligibility, proof of rural residency for USDA loans)
• Jumbo loans may require more extensive documentation

Would you like help determining which mortgage type best fits your situation? Contact a mortgage broker. I like recommending Shelly Burkholder. We are not related and I don’t get kickbacks, but it’s nice having someone I can work well with.

Do you want a good loan estimator? I have one on this website, but I also have one on my real estate website.