Your mortgage pre-approval guide.

The path from application to closing

1. Apply: provide complete, accurate employment, income, asset, debt, and property information through a secure application.
2. Pre-approval review: the lender evaluates available documentation, credit, income, and debt-to-income ratio. A pre-approval remains subject to its stated conditions and is not a final loan approval.
3. Underwriting and conditions: provide requested explanations and documentation; the property and transaction also must meet lender requirements.
4. Final approval and clear to close: outstanding conditions are resolved and closing documents are prepared. Reverification or other closing conditions may still apply.
5. Closing: review your final terms, cash to close, and documents. Confirm funding and possession timing with your closing team.

Prepare your credit

Check your credit reports for errors and tell your originator about disputes, late payments, new accounts, or recent inquiries. Make payments on time and discuss large purchases, new credit, account closures, or debt payoffs before making changes during the loan process.

Qualifying score methods, required credit history, and treatment of installment payments vary by program. Do not assume one credit-score rule or a fixed number of tradelines applies to every loan.

Document your income and employment

Be ready to explain your work history and provide recent pay statements, W-2s, and other income records requested by your lender. Overtime, bonus, commission, seasonal, and other variable earnings may require additional history and evidence of continuation.

Self-employed borrowers may need personal and business tax returns, ownership documents, K-1s, and current profit-and-loss statements. Alternative-documentation programs may be available. Commission pay alone does not determine whether a borrower is self-employed; the lender evaluates ownership and program rules.

Understand your funds to close

• Down payment: your contribution toward the purchase price, separate from closing costs.
• Closing costs and prepaid expenses: lender and third-party charges, taxes, insurance, and escrow funding as applicable. Compare estimates and final disclosures.
• Reserves: funds remaining after closing, if required. For example, six months of a $2,500 qualifying housing payment equals $15,000 in reserves; actual requirements and eligible assets vary.
• Earnest money: keep evidence of the deposit and where it came from. It is generally credited toward the transaction.
• Gift funds: discuss donor eligibility, transfer steps, and documentation before moving money. A gift must not be an undisclosed loan.

Your document starting list

• Identification and a complete employment and residence history.
• Recent income documents appropriate to your employment or business.
• Bank and investment account statements for funds being used.
• Information about debts, other real estate, and existing mortgages.
• Supporting records for large deposits, gift funds, and earnest money, if applicable.
• The purchase agreement once you have a property under contract.

Use the secure application or your originator’s approved document channel for sensitive records. Keep Social Security numbers and financial documents out of ordinary website chat, email, and text messages.

Keep your originator informed

Ask before changing jobs, moving large sums, opening credit, or making a major purchase. Promptly explain changes and provide requested records so the lender can reassess your file when necessary.

Adapted from Jindra Faulkner’s mortgage pre-approval guide. Requirements depend on the lender and loan program; examples are illustrative.