A lender asks for paper to prove four things: who you are, what you earn, what you've saved and what you owe. Your credit report covers most of the debts by itself, so the stack you gather is mostly about income and money in the bank. Having it ready before you apply is the fastest way to a pre-approval letter you can put with an offer.
The core list for every buyer
- Photo ID and Social Security number. A driver's license or passport, plus your Social Security number so the lender can pull your credit from all three bureaus.
- Pay stubs covering the most recent 30 days. They should show year-to-date earnings, which lets the underwriter check that your pay has been steady all year.
- W-2s for the last two years. These show two years of earnings and employers.
- Bank statements for the last two months. Every page, for every checking, savings or investment account you'll use for the down payment, closing costs or reserves.
- Your employer's contact details. The lender confirms your job directly before closing, a step called the verification of employment.
- The signed purchase contract, once you're under contract on a home.
Extra documents for your situation
| Situation | What to add |
|---|---|
| Self-employed or paid on a 1099 | Two years of personal tax returns with all schedules, plus business returns if you file them, and a year-to-date profit and loss statement when your last return is several months old |
| Overtime, bonus or commission pay | Two years of W-2s and an employer verification that breaks out base pay from the extras |
| Social Security, SSI, disability or a pension | The current award or benefit letter and a bank statement showing the deposit |
| Child support or alimony you receive | The court order or divorce decree and proof the payments are arriving |
| A gift from family | A signed gift letter and proof of the transfer from the giver's account |
| A VA loan | Your Certificate of Eligibility, which the lender can usually request online, and a DD-214 if you've left the service |
| A past bankruptcy or foreclosure | Discharge or completion papers and a short letter of explanation |
| Divorced or separated | The final decree or separation agreement, which shows support you pay or receive and who keeps which debts |
A worked example: how the paper turns into numbers
Maria is paid $22.50 an hour for 40 hours a week. The underwriter reads that rate off her pay stub and converts it to monthly income: $22.50 × 40 × 52 ÷ 12 = $3,900.00 a month. That figure drives her debt-to-income ratio and her price.
She's buying a $285,000 home with FHA, so her down payment is 3.5%, or $9,975. Her bank statements show a $2,400 deposit from selling an old car. Whether that deposit needs paperwork depends on the program:
| Check | FHA | Conventional (Fannie Mae) |
|---|---|---|
| Large deposit rule | Deposits over 1% of the price or appraised value, whichever is lower | Deposits over 50% of monthly qualifying income |
| Maria's line | 1% × $285,000 = $2,850 | 50% × $3,900 = $1,950 |
| The $2,400 car sale | Under the line | Over the line, so she adds the bill of sale and the title transfer |
Either way, Maria keeps the bill of sale handy. An underwriter can ask about any deposit that isn't a paycheck, and a two-minute answer with a receipt beats a week of back and forth.
How fresh the documents need to be
Documents age. On a Conventional loan, Fannie Mae wants credit, income and asset documents no more than four months old on the day you sign. USDA allows 120 days at closing, and FHA and VA work on a similar window of about four months. If your home search runs a few months, expect to send a newer pay stub and the latest bank statement before closing. The page on how long a pre-approval lasts shows how that timing plays out.
If something on the list is missing
Most gaps have a quick fix. A missing W-2 can be replaced with an IRS wage and income transcript. Statements you threw away can usually be downloaded from your bank's website for the past year or more. A job gap gets a one-paragraph letter saying what happened and when you went back to work. Cash you kept at home can be used once it's deposited and documented, which this page on cash saved at home explains. A divorce decree you can't find is on file with the clerk of court in the county where the divorce was granted.
Put your income into the affordability calculator to see the price it supports before you start gathering. Once the stack is together, call AAA Capital Funding at 888-601-8344, and we'll tell you whether anything else is needed before we issue your pre-approval.