When preparing to purchase a home, it's important to first determine how much you can afford based on your financial situation. Completing a prequalification is an excellent way to gain a general understanding of your homebuying power. This process provides a preliminary assessment of your finances using the information you share with a lender. Keep in mind that the more detailed information you provide, the more accurate your prequalification results will be. To help you get started, we've compiled a list of essential documents you'll want to have on hand when completing your prequalification.

Personal Identification:

We will need to verify your identity, so be sure to have your government-issued ID close by.

• Driver's license

• Passport

Income Verification:

Verifying income can look different depending on your employement status and other factors. To make things easier, we've compiled a list of the most common documents used for income verification.

• Paystubs from the past 30 days

• W2 forms of the past 2 years

Self-employed? Here's what you might need: 

• Tax returns of the past 2 years

• Profit and loss statement for the current year

• W2 forms of the past 2 years (if applicable)

• Paystubs from the past 30 days (if applicable)

• Personal or Business returns (if applicable) 

Proof of Assets:

Depending on the assets you own, you might have to prepare the following documentation.

• Bank statements of the past two months

• Investment account statements of the past two months

• 401K statements of the past two months

Additional Information (if applicable):

Specific circumstances may require the need for additional documents.

• Divorce decree

• 1099s for disability or retirement income

• Child support/Alimony

• Explanation of credit inquiries and/or credit discrepancies

• Lease agreement for any rented property

• Proof of ownership of other properties 

- Mortgage Statements 

- HOA statement

- Most recent property tax bill 

- Homeowners insurance policy 

*Please note, your Loan Officer may request additional documentation throughout your loan journey. 

Submitting a thorough and accurate prequalification application can provide a clear estimate of how much you may be eligible to borrow. By gathering some of the documents mentioned above, you'll set yourself up for success right from the start. Remember to keep these documents secure and up to date—you may need them again as you move forward in your loan journey!

If you're ready to take the next step, we invite you to prequalify with Inspire Home Loans. Our knowledgeable Loan Officers are here to guide you through the process and ensure a smooth, stress-free home financing experience. If you have any questions about getting started, don't hesitate to Contact Us today!