Pre-Approval Checklist

Everything a lender needs to issue a real pre-approval, not just a quick estimate.

Scott Gentry

eXp Realty · License# 365010

📞 (910) 477-7615✉️ scott@hamiltonrealtygroupnc.com

📅 Date Completed: ___________________🏠 Property Address: ___________________

🆔 PHASE 1 — PERSONAL IDENTITY AND BASICS
✓	TASK	NOTES / DATE
☐	Government-issued photo ID for every borrower on the loan Driver's license or passport. Must be current and unexpired.
☐	Social Security number for every borrower Used for credit pull and tax-return verification.
☐	Current and prior 2-year address history Every place you've lived, with month-and-year dates. Gaps need explanation.
☐	Marital status documentation if relevant Marriage certificate, divorce decree, or separation agreement as applicable.
☐	Current housing payment history If renting, 12 months of canceled rent checks or landlord-verification letter. If owning, current mortgage statement.

💼 PHASE 2 — INCOME DOCUMENTATION
✓	TASK	NOTES / DATE
☐	Two years of W-2 forms from every employer Verifies reported income and employment continuity.
☐	Two most recent pay stubs covering at least 30 days Confirms current income matches W-2 and shows year-to-date earnings.
☐	Two years of personal federal tax returns, all schedules included Schedules A, B, C, D, E, K-1s — they tell more than the 1040 alone.
☐	For self-employed: two years of business tax returns + year-to-date P&L Self-employment income is calculated on net (after deductions), not gross.
☐	For commission/bonus earners: two-year history of variable income Lenders average over two years. A great current year alone usually won't qualify.
☐	For retirees: Social Security award letters, pension statements, 1099-R forms Documents retirement income used for qualifying.
☐	For rental property owners: Schedule E from prior year's tax return Plus current rent rolls or signed leases for properties acquired since the last filing.

🏦 PHASE 3 — ASSET AND SOURCE DOCUMENTATION
✓	TASK	NOTES / DATE
☐	Two months of statements on every account used for down payment, closing, or reserves Lender reads every page line by line. Any unusual deposit needs sourcing.
☐	Two months of statements on retirement and brokerage accounts Count as reserves; some programs allow them as down payment sources at a discount.
☐	Source any large deposit outside your normal pay pattern in writing ⚠️ Tax refunds, gift funds, sale of asset, anything atypical. Document with a paper trail.
☐	Signed gift letter if any down payment funds are gifted from a relative Must state donor's name, relationship, amount, and that it's a gift (not a loan). Donor's bank statement often required too.
☐	Park down payment funds in a designated account for 60+ days before applying "Seasoned" funds are the cleanest funds. Don't move money unnecessarily in the 60 days before application.
☐	Avoid moving large sums between accounts in the run-up to application ⚠️ Every transfer becomes a sourceable deposit. Each one creates work.

💳 PHASE 4 — CREDIT AND DEBT PICTURE
✓	TASK	NOTES / DATE
☐	Pull all three credit reports from AnnualCreditReport.com Free and official. Read line by line before any lender does.
☐	Confirm credit score meets program minimums Conventional generally 620+, jumbo 700+, FHA can go to 580 with the right down payment. Higher scores price meaningfully better.
☐	Drive revolving credit utilization below 30% (ideally below 10%) on every card Utilization is one of the fastest-moving levers in your score. Pay balances 30+ days before application so the lower number reports.
☐	Dispute any reporting errors before applying Errors take 30 to 90 days through the formal dispute process. Start now.
☐	Avoid new credit applications for 60 days before applying New inquiries and new accounts both can drop your score.
☐	List every current monthly debt obligation on one sheet Cards, car loans, student loans, personal loans, BNPL plans. Add them up — this drives your DTI.
☐	Document co-signed loans separately These usually count against your DTI even though you're not the primary borrower. Provide proof of who actually makes payments if you want exclusion.

🏢 PHASE 5 — EMPLOYMENT VERIFICATION
✓	TASK	NOTES / DATE
☐	Current employer name, address, phone, and HR contact Lender will run a Verification of Employment at application and again days before closing.
☐	Documentation for any job change within the last 2 years Offer letters, separation letters, or written explanations as needed.
☐	For self-employed of less than 2 years: documented prior W-2 history in the same field Often required to bridge the seasoning gap.
☐	Disclose any anticipated income changes between application and closing Bonuses, promotions, leave, switching to part-time — disclose up front, not later.

✍️ PHASE 6 — LETTERS OF EXPLANATION (LOX)
✓	TASK	NOTES / DATE
☐	Letter of explanation for any address gap Brief, dated, signed paragraph explaining the gap.
☐	Letter of explanation for any credit inquiry that didn't result in an account Lenders see all recent inquiries. A short explanation prevents underwriting questions.
☐	Letter of explanation for any unusual deposit Paired with the supporting documentation.
☐	Letter of explanation for any short employment gap Lay-off, illness, parental leave, return to school — be honest and brief.

📋 PHASE 7 — SPECIALTY ITEMS
✓	TASK	NOTES / DATE
☐	Divorce decrees and child support documentation If alimony or child support shows up on your file (paid or received), court-ordered documentation is required.
☐	Bankruptcy discharge papers and seasoning calculation Each loan program has a seasoning requirement (typically 2-7 years depending on type and program).
☐	Foreclosure or short-sale history with dates Triggers the same seasoning requirement framework as bankruptcy.
☐	Student loan documentation including current repayment plan Even on income-driven plans, the lender may calculate qualifying payment differently than your current payment.
☐	Notice of any pending lawsuit or judgment Underwriters will find it on the credit report; better to disclose proactively.

🤝 PHASE 8 — CHOOSE YOUR LENDER AND APPLY
✓	TASK	NOTES / DATE
☐	Interview three loan officers before choosing one National lender, local bank/credit union, and independent broker. Compare how they treat your file, not just rate.
☐	Share the full document set with each interviewed loan officer Lets each one give you informed feedback on issues that might come up.
☐	Ask each lender to identify potential underwriting questions before applying formally Pre-underwriting reveals issues you can solve before they become conditions.
☐	Request a fully underwritten preapproval ("TBD underwriting") In competitive markets, the strongest possible position outside of cash.
☐	Confirm your preapproval letter is dated, signed, and within the validity window of 60-90 days Older letters get rejected. Refresh as needed during the search.
☐	Verify rate-lock terms, float-down options, and lock length in writing Each lender handles these differently. Know the rules before applying.