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Mortgages
Compare common mortgage types and the lender checkpoints around pre-qualification and pre-approval.
Pre-qualification docs
Lenders vary, but buyers are commonly asked for these items when moving from a quick estimate toward a reviewed approval.
- Government ID and contact information
- Recent pay stubs or income statements
- W-2s, 1099s, or tax returns
- Recent bank and investment statements
- Debt and monthly obligation details
- Employment history or business documents for self-employed buyers
- Gift letter documentation if gift funds are used
Terms in this section
Conventional mortgage
A home loan that is not backed by a government program. It is common, but the credit, down payment, and mortgage insurance requirements depend on the lender and loan details.
FHA loan
A government-backed loan that can allow a lower down payment and more flexible credit profile. Borrowers usually pay mortgage insurance.
VA loan
A loan program for eligible servicemembers, veterans, and surviving spouses. It can reduce upfront cash requirements, but eligibility and funding fees matter.
USDA loan
A government-backed program often used for eligible rural or lower-density areas. Property location and borrower income limits are part of eligibility.
Fixed-rate mortgage
The interest rate does not change over the loan term, so principal and interest stay predictable. Taxes, insurance, and other escrowed items can still change.
Adjustable-rate mortgage
The rate is fixed for an initial period, then can adjust on a schedule. It can start lower than a fixed rate, but future payments may rise.
Pre-qualification
Usually an early lender conversation based on information you provide. Useful for planning, but weaker than a reviewed pre-approval.
Pre-approval
Typically involves more lender review and documentation. Sellers and agents often treat it as a stronger signal.
Pre-qualification documents
Documents a lender may request to verify income, assets, debt, employment, identity, and funds available for the purchase.
Lender
The bank, credit union, mortgage company, or broker helping evaluate and provide financing. They review income, assets, credit, appraisal, and loan conditions.
This is a general reference, not mortgage, legal, tax, or insurance advice. Exact requirements vary by lender, loan program, contract, state, and property.