 TITLE: How to Get Preapproved for a Mortgage CONTENT: What Do You Need for a Mortgage Preapproval?\n--------------------------------------------\nBecause mortgage preapproval requires submitting a mortgage application, it's a detailed process. Items you should be prepared to submit with your application include the following:\n*   **Personal details**: The lender will require proof of identity, such as a copy of a passport or a driver's license, and your Social Security number.\n*   **Permission for a credit check**: You'll also be asked to authorize access to your credit reports and your credit score. It's wise to check your credit report and credit scores yourself at least six months before starting the preapproval process to avoid surprises and to give you time to clear up any credit report inaccuracies that might be lowering your credit score.\n*   **Income information**: To document your income, you'll need to provide pay stubs, bank statements and tax returns for the past two years. If you are self-employed, the lender will average the annual incomes you reported on your tax returns for the previous two years.\n*   **Assets and debts**: Mortgage lenders typically like to see indications that you have resources available to cover your loan down payment and to help make your loan payments in case your employment status or income changes. Assets can include savings, investments and property you own. Outstanding loans and credit card balances will appear on your credit reports, but you'll also be asked if you have any other debts as well.\nNote that requirements for down payments and other assets may vary by loan type:\n*   Qualifying loans that meet the requirements for purchase by Fannie Mae and Freddie Mac, the federal government-sponsored enterprises that acquire most of the nation's single-family mortgages, require 20% of the purchase price as a down payment.\n*   Conventional mortgages obtained through banks, credit unions and mortgage brokers typically require a minimum down payment of 5% (but require purchase of private mortgage insurance if the down payment is less than 20%).\n*   FHA loans for first-time home buyers are backed by the Federal Housing Administration (FHA) and are available with down payments as low as 3.5%.\n*   VA loans issued to veterans, service members and their qualifying surviving spouses through the Department of Veterans Affairs (VA) are available with no down payment.\n*   USDA loans, available to low-income borrowers buying homes in rural areas of the U.S., are also available with no down payment.\nFinally, you may be asked to pay an application fee of up to several hundred dollars.\nLenders typically generate preapproval letters within a day of submitting your application. However, if you are self-employed, or if the lender requires additional verification of any part of the application, preapproval could take up to two weeks. END