A mortgage pre-approval letter from a lender assures you, sellers, and real estate agents that you have the ability to complete the purchase of any home that meets the lender’s guidelines. Mortgage pre-approval shows you what you can afford to spend and what your monthly payment will look like. Mortgage pre-approval is not merely pre-qualification. While a pre-qualification letter is better than nothing (at least you put some thought into your prospective purchase), it can’t compete with an offer from a pre-approved buyer.

To secure a mortgage pre-approval, you must complete a mortgage application and submit all required documents, which typically are

• Pay stubs and W-2s (typically two years) 
• Tax returns (typically two years if self-employed or you earn commissions or bonuses) •
• Bank, retirement and investment account statements (two to 12 months, depending on loan) •
• Financial statements (if self-employed) •
• Letters of explanation for credit blemishes •
• Divorce decrees, if you pay or receive spousal or child support

In some cases, you can get loans with different programs, which, for example, are based on the last 12 or 24 months of bank statements. Other types of loans are available to foreign buyers who do not have a credit or tax history in the United States.

See below a couple different programs and what they require.