What should I organize before mortgage pre-approval?
Start with your lender’s document list, income records, account statements, monthly debt payments, and a realistic housing budget. Estimate your debt-to-income ratio using gross monthly income, then ask the lender which income and obligations count for your loan program. A planning calculator does not issue a pre-approval or guarantee financing.
Before a lender pre-approves you, they'll look closely at two things: your documents and your debt-to-income ratio (DTI). Getting both in order before you apply makes the process faster and gives you a clearer idea of your budget.
How to Calculate Your DTI
Lenders typically look at two ratios, both based on your gross (before-tax) monthly income:
- Front-end DTI = proposed monthly housing payment ÷ gross monthly income × 100
- Back-end DTI = (housing payment + other monthly debt payments) ÷ gross monthly income × 100
Example: $6,000 gross monthly income, a $1,500 proposed housing payment, and $600 in other monthly debts (car loan, student loan, credit card minimums).
- Front-end: $1,500 ÷ $6,000 = 25%
- Back-end: $2,100 ÷ $6,000 = 35%
There is no single DTI cutoff that guarantees approval. Loan products and lenders use different limits and evaluate other information, including credit, income documentation, and assets. See the CFPB explanation of debt-to-income ratio.
Documents to Gather
- Recent pay stubs
- W-2s, and tax returns if you're self-employed or have other income
- Recent bank and investment account statements
- Photo ID
- Explanations for large deposits, and a gift letter if family is helping with the down payment
- Information on any other debts, property, or obligations
Exact requirements vary by lender and loan program, so ask for their checklist early.
Avoid These Mistakes Before and During the Process
- Opening new credit cards or loans
- Making large purchases on credit, like furniture or a car
- Moving large amounts of money between accounts without a paper trail
- Changing jobs without talking to your lender first
Get Ready
The Mortgage Pre-Approval Readiness Checklist calculates both DTI ratios and tracks your documents. Still saving? Try the Down Payment & Savings Planner, and read Closing Costs for Homebuyers.
Written by Marchelle, a Realtor for 26 years and a real estate investor and property manager since 2012. This article is for educational purposes only and is not lending or financial advice. Requirements vary by lender and loan program.
What belongs in the housing-payment estimate?
Ask your lender which costs to include. For planning, account for principal and interest, property taxes, homeowners insurance, applicable mortgage insurance, and association dues. Groceries, utilities, childcare, and maintenance still belong in your household budget even when they are outside a particular DTI calculation.
Questions to ask your lender
- Which documents do you need for my income sources?
- How are student loans, variable income, and other obligations counted?
- How much cash should I document for the down payment, closing costs, and any required reserves?
- How long is the pre-approval valid, and what changes must I report?
Use the CFPB’s mortgage-shopping guide to prepare for conversations with lenders.
Can I use Roof & Ratio to organize this?
The Mortgage Pre-Approval Readiness Checklist combines document tracking with front-end and back-end DTI estimates. Use it to organize your information before discussing your application with a lender. It does not pull credit, submit a loan application, or make an approval decision.