When applying for a mortgage, you’ll typically need documents that verify your income, assets, credit history, and debt obligations. Common requirements include proof of income (such as pay stubs, W-2s, or tax returns for self-employed individuals), bank statements to show available funds, a credit report, and identification like a driver’s license or Social Security number. Lenders may also request information about your current debts, rental history, and additional financial assets. Providing these documents upfront can help streamline the approval process.

Pre-qualification and pre-approval are both steps in the mortgage process, but they differ in how in-depth they are. Pre-qualification is a quick, initial assessment where a lender estimates how much you might be able to borrow based on basic financial information you provide, such as income, debts, and assets—without a credit check. Pre-approval, on the other hand, is a more detailed process where the lender verifies your financial information, checks your credit, and provides a conditional commitment for a specific loan amount. A pre-approval carries more weight and shows sellers you are a serious buyer.

Your monthly mortgage payment is calculated based on several factors, including the loan amount, interest rate, loan term, property taxes, homeowner’s insurance, and, if applicable, private mortgage insurance (PMI). The core of your payment consists of principal and interest, determined by your loan amount and interest rate. Additionally, most lenders include property taxes and insurance in an escrow account, which spreads these costs over 12 months. If your down payment is less than 20%, PMI may be required, increasing your total payment. A mortgage calculator can help estimate your monthly payment based on these variables.