When you get preapproved, your credit is pulled. This gives the lender two things: your credit score and a look at the data on your credit report. You need to have a credit score of 580 to qualify for a loan through the Federal Housing Administration (FHA) and a score of 620 for a conventional loan through Fannie Mae or Freddie Mac. A VA loan backed by the U.S. Department of Veterans Affairs doesn’t require a specific score, but lenders can set guidelines themselves. At Rocket Mortgage®, we look for a credit score of at least 580 for VA loans.
In summary, most lenders require information surrounding your debts and assets, credit history and proof of employment and income. Keep in mind that you won’t need all of this documentation to get your loan preapproved. However, the more information you can give your lender upfront, the stronger your preapproval will be – because both you and the seller can have confidence that your loan is more likely to be approved in the end.
Income and asset documentation can be provided later at the underwriting stage, but submitting it upfront will likely give you a better understanding of how much you can afford to pay.
