Documents to request

• A pre-approval letter, not a pre-qualification, dated within the last 60 days, naming every buyer on the offer, the loan type and an amount that supports the offer price.
• The loan officer’s name, phone, email and NMLS number, so you can confirm the letter directly.
• Proof of funds for the down payment and closing costs: a recent bank or brokerage statement in the buyer’s name.
• Automated underwriting findings (Fannie Mae DU or Freddie Mac LPA), if the lender has run them.
• A gift letter and the donor’s proof of funds, if any of the down payment is a gift.

Red flags

• The pre-approval is more than 60 days old, or it’s a pre-qualification.
• The lender can’t be reached or won’t confirm the letter, even with the buyer’s permission.
• Funds are in accounts that aren’t readily available: retirement accounts, stock options, cryptocurrency, or equity in another property.
• Names on the letter or statement don’t match the buyers on the offer, or the loan type or amount doesn’t match the offer.
• The statement hides the name, date or balance. (Account numbers are often redacted, and that’s fine.)

Questions for the buyer’s agent and lender

• Has the lender reviewed the buyer’s income, assets and credit, or only taken their word for it?
• Has the loan been run through automated underwriting? Are there conditions besides the appraisal and title?
• Is any of the down payment a gift, and are the funds already in the buyer’s account?
• How quickly can the lender close, and does that fit the closing date in the offer?

Lender verification call