Getting pre-approved for a mortgage before you go home shopping isn’t required, but it is a good idea, especially in a seller’s market, where competition among buyers is intense. Unlike a pre-qualification, a pre-approval letter lends weight to your bid on a home, proving to sellers that you have the financial clout to stand behind your offer. A pre-approval also helps you understand the home price you can afford, allowing you to budget for your home purchase and focus your home search.
To get pre-approved, you’ll need to have some documentation to verify your income, tax returns, resident status, employment, etc. Gathering all required documentation can be a daunting task, particularly for first-time home buyers. However, paperwork is the lifeblood of the mortgage industry. While the industry is gradually adopting paperless procedures, there are still plenty of documents required in a typical mortgage pre-approval process. Here are some of the most commonly requested items:
1: Proof of Income
If you are an employed worker(full-time, part-time, contract) with more than 1-year work history in your current workplace, you’ll need
The most recent annual payslip(Gensen-choshu-hyo): You can obtain your most recent annual payslip at your workplace.
If you are an employed worker(full-time, part-time, contract) with less than 1-year work history in your current workplace, you’ll need
The all monthly payslips ever given(Kyuyo-meisai-sho): You can obtain your monthly payslips at your workplace.
If you are a self-employed borrower(Kojin-jigyonushi), you’ll need
3 years of annual profit and loss statement(Kakutei-shinkoku-sho): You can obtain your profit and loss statements at the tax office.
2: Tax Returns
3 years of proof of income(Shotoku-shomei-sho): You can obtain your proof of income at the city office.
1 year of proof of tax return(Nozei-shomei-sho): You can obtain your proof of tax return at the city office.
3: Borrower Identification
A copy of your driver’s license or My Number Card.
A copy of your social insurance card(Shakai-hoken-sho) or national health insurance card(Kokumin-kenko-hoken-sho)
If you are not a Japanese citizen, you’ll also need
A copy of your residence card(Zairyu card)
4: Employment Verification
If you’re an employed worker(full-time, part-time, contract), you’ll need
Employment certificate(Zaishoku-shomeisho): You can obtain your employment certificate at your workplace.
5: Other Documentation
Seal registration certificate(Inkan-toroku-shomei-sho): You can obtain your seal registration certificate at the city office.
Residence certificate(Jumin-hyo): You can obtain your residence certificate at the city office.
Summary: Documents needed for a mortgage pre-approval letter
Income and employment documents, such as annual payslips, monthly payslips and annual profit and loss statements.
A copy of residence cards, insurance cards and other identification cards.
We are a real estate agency working hard to assist you in the mortgage application and real estate purchase processes. We provide services in English for those who are looking to buy properties in Japan but struggle with Japanese communication.