Lender asked for tax returns in prequal process. Is that normal?

[Amir M.]

Looking to buy a multi-unit property in the DC area. Some properties require a prequal letter just to see the property and my realtor referred me to his lender to provide the letter. The lender asked for tax returns for my partner in order to prequalify. Is that normal? The bigger banks I’ve worked with in the past have never asked for tax returns at this stage but maybe I’m missing something. Thanks for your opinion on this.

[Melvin List]

@Amir M. if you are receiving pre approval letters without verifying income then they are worthless.  If you are qualifying on just the rental income and down payment then the funds to close should be enough.  I real pre approval requires income, credit, and down payment verification.