Now that you’ve decided the time is right to buy a new home, you may be wondering how to take the first step. Before you begin touring open houses and meeting with Realtors®, a good place to begin is to apply for a mortgage pre-approval from your lender.
Why is a mortgage pre-approval from your lender important?
When you find a home you love and are ready to make an offer, a pre-approval letter from your lender can make you an attractive choice to potential sellers. This is because sellers don’t have to worry that you could be turned down for a loan after they accept your offer. The pre-approval letter shows your lender has verified important information, such as:
- Your income
- Credit history
How do you obtain a mortgage pre-approval letter from your lender?
When contacting your lender, it’s important to make sure what you’ll be receiving is an actual pre-approval letter and not a pre-qualification letter. While the two may sound similar, they are very different. A pre-qualification letter is simply an estimate from your lender of how much you may be able to afford. Often, no credit checks or any other verification take place before a pre-qualification letter is issued, so it will not carry the same weight with sellers.
Capitol Federal® makes it easy to apply for a mortgage pre-approval with an online application available at capfed.com/applynow. While filling out the application, you will need to provide information on:
- Employment and income
- Debts currently owed
- Current assets
Once the application is completed, it will be processed and then reviewed by an underwriter. If approved, you’ll receive your pre-approval letter, and you can begin house hunting with confidence.
To learn more about the mortgage pre-approval process from one of Kansas’ leading residential lender teams, contact one of Capitol Federal’s loan professionals.
An important point to remember: if your financial circumstances change after receiving a mortgage pre-approval letter, it may no longer be valid. Make sure you contact your lender, if your financial circumstances change.
Equal Housing Lender