How to Get a Mortgage Preapproval

Whether you’re buying an existing home or building new construction, it’s important to know how much home you can afford. Getting preapproved for a mortgage loan is one of the first steps to finding out. By getting preapproved, your processing time is reduced significantly—allowing for a smoother, more efficient homebuying experience that will get you into your dream home faster.

Prequalification vs. Preapproval

It’s not unusual for people to think that a mortgage prequalification is the same as a mortgage preapproval. But they are actually two very different things.

A mortgage prequalification is a rough estimate of what a borrower may be able to afford to spend on a home. The estimate is based on basic information supplied to the lender—such as finances, income, and debts. But the lender does not do a hard credit check, so it is not a deep dive into the borrower’s financials and their true ability to purchase a home.

A mortgage preapproval, however, verifies the borrower’s creditworthiness and marks the start of the official mortgage application process. A lender will pull a borrower’s credit score and credit report and take a detailed look at a variety of financial details. This comprehensive review will determine the exact amount of the loan that the borrower qualifies for. An official Preapproval Letter from the lender is the offer to lend the borrower a specific amount, but it’s not a commitment to lend.

Starting the Preapproval Process

Getting preapproved for a mortgage may seem like a daunting task, but Kish can help make the entire experience informative, quick, and convenient. Our free mortgage preapproval program helps homebuyers determine how much they can afford to borrow.

Sitting down with a Kish lending specialist is the best way to get started. We’ll gain an understanding of your homebuying goals and gather all of the documents needed to evaluate your financial condition. Some examples of documentation that you will need to provide include recent pay stubs, W-2s or 1099s, tax returns, bank statements, and other account statements.

After assessing your credit history and reviewing your preapproval application, we can determine the mortgage amount you could potentially qualify for, and then issue a Preapproval Letter.

Schedule an appointment today if you’re ready to meet with a local lending specialist and take the next step in your homebuying journey. Or visit our Knowledge Center for more information about the mortgage process.