What is a mortgage pre-approval?

Mortgage pre-approval is a process that potential home buyers in Kansas go through to determine what size of a loan they can obtain to purchase a home. The lender reviews the buyer’s income, credit score, debts, and assets to confirm that they are creditworthy and can afford to repay the loan. Pre-approval involves the lender looking at income, credit history, and other financial records. When the lender has approved the potential home buyer for a loan, they will provide a pre-approval letter that gives the buyer an estimate of the size of loan they can qualify for. This letter serves as an important tool for the buyer to use when searching for a home that’s within their budget. It shows realtors and sellers that the buyer is a serious buyer who has already been approved for the loan amount they need. When a buyer completes the pre-approval process, they will still have to go through the full mortgage process and even more extensive checks and verifications. This includes a formal application for the mortgage, verifying the buyer’s income, a detailed look at their credit history, and an appraisal of the property. When they pass these steps, the lender will provide the buyer with a loan that they can use to purchase the home.

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What is a mortgage pre-approval?

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