Mortgage Prequalification vs. Mortgage Pre-Approval

NBKC offers both mortgage prequalification and mortgage pre-approval. It's important to understand the difference between the two.

A mortgage prequalification will let you know what price range of home you can afford. This is helpful, because it allows you to shop only for homes within your budget.

A mortgage pre-approval, on the other hand, is a verified pre-qualification that lets you know exactly how much financing we will provide. To receive a pre-approval, you will have to complete an application and provide several documents (described below). Once you are approved, NBKC will issue a pre-approval letter, which will give you an advantage when making an offer on a home.

The Mortgage Pre-approval Process

To obtain a pre-approval letter from NBKC, we will review your credit score, income-to-mortgage payment ratio, your income-to-debt ratio, and your need for mortgage insurance.

You will need to provide your pay stubs, W-2s, credit reports, bank statements, and other relevant paperwork. While the process may seem overwhelming, our loan professionals are knowledgeable and will help you complete the process efficiently. If you have a co-borrower who is a spouse, they too will need to supply pay stubs. A co-borrower who is not a spouse may be asked to provide all of the previously listed items as well.

Value of a Pre-approval Letter

A pre-approval letter from NBKC, lets the seller know you are a serious bidder. The letter proves that you can afford the offer you made on the house and have a lender supporting you. A pre-approval letter communicates to the agents and sellers that the closing will go smoothly and quickly.

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