Home Blog About Our Team Contact Careers Resources & Programs Calculate your loan Find your interest rate How and Why to Get Preapproved for a Mortgage November 30, 2013 When you’re in the market for a house, whether you’re a first time buyer or an experienced homeowner, you know that your housing budget makes all the difference. Before you can make an offer on a house, you need to know if you can qualify for a home loan, and if you need to, how much. Often, a prequalification letter is presented at minimum, but this letter is a nonbinding offer by the lender to provide you a loan for a certain amount of money. A prequalification essentially states that if your information can be verified and your credit rating is solid, then you may be provided with the amount requested; however, none of your financial information is verified. A preapproval, on the other hand, involves the lender actually verifying the financial information you provide: income, assets, debts, credit history, etc. After the verification process, a letter is issued that states you are approved for a certain amount of mortgage and is good for a certain period of time. So why ask your lender for a preapproval letter? Your mortgage company has done a thorough review of your financial information and has provided you with a letter stating they will loan you a certain amount of mortgage, thus, it is obligating itself to provide you with this loan. A potential buyer who already has a preapproval letter from a lender stands a much better chance of having their purchase offer accepted than someone who is making their offer contingent upon obtaining financing. The preapproval letter provides you with confirmation of how much you are able to take out to help purchase your new home. To obtain a prequalification letter, preapproval letter, and eventually a mortgage, you will need to gather the following information and documents: EMPLOYMENT AND INCOME: Be prepared to answer questions regarding your current employment, such as who is your current employer and how long have you worked there? Be able to provide recent pay stubs and W-2s. LIABILITIES: Do you have current debts? How much of your income is required monthly to pay these debts? ASSETS: What is your current bank balance? Do you have any other assets or sources of income? CREDIT: Your credit report is likely to be pulled for verification of your credit history. Do you have more questions about preapprovals or the mortgage process? Contact Kama’aina Mortgage Group for all of your mortgage needs – we’re here for you! Blog Categories All First-time Homebuyers Loan Options Office News Testimonials Testimonials "I found them to be knowledgeable and punctual with a strong command of current mortgage rules and financing alternatives." - Carlos D. of Honolulu, HI Read More Testimonials! Join Our Newsletter Our newsletter will supply you with all the updates you need in the search for your new home! Email Address: * Kama'aina Mortgage Group Inc. Company NMLS: 1276471 808-426-7661 7 Waterfront Plaza 500 Ala Moana Blvd., Suite 7400, 427A Honolulu, HI 96813 808-426-7661 Toll free: 833-KMG-HI50 or 833-564-4450 Branch Addresses: 10620 Treena St. Suite 230 San Diego, CA 92131 8000 IH 10 West Suite 600 San Antonio, TX 78230 Licensed in CA, CO, HI, FL, TX, and WA To verify our agent’s license number and status, please click on the link below: Programs 30-Year Financing 15-Year Financing HARP Refinance FHA VA Home Loans for Veterans in Hawaii Adjustable Rate Mortgage (ARM) Reverse Mortgage Purchase a Home Refinancing Calculators Debt Consolidation Calculator Home Affordability Calculator Loan Payment Calculator Mortgage Payment Calculator Refinance Calculator Blog 10 Year Fixed Rate Mortgage A little Known Way to Cut your Mortgage Payments A New Lifeline For Would Be Home Buyers Aloha KMG family Bidding War Buy Now: Hawaii Homes Affordability Window, Closing! Check out our new KMG Commercial Credit Score Killers HARP Loan HARP versus HAMP How and Why to Get Preapproved for a Mortgage How To: Shabby Chic Bedroom Refurbishment Kama’aina Mortgage Group dominates 2013 Lending Games Competition Oahu Condominiums Reach Record Sales Tips For First Time Home Buying Ways To Shave Off Your Mortgage Payment © 2021 Kama'aina Mortgage Group | glossary | privacy policy | legal Kama'aina Mortgage Group Inc. is committed to ensuring that our website is accessible to everyone. We continuously seek to enhance our website, and increase the accessibility of our digital content, for all of our customers. If you have an accessibility-related question or comment, or if you are having difficulty accessing information on this website, please email us at christine@kmghawaii.com so that we can provide you with the information you need through alternative means.