Mortgage Preapproval in Wichita: What It Is and How to Get Ready

The short answer: A mortgage preapproval is a letter from a lender saying it's tentatively willing to lend you up to a certain amount. The lender bases it on your income, assets, debts and credit. It isn't a final approval or a guaranteed loan offer. But sellers often want to see one before they'll accept your offer. To get preapproved, you talk with a lender, share your financial information and documents, and usually allow a credit check. Letters usually have an expiration date. The CFPB says they typically expire in 30 to 60 days. That's why most buyers get preapproved when they're ready to start shopping seriously.

Buying in Wichita, or in a nearby Sedgwick or Harvey County town? Here's how the process works, what to gather, and a few local details that are good to know early.

How mortgage preapproval works

1. Talk through your plans. Your price range, timeline, where you want to buy, and how much you're comfortable paying each month. You don't need to know which loan you want yet.
2. Share your information. Income, employment, assets, debts, and where your down payment is coming from. Lenders ask for different levels of detail. Some base a letter only on what you tell them. Others verify documents up front, which can head off surprises later.
3. Credit check. Lenders typically check your credit before issuing a preapproval letter. It's fair to ask first what kind of credit check will be done.
4. Get your letter, and ask what it's based on. The letter states an amount and the assumptions behind it. Ask: "Is there anything about my situation that could cause problems later, or raise my rate or costs?"
5. Shop with confidence. Your agent can send the letter with your offer. Keep your finances steady until closing (Before You Close).

Please don't send Social Security numbers, bank statements or other sensitive documents by email or through the website contact form. I'll tell you how to share them securely.

Prequalification vs. preapproval

Lenders don't all use these words the same way. The CFPB's advice is not to worry about the label and to ask what the lender actually reviewed.

Documents to gather for preapproval

Having these ready usually makes things move faster. Your lender may ask for different time periods or extra items depending on your situation and loan type.

Checklist:

• Pay stubs covering the last 30 days
• W-2 forms for the last two years
• Signed federal tax returns for the last two years
• Documents for any other income you want counted (for example Social Security, pension, or disability income). You don't have to disclose child support or alimony unless you want it counted. If you do, you'll typically need the court order and proof of payments.
• Your two most recent bank statements, every page
• Statements showing where your down payment and closing money come from, with at least two months of history. If any of it is a gift, a signed letter from the giver saying it's a gift.
• Information on your current debts and housing history (rent or current mortgage)
• Government-issued photo ID and your Social Security number (shared securely only)
• Documents for a recent name change, if any
• Veterans and service members: VA Certificate of Eligibility, if you're considering a VA loan
• Homebuyer education or housing counseling certificate, if you have one (some assistance programs require it)

Self-employed, or paid by commission, tips or another irregular source? You may need extra documentation. Tell me up front and I'll tell you what to expect.

Want a printable version tailored to how you're paid? Mortgage Document Checklist.

Tip: Include every page of multi-page statements, even pages marked "intentionally left blank." Plan to send updated pay stubs and statements at least once before closing.

How long a preapproval lasts

Each lender sets its own expiration date, and it should be printed on your letter. The CFPB says preapproval letters typically expire in 30 to 60 days.

Loan programs also limit how old your documents can be at closing. For example, Fannie Mae's guidelines say credit reports and income, employment and asset documents must be no more than four months old on the note date. Other programs and lenders have their own rules. So if your search runs long, expect to refresh your letter with newer pay stubs, statements and possibly a new credit report. That's normal, and it's usually much easier than starting over.

What affects your preapproval

• Income and job history: how much you earn, how steady it is, and how it's documented
• Debts: car loans, student loans, credit cards and other payments, compared with your income (your debt-to-income ratio)
• Credit: your scores and payment history
• Savings and down payment: how much you have, where it came from, and what's left after closing
• Loan type: programs such as FHA, VA, USDA and conventional loans each have their own requirements. Not every program fits every buyer or every home.
• Estimated housing costs: property taxes, homeowners insurance, mortgage insurance and any HOA dues all count toward your payment
• Changes after you're preapproved: new credit, a job change, or large unexplained deposits can change the result. Check with me before making any of them.

Your preapproval amount isn't your budget

A lender looks at income, assets, debts and credit. You know the rest of your financial life. If you're preapproved for more than you planned to spend, you can stick to your own number. If it's less, ask what limited it.

• Purchasing Power
• Mortgage Payment
• Cash-to-Close Planner

Wichita-area notes worth knowing early

Down payment help depends on exactly where the home is. Find out whether a home is inside Wichita city limits before you count on a particular program. A Wichita mailing address doesn't always mean the home is inside city limits, so check with the city or county.

• Kansas Housing Resources Corporation (KHRC) First Time Homebuyer program. KHRC is the state housing finance agency. Its program offers a 0% interest loan of 15% or 20% of the purchase price to income-eligible first-time buyers (or buyers who haven't owned a home in three years). The loan is forgiven if you stay in the home for 10 years. Household income must be at or below 80% of the area median, and the buyer puts in at least 1% of the price from their own funds. It can't be used inside Wichita city limits (or in Kansas City, Lawrence, Topeka or Johnson County). It can be used for eligible homes elsewhere in Sedgwick County and in Harvey County. KHRC works through participating lenders. Ask me whether I can currently work with the program. If I can't, I'll point you to KHRC's current participating lender list. (Program overview)
• City of Wichita HOMEownership 80. Inside the city, Wichita runs its own down payment and closing cost help for income-eligible first-time buyers, funded by HUD. You apply through one of the city's partner organizations, not through a lender. Right now the city says it's only accepting applications for newly built single-family homes from its partner developers, in designated areas, and a homebuyer education course is required. Current details.
• Programs, funding and rules change. Confirm them before relying on them. Down Payment Assistance Finder.

Talk with Aaron about getting preapproved

Not sure where to start? That's fine. Your price range, where you want to live, your timeline and your biggest question are enough for a first conversation.

• Call or text: (316) 573-3996
• Email: aaronc@theresponsiveway.com
• Request a consultation: Contact Aaron
• Prefer to ask anonymously first?: Ask Without the Pressure
• Ready to start an application?: Start your application

More reading:

• First-Time Buyer Roadmap
• Am I Ready to Buy?
• FHA Loans
• VA Loans
• All Loan Programs
• Mortgage Jargon Translator