Home Loans In Rapid City, South Dakota

Welcome to Capital Home Mortgage Rapid City. In addition to being the second-most populous city in South Dakota, Rapid City is best known for its proximity to national parks and, of course, the iconic Mount Rushmore, situated just 40 kilometers away. 

In 2021, Rapid City was listed among the top 20 emerging housing markets in a joint index ranking by the Wall Street Journal and Realtor.com. ‘

If you’ve been considering owning a home in Rapid City, now’s a good time to give it some serious thought and act fast since its real estate market is expected to explode shortly. 

As you may already know, a crucial first step in home hunting is getting pre-approved for a home loan. Home sellers are usually unwilling to entertain offers from buyers without a pre-approval letter. Here’s what you should know.  

What Does It Mean To Be Pre-Approved For A Home Loan?

It means that a lender has looked at your financial information — income, assets statement, credit score, current debts, etc. — and the Underwriter has acknowledged their tentative willingness to loan you a specific amount for a house.  

The details of a pre-approval are usually contained in a letter from the lender. For example, the letter will specify what loans you could be approved for based on your risk profile as a borrower. It will also detail how much you can borrow, how long you can have the loan for, and the interest rates for each loan.

This is important to sellers because it assures them that you can get the funding needed to secure the house, should they choose to sell to you. 

Homebuyers also benefit. For one, they will have a clear idea of the maximum amount they can borrow. In turn, this helps them set a realistic price range when hunting for their dream house. 

Don’t Confuse Pre-Approval With Pre-Qualification

The main difference is that pre-approvals require more in-depth investigation into the borrower’s financial information. 

Pre-qualification is a helpful starting point in the home hunting process. It means that the borrower has met with a lender, and after preliminary checks, the lender gives them an estimated loan amount that they can qualify for.

It doesn’t mean that they qualify for the loan or that they will get that amount upon applying. Pre-qualification only gives them an estimate of how much they can borrow. 

The lender checks basic info like proof of income and debt obligations along with your credit report or history. 

In pre-approval, however, the lender will do the same thing as pre-qualification, plus the borrower’s file goes to the Underwriter for approval, pending an appraisal report of a specific property. 

Rapid City, South Dakota Mortgage Lender 

Are you looking to obtain a home loan in Rapid City, SD? You’ve come to the right place!  Capital Home Mortgage offers a wide range of home loan programs to fit different borrower types. 

As one of the leading direct mortgage lenders in Rapid City, we have streamlined the pre-qualification and pre-approval processes so qualified homebuyers can access the funding they need in the shortest time possible.

Capital Home Mortgage offers a flexible underwriting policy, low fees, and competitive interest rates. 

Apply For A Home Loan In Rapid City Today!

Let us help you realize your dream of becoming a homeowner in Rapid City. Call us now at (605) 349-4377 to connect with our loan officers and get started with a quick, no-obligation quote on your mortgage product options.