Your mortgage preapproval checklist: What to know before you start house hunting.
Key takeaways:
- A mortgage preapproval helps you understand how much home you may be able to afford before you start your search.
- The mortgage preapproval process is a quick first step that gives you a clearer budget based on the information you provide.
- A mortgage preapproval letter shows sellers you’re a serious buyer and can help strengthen your offer in a competitive market.
Buying a home is a big milestone — and while it’s exciting, it can also feel overwhelming, especially if it’s your first time. Getting a mortgage preapproval before you start house hunting can make the process feel more manageable. It gives you a clearer idea of your budget, helps you narrow your search and allows you to move forward with confidence when you find a home you love.
What is mortgage preapproval?
A mortgage preapproval is an early step in the homebuying journey where a lender reviews your financial information to estimate how much you may be able to borrow for a home loan. This typically includes your income, credit, assets and debts.
At Commerce, the home loan preapproval process helps set the foundation for everything that follows.
“Preapproval is really the first step toward an application,” says Todd Farley, senior manager, mortgage sales & production at Commerce Bank. “Most people are still shopping for a home, so we’re helping them understand what they may qualify for — and what feels comfortable for their monthly budget.”
A mortgage preapproval letter gives you a helpful starting point and shows sellers you’re serious about buying a home.
What to expect during the mortgage preapproval process.
Many buyers expect a long checklist of documents right away, but the mortgage preapproval process often begins with a simple conversation.
“At the preapproval stage, we’re using information the customer provides — like income, assets and debts — and pulling credit,” Farley explains. Because this step is based on the details you share, the Commerce loan preapproval process can move fairly quickly. More detailed verification typically happens later, once you’re under contract on a home.
Steps to get preapproved for a mortgage.
If you’re wondering how to get preapproved for a mortgage, the process usually includes a few simple steps:
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Connect with a Commerce Bank Mortgage Lender.
Talk through your financial situation, homebuying goals and timeline.
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Share your financial details.
Provide information about your income, assets, debts and employment. Your credit will also be reviewed as part of the mortgage preapproval process.
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Review your preapproval amount.
Your lender will estimate how much you may qualify for and issue your mortgage preapproval letter.
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Start house hunting.
Use your preapproval as a guide to focus your home search and move forward with confidence.
Understanding your mortgage preapproval amount.
Your mortgage preapproval amount is based on your overall financial profile — but it’s important to remember that it’s simply a starting point.
“In some cases, customers qualify for more than what they’re comfortable with,” says Farley. “We want to make sure we’re aligned with what their monthly payment should look like — not just their maximum.”
Think of your preapproval amount as a guide, not a goal. It should support your budget and your life — not stretch it too far.
What many homebuyers misunderstand about mortgage preapproval.
One common misconception is that a mortgage preapproval guarantees your loan.
“A preapproval is not a final approval,” Farley explains. “There are still steps like underwriting, where we verify income, assets and the property itself.”
That means your loan details can still change as you move through the homebuying process.
Tips for first-time homebuyers.
Buying a home is about more than just getting preapproved — it’s also about planning ahead.
- Plan for more than the down payment: There are often additional costs after closing, like furnishings, repairs or everyday home essentials.
- Leave room in your budget: You’ll need a down payment, and it’s important not to use all your savings upfront, so you have flexibility later.
- Stay open to loan options: There are many types of home loans, and each is designed for different situations.
- Ask questions early: Understanding the mortgage preapproval process can help avoid surprises later.
“We want customers to feel comfortable asking about anything,” Farley adds.
Get started with mortgage preapproval.
To learn more about how to get preapproved for a mortgage, explore Commerce’s mortgage process or call 844-340-2574 to connect with a mortgage officer when you’re ready to take the next step.
