How to Get Pre-Approved for a Mortgage — A Step-by-Step Guide

April 9, 2026
Kirk Chivas
First-Time Home Buyer, Mortgage Broker, Real Estate Tips

Getting pre-approved for a mortgage is the single most important step before you start shopping for a home. Here is exactly what you need, how long it takes, and what happens next.

Getting pre-approved for a mortgage is the single most important step you can take before you start shopping for a home. It tells you exactly what you can afford, shows sellers you are a serious buyer, and gives you the ability to move quickly when the right home comes up.

At First Commerce Financial we issue pre-approvals — not pre-qualifications. There is a significant difference, and it matters when you are competing for a home. This guide walks you through exactly what a pre-approval is, what you need, how long it takes, and what happens next.

Same Day

Typical First Commerce Financial pre-approval turnaround

60–90

Days most pre-approval letters remain valid

620+

Minimum credit score for most conventional loans

43%

Maximum debt-to-income ratio for most mortgage programs

Pre-Approval vs. Pre-Qualification — Why It Matters

These two terms get used interchangeably, but they are not the same thing — and the difference matters more than most buyers realize.

❌ Pre-Qualification

✅ Pre-Approval

Based on self-reported information — no verification

Based on verified income, assets, and credit

No credit pull — just an estimate

Actual credit review completed

Sellers and agents do not take it seriously

Sellers know you are ready and qualified

Provides no real competitive advantage

Can be the difference in a multiple-offer situation

May fall apart during underwriting

Backed by real underwriting review

At First Commerce Financial we do not issue pre-qualification letters. We believe they provide no real value to buyers or sellers — they are just a number on paper with nothing behind it. Every letter we issue is a genuine pre-approval backed by actual verification of your income, assets, and creditworthiness.

What You Need to Get Pre-Approved

Gathering your documents before you start the process makes everything faster. Here is exactly what we need:

Income Documents

Last 2 years of W-2s
Last 2 years of federal tax returns
Most recent 30 days of pay stubs
If self-employed: 2 years of business returns plus a current P&L statement
If retired: pension award letters, Social Security statements, or 1099-R forms

Asset Documents

Last 2 months of bank statements (all pages, all accounts)
Last 2 months of investment or retirement account statements
Documentation for any large recent deposits
Gift letter if any portion of your down payment is a gift

Identity & Employment

Government-issued photo ID (driver's license or passport)
Social Security number for credit pull authorization
If you have changed jobs recently: offer letter or verification of employment
If divorced: divorce decree if paying or receiving alimony or child support

Debt Information

Monthly statements for any outstanding loans
Student loan statements showing payment amounts
Any court-ordered payment obligations
Landlord contact info if currently renting (for rental history verification)

About the Credit Pull — It Is a Soft Inquiry First

We start with a soft credit inquiry — which does not affect your credit score — to get an initial picture of your credit profile. Only when you are ready to move forward with a full application do we do a hard pull. This means you can get pre-approved and explore your options without worrying about your credit score taking a hit just for asking.

If you are concerned about your credit score, we will pull it, review it with you, and tell you exactly where you stand — including any quick improvements that could strengthen your qualification before we finalize the pre-approval.

The Pre-Approval Process — Step by Step

Start Your Application

Complete our online application or call us directly at (248) 459-5511. The application covers your employment, income, assets, and the type of home you are looking to purchase. It takes about 15-20 minutes. You can also start by just calling — we will walk you through everything conversationally and collect what we need.

Submit Your Documents

Send us your income, asset, and identity documents. The faster you get us complete documents, the faster we can issue your pre-approval. We will tell you exactly what we need and flag anything missing right away — no waiting days only to find out something was incomplete.

Credit Review

We pull your credit and review your full profile — score, payment history, outstanding balances, and any derogatory items. We will walk you through what we find and explain exactly how it affects your qualification. If there are quick improvements available, we will point them out before we finalize anything.

Review Your Options

Based on your income, assets, credit, and goals, we will show you which loan programs you qualify for and what your payment looks like at different purchase prices. We shop dozens of wholesale lenders to find your best rate — you will see a real number, not an estimate. No surprises later.

Receive Your Pre-Approval Letter

Once everything checks out we issue your pre-approval letter — typically same day or next business day. The letter shows your approved loan amount and can be presented with any offer you make. We can also issue property-specific letters showing the exact purchase price of a home you are making an offer on, which looks cleaner to sellers than a letter with your maximum approval amount.

What Happens After Pre-Approval

A pre-approval letter is typically valid for 60-90 days. Here is what happens next:

Start Shopping With Confidence

With your pre-approval in hand, you know your exact budget and can shop with full confidence. Share your letter with your real estate agent so they know your parameters. When you find the right home, you can submit an offer immediately — no delay waiting for a pre-approval that should have been done weeks earlier.

Keep Your Financial Profile Stable

Once you are pre-approved, do not do anything that changes your financial picture. Do not open new credit accounts, do not make large purchases, do not change jobs if you can avoid it, and do not make any large unexplained deposits. Any significant change to your income, assets, or credit between pre-approval and closing can affect your loan.

From Offer to Full Approval

Once you have an accepted offer, your pre-approval converts to a full loan application. We will order an appraisal on the property, complete underwriting, and work toward your closing date. The typical timeline from accepted offer to closing is 30-45 days. We keep you informed every step of the way — no black hole where you are wondering what is happening with your loan.

Why Use First Commerce Financial for Your Pre-Approval?

We are an independent mortgage broker — which means we are not tied to any one bank's rates or products. When we pre-approve you, we are already shopping dozens of wholesale lenders to identify the best loan program and rate for your situation. Many buyers get pre-approved at their bank and assume that is their best option. It often is not. Our wholesale rates are typically lower than retail bank rates — and you will know the difference before you ever make an offer.

We also do not charge junk fees. No processing fees, no administrative fees, no surprises at closing. What we quote is what you pay.

Free Tools to Use Before You Apply

🏠How Much Home Can I Afford? — Free Purchase Power Calculator 📊Free Housing Market Report by Zip Code 💳Free Debt Reduction Calculator — Improve Your DTI Before Applying 💰What Is the Average Down Payment for a Home?

Frequently Asked Questions

How long does a pre-approval take?

At First Commerce Financial, most pre-approvals are issued same day or next business day — assuming we have all your documents. The process itself is fast. What slows things down is incomplete documentation. If you have your W-2s, tax returns, pay stubs, and bank statements ready when you start, we can move very quickly. Call us at (248) 459-5511 and we can often have a letter in your hands before the end of the day.

Does getting pre-approved hurt my credit score?

We start with a soft credit inquiry which does not affect your score at all. A hard inquiry — which does temporarily affect your score by a few points — only happens when you are ready to move forward with a full application. Even then, multiple mortgage inquiries within a short window (typically 14-45 days) are typically counted as a single inquiry by the credit bureaus because they recognize you are rate shopping. A few points from a mortgage inquiry is not something to worry about.

What credit score do I need to get pre-approved?

Most conventional loan programs require a minimum 620 credit score. FHA loans go down to 580 with 3.5% down. VA loans do not have a hard VA minimum, though most lenders require 580-620. The higher your credit score, the better your rate — improving from 680 to 740 before buying can meaningfully reduce your monthly payment. If your score is below these thresholds, talk to us anyway. We can review your credit profile and tell you specifically what to do to get where you need to be and how long it will take.

How much does a pre-approval cost?

Nothing. Our pre-approval is completely free with no obligation. We do not charge application fees, processing fees, or any other upfront costs. You only pay when you close on a home — and even then, we charge zero junk fees. The pre-approval is simply us doing our job so you can go find the right home.

Can I get pre-approved if I am self-employed?

Yes — self-employed borrowers can absolutely get pre-approved. The documentation requirements are more extensive: we typically need 2 years of personal and business tax returns, a current year-to-date profit and loss statement, and business bank statements. Self-employed income qualification uses your net income after deductions — which is sometimes lower than your actual cash flow. We will explain exactly how your income is calculated and what you qualify for based on your tax returns as filed.

What is the difference between pre-approval and final loan approval?

A pre-approval is based on your personal financial profile — income, assets, and credit — without a specific property attached. Final loan approval happens after you have an accepted offer and adds the property itself to the equation: appraisal, title search, homeowners insurance, and a final review of your financials. Pre-approval tells you what you can buy. Final approval is specific to the home you are buying. The vast majority of pre-approved buyers get final approval without issues — as long as nothing changes in their financial profile between the two steps.

Ready to Get Pre-Approved?

Same-day pre-approvals. Wholesale rates. Zero junk fees. Talk directly with Kirk or Ken — over 60 combined years of mortgage experience and straight answers from day one. No pressure, no obligation.

Start Your Free Pre-Approval Now