How to Get Pre-Approved for a Mortgage in Houston

The short version

• Pre-approval means a lender has reviewed your income, assets, credit, and debts and estimated what you can borrow.
• You'll typically need pay stubs, W-2s or tax returns, bank statements, and consent to a credit check.
• Most buyers get a pre-approval letter within one to three business days once documents are in.
• In Houston, factor property taxes and insurance into your budget, since they push your monthly payment higher than the loan alone.

What pre-approval actually is (and isn't)

Pre-qualification is a quick estimate based on what you tell a lender. Pre-approval is stronger: the lender verifies your documents and credit, so sellers take your offer more seriously. In a competitive Houston market, a pre-approval letter often makes the difference when multiple offers come in. It is not a final loan commitment, though, because underwriting still happens once you're under contract on a specific home.

Documents to gather first

Having these ready speeds everything up:

• Recent pay stubs, usually the last 30 days
• W-2s or 1099s for the past two years
• Federal tax returns, especially if you're self-employed
• Bank and asset statements, typically the last two months
• Photo ID and Social Security number for the credit check

Self-employed buyers should expect a closer look at tax returns and business income, so plan for extra documentation.

The steps

1. Check your credit. Conventional loans often want a score around 620 or higher, while FHA can go lower with a larger down payment. Fix any errors before applying.
2. Know your budget. In Texas there's no state income tax, but property taxes typically run higher than the national average, so escrow can add meaningfully to your monthly payment.
3. Apply with a lender. You'll complete an application and authorize verification.
4. Review your numbers. Look at the loan amount, estimated rate, and full monthly payment including taxes and insurance, not just principal and interest.
5. Get your letter and keep it handy for your agent and offers.

Houston-specific things to plan for

Because Gulf Coast weather drives insurance costs, get a homeowners insurance quote early, and check whether a home sits in a flood zone, since flood coverage is usually separate. A homestead exemption can lower your property taxes once the home is your primary residence, which helps your long-term budget. Ask your lender to run payment scenarios using realistic Houston tax and insurance figures so there are no surprises after you're under contract.