How to Get Pre-Approved for a Mortgage in Texas

Key takeaways

A preapproval is based on a lender’s review of your finances. It’s stronger than a quick prequalification, but it’s not final loan approval.
Lenders mainly look at your income, credit, debts, assets, and down payment.
After you apply, lenders must give you a Loan Estimate within three business days. Use it to compare offers.
The amount you qualify for isn’t always the amount you should spend. Build your budget around a comfortable monthly payment.
Between preapproval and closing, avoid new debt and big financial changes.

Prequalification vs. preapproval

These terms aren’t used consistently from lender to lender, so ask exactly what was reviewed. In general:

Prequalification compared with preapproval
	Prequalification	Preapproval
Based on	Information you share, often unverified	Documents and a credit report reviewed by the lender
Strength with sellers	Limited	Stronger; shows you’ve been vetted
Best for	Early budgeting	Making offers
Final approval?	No	No. Final approval comes after the appraisal and underwriting.

Even a strong preapproval depends on your finances staying the same and on the home itself meeting the lender’s requirements, including the appraisal.

What lenders review

Income and employment: stability and the ability to repay. Self-employed borrowers usually need more documentation.
Credit: your credit history and scores affect whether you qualify and the rate you’re offered. You can check your reports for free at AnnualCreditReport.com before you apply.
Debt-to-income ratio (DTI): your monthly debt payments, including the new mortgage, compared with your gross monthly income.
Assets: money for your down payment, closing costs, and sometimes reserves. Large or unusual deposits may need to be explained.
Down payment: the amount required depends on the loan program and your situation.

Documents to gather

Lenders’ requirements vary, but having these ready speeds things up:

Government-issued photo ID
Recent pay stubs
W-2s or 1099s for the last two years
Tax returns, especially if self-employed
Recent bank and investment statements
Details of current debts and housing payments
Gift letter, if family is helping with funds
Explanations for credit or employment gaps

For your own planning. Checking items doesn’t send anything to Clever Realtors.

Common loan types

The right loan depends on your credit, down payment, property, and plans. Your lender can compare current options for you.

Common mortgage loan types
Loan type	Often a fit for	Good to know
Conventional	Borrowers with established credit	Mortgage insurance is usually required with a smaller down payment
FHA	Buyers who need more flexible credit or down payment guidelines	Includes mortgage insurance premiums; property must meet FHA standards
VA	Eligible veterans, service members, and some surviving spouses	Backed by the Department of Veterans Affairs; may have a funding fee
USDA	Eligible buyers in qualifying rural areas	Income and location limits apply
Jumbo	Loan amounts above conforming limits	Stricter requirements are common

Texas homebuyer assistance programs

Texas has state programs that can help eligible buyers with down payment assistance and mortgage options. Eligibility, income limits, and program terms change, so check each program and ask a participating lender:

Texas Department of Housing and Community Affairs (TDHCA) runs the Texas Homebuyer Program, including options for first-time and repeat buyers.
Texas State Affordable Housing Corporation (TSAHC) offers programs including Homes for Texas Heroes, for eligible professions such as teachers, first responders, and veterans.

Some cities and counties in Dallas–Fort Worth also have local programs. Ask your lender which ones you may qualify for.

How to choose a lender

The lender you choose affects your rate and costs, and it can also affect how smoothly you close. When comparing lenders:

Compare Loan Estimates for the same loan type, on the same day. Lenders must send one within three business days after you apply.
Look beyond the rate. Compare origination charges, points, and lender credits.
Ask about communication and timelines. Responsive lenders help your offer look stronger and keep you on track to close.
Ask about local experience with Texas transactions and the loan programs you’re considering.

Clever Realtors can introduce you to lenders we work with, and you’re always free to choose any lender.

Setting your real budget

Your preapproval amount is a ceiling, not a target. Build your budget around the total monthly cost of owning:

Principal and interest
Property taxes
Homeowners insurance
Mortgage insurance, if required
HOA dues, if any
Maintenance and repairs

Property taxes and insurance can vary widely from one Dallas–Fort Worth community to the next, so look at those numbers for each home you’re considering. Our community guides are a good place to start comparing areas. Also plan for cash due before closing, including earnest money and the option fee, plus inspections and the appraisal.

After you’re preapproved

Keep your finances steady until closing. Don’t open new credit cards, finance a car or furniture, change jobs, or move large sums without talking to your lender first. Lenders often re-check your credit and employment before closing.

Ask for an updated letter for each offer if the lender can tailor it to the price.
Check when your preapproval expires, since documents and credit reports age.
Talk with an agent about your search strategy. See choosing a real estate agent and house hunting in DFW.

Watch: Before you get pre-approved

Frequently asked questions

Does getting pre-approved hurt my credit?

A preapproval usually involves a credit check, which may have a small effect on your score. Credit-scoring models often treat multiple mortgage inquiries within a short window as a single inquiry, so comparing lenders over a few weeks is generally reasonable. Ask your lender how they pull credit.

How long is a preapproval good for?

It varies by lender. Many preapprovals need to be updated after a few months because pay stubs, bank statements, and credit reports age. Ask your lender for the expiration date.

How much do I need for a down payment?

It depends on the loan program and your finances. Some programs allow small down payments, and Texas assistance programs may help eligible buyers. A smaller down payment can mean mortgage insurance and a higher monthly payment, so compare the options with your lender.

Should I talk to a lender or an agent first?

Many buyers talk with both early. A lender helps you understand your budget, and an agent helps you plan your search. In Texas, you’ll sign a written agreement with an agent before they show you homes. See our buyer FAQ.

Can I get pre-approved if I’m self-employed?

Yes. Expect to provide more documentation, such as tax returns and business statements. Starting early gives your lender time to review your income properly.

Do I need a preapproval if I’m paying cash?

No, but sellers will usually want proof of funds with your offer. Even cash buyers should budget for inspections, title, and closing costs.

Sources and further reading

This article is general information, not financial advice or a commitment to lend. Loan programs, eligibility, and terms change and vary by lender. Clever Realtors is a real estate brokerage, not a lender. Talk with a licensed mortgage professional about your situation.