If you’re thinking about buying a home in Texas, getting pre-approved for a mortgage is one of the smartest first moves you can make. It tells you exactly what you can afford, shows sellers you’re serious, and gives you a real edge in a competitive market.
Here’s what the process looks like — step by step — so you know exactly what to expect.
What Is Mortgage Pre-Approval?
Pre-approval is when a lender reviews your finances and tells you, in writing, how much they’re willing to lend you and at what rate. It’s different from pre-qualification, which is just a rough estimate based on what you tell the lender — no documents, no verification.
Pre-approval carries real weight. Sellers in Texas take pre-approved buyers more seriously. And in fast-moving markets like Austin, a pre-approval letter can be the difference between getting an offer accepted and losing the home to someone else.
Step 1: Know Your Numbers Before You Apply
Before you reach out to a lender, it helps to have a general idea of where you stand. Here’s what matters most:
Credit score. Most conventional loans require a 620 minimum. FHA loans go as low as 580. The higher your score, the better the rate you’ll qualify for.
Debt-to-income ratio (DTI). Lenders look at how much of your monthly income goes toward debt payments. Most loan programs want your total DTI — including the new mortgage — to stay under 45–50%.
Down payment. You don’t need 20% down. Conventional loans can go as low as 3–5%. FHA loans require 3.5%. What you put down affects your rate and whether you’ll pay mortgage insurance.
If you’re not sure where you stand, a quick conversation with a mortgage broker can tell you exactly where you are and what your options look like — before you ever pull a credit report.
Step 2: Gather Your Documents
Pre-approval requires real documentation. Have these ready to go:
- Two years of W-2s (or 1099s/tax returns if self-employed)
- Two years of federal tax returns
- Two most recent pay stubs
- Two months of bank statements (all pages)
- Photo ID
- Landlord contact or 12 months of rental history (if renting)
If you’re self-employed, you’ll also need a year-to-date profit and loss statement. Self-employed borrowers can absolutely get pre-approved — it just takes a few more documents.
Step 3: Choose the Right Lender
Not all lenders are the same. A bank can only offer you their own loan products. A mortgage broker — like Texas Mortgage Consultants — shops your file across 40+ wholesale lenders to find the best rate and terms for your situation.
Working with a broker also means you typically pay less in fees. Banks charge $2,000–$5,000 in lender fees. At Texas Mortgage Consultants, you pay $0 in lender fees. That’s real money you keep at closing.
You can start your pre-approval here or call Russell directly at 512-423-4663.
Step 4: Submit Your Application
Once you’ve chosen a lender, you’ll complete a loan application — called a 1003 — and authorize a credit pull. This is a hard inquiry, but one credit pull for a mortgage has minimal impact on your score, especially if you limit your rate shopping to a short window.
Your lender will review your documents, run your credit, and verify your income and assets. At Texas Mortgage Consultants, most borrowers receive a pre-approval decision within 24–48 hours.
Step 5: Receive Your Pre-Approval Letter
If approved, you’ll get a pre-approval letter stating the loan amount, loan type, and basic terms. This letter is what you present with your offer when you find a home.
A few things to know:
- Pre-approval letters are typically valid for 60–90 days.
- Your final approval still depends on the home appraising and your financial situation not changing before closing.
- Don’t open new credit accounts, change jobs, or make large purchases after pre-approval — it can affect your final loan.
How Long Does Pre-Approval Take in Texas?
With the right lender and your documents ready, pre-approval can happen in as little as 24–48 hours. Some lenders take a week or more. If you’re in a time-sensitive situation — or just want to know where you stand — it pays to work with someone who moves fast.
Ready to Get Pre-Approved?
Texas Mortgage Consultants is an independent mortgage broker based in Austin, TX. Russell Stout has been closing Texas home loans since 2002 — with $0 lender fees and access to 40+ wholesale lenders. Whether you’re buying your first home or your fifth, we’ll find the right loan for your situation and get you to closing on time.
Start your pre-approval today or call 512-423-4663.
Frequently Asked Questions
Does getting pre-approved hurt my credit score? A mortgage pre-approval requires a hard credit inquiry, which may lower your score by a few points temporarily. If you apply with multiple lenders within a short window (typically 14–45 days), the credit bureaus count it as a single inquiry for rate-shopping purposes.
How long is a pre-approval letter valid in Texas? Most pre-approval letters are valid for 60–90 days. If yours expires before you find a home, your lender can refresh it by verifying your documents are still current.
What’s the difference between pre-qualification and pre-approval? Pre-qualification is an estimate based on self-reported information — no documents, no credit pull. Pre-approval involves verified documentation and a credit check, and carries real weight with sellers.
Can I get pre-approved if I’m self-employed? Yes. Self-employed borrowers can absolutely qualify for a mortgage in Texas. You’ll need two years of tax returns, a year-to-date profit and loss statement, and bank statements. The process takes a bit more documentation but is very doable.
How much do I need to put down to get pre-approved? It depends on the loan type. Conventional loans start as low as 3–5% down. FHA loans require 3.5%. Your down payment affects your rate and whether you’ll pay mortgage insurance, but you do not need 20% to buy a home in Texas.
Russell Stout | NMLS# 220896 | Texas Mortgage Consultants, PLLC | Company NMLS# 1843758 | Licensed by the Texas Department of Savings and Mortgage Lending | Equal Housing Lender | 8805 Lemens Spice Trail, Austin, TX 78750
Leave a Reply