Pre-qualified vs. pre-approved — the difference matters in Texas
Pre-qualification is a conversation. Pre-approval is a decision. A true pre-approval means a licensed loan originator has pulled credit, reviewed income and asset documents, and issued a written letter with a specific loan amount, program, and terms. In Texas, where competitive listings often see multiple offers within 48 hours, a written pre-approval letter is what makes your offer credible to sellers and listing agents.
Step 1 — Pull your mortgage credit score
Mortgage lenders don't use the score from Credit Karma or your credit card app. We use a tri-merge mortgage credit report and take your middle score across Equifax, Experian, and TransUnion. If your scores are 702, 718, and 741, we use 718. For couples, we use the lower middle score of the two applicants.
Score tiers that actually change your rate on conventional loans: 620, 640, 660, 680, 700, 720, 740+. If you're within 20 points of the next bracket, a focused 30–60 days of credit work before applying can meaningfully lower your payment.
Step 2 — Gather your documents in one pass
Send everything together. Piecing documents together over three weeks is the single most common reason pre-approvals stall.
- Most recent 30 days of pay stubs (all jobs)
- Last 2 years of W-2s (and tax returns if self-employed or commissioned)
- Last 2 months of every asset statement — checking, savings, retirement, brokerage (all pages, including blank ones)
- Photo ID, front and back
- If self-employed: 2 years of business + personal returns, YTD P&L, and business license
- If VA: DD-214 and Certificate of Eligibility
- If you own other property: mortgage statement, tax bill, insurance declaration, and lease if rented
Step 3 — Apply and authorize a credit pull
An application takes 15–20 minutes online. You'll authorize a credit pull, disclose all debts and real estate, and answer the standard citizenship, bankruptcy, and property questions. In Texas, we also confirm homestead intent, since it drives property tax exemptions on your primary residence.
Step 4 — Receive your written pre-approval letter
A real pre-approval letter names the borrower, the loan program (Conventional, FHA, VA, USDA, Jumbo, Bank Statement, or DSCR), the maximum purchase price, and the down payment structure. It's signed by a licensed loan originator with an NMLS number. In competitive Texas markets, listing agents call the LO to verify — so the letter has to hold up to a phone call.
Step 5 — Shop inside your comfortable range, not your maximum
Your pre-approval sets a ceiling. Your budget sets a target. Texas property taxes (often 2.0–2.8% of home value, higher in some MUD districts) and homeowners insurance (elevated on the coast and in hail-prone regions) can add hundreds of dollars to a monthly payment that a national calculator would miss. Ask for a payment breakdown at the top of your range and at your target — then shop the target.
How long does pre-approval take in Texas?
With complete documents, 24–48 hours is normal. Same-day is possible for W-2 borrowers with clean credit and one job. Self-employed and complex asset structures typically take 3–5 business days because underwriters want a real read on qualifying income.
How long is a pre-approval letter good for?
Most letters are valid 90 days. Credit reports expire at 120 days and income documents at 60–90 days depending on program. Plan on a light refresh if your search extends past three months.
Common reasons Texans get denied — and how to avoid them
- Debt-to-income above program max. Pay down revolving balances 30 days before applying; do not close cards.
- Unsourced large deposits. Every deposit over ~50% of monthly income needs a paper trail.
- Job change mid-process. Don't switch jobs, become 1099, or start a business between application and closing.
- New credit inquiries. No car loans, furniture financing, or new cards until after closing.
- Undisclosed obligations. Alimony, child support, and co-signed loans show on credit. Disclose upfront.