What is a mortgage pre-approval letter?

A mortgage pre-approval letter is one of the first steps in buying a home — and in the Houston market, it’s the one that quietly decides whether your offer gets taken seriously. It’s a written statement from a lender saying they’ve reviewed your finances and are willing to lend you up to a certain amount. Before we tour a single home, I’ll encourage you to get one, because it tells us exactly what you can comfortably buy and shows sellers you’re ready.

In plain terms: a pre-approval letter is a lender’s written commitment to loan you up to a set amount, based on a real review of your income, credit, and debt — not just a quick estimate.

Pre-approval vs. pre-qualification: what’s the difference?

People use these two terms interchangeably, but they aren’t the same thing:

• Pre-qualification is a quick estimate based on numbers you tell the lender. Nothing is verified. It’s a fine starting point, but it carries little weight with sellers.
• Pre-approval is the real thing. The lender pulls your credit and reviews documentation of your income and assets, then issues a letter stating how much they’ll actually lend.

When you make an offer in Houston, it’s the pre-approval letter that matters.

What a lender reviews for your mortgage pre-approval letter

To issue a mortgage pre-approval letter, a lender typically reviews:

• Income: pay stubs, W-2s, and often two years of tax returns — especially if you’re self-employed.
• Credit: a pull of your credit report and scores from one or more bureaus.
• Debt-to-income ratio: how your monthly debt payments compare to your monthly income.
• Assets: bank and retirement statements showing your down payment and reserves.
• Employment: confirmation that your income is stable and likely to continue.

What are the mortgage loan requirements in Houston?

The requirements depend on the loan program, and they’re lower than most renters assume. As general guidelines for the Houston area: an FHA loan asks for a credit score of 580 or higher with 3.5% down; a conventional loan typically wants a 620 score with 3% to 5% down; a VA loan has no down payment and no fixed score minimum from the VA itself, though individual lenders set their own floors — the full picture is in my VA loans guide; and a USDA loan is zero down but limited by household income and eligible-area maps. Across all of them, lenders generally want a two-year employment and income history and a debt-to-income ratio that leaves room for the new payment — commonly capped somewhere between 43% and 50%, depending on the program and your file.

Two things worth stressing. These are guidelines, not walls — compensating strengths like reserves or a larger down payment can offset a thinner spot elsewhere, which is exactly what a lender sorts out during pre-approval. And the 20%-down figure you’ve heard isn’t a requirement at all; I take that myth apart in what down payment you really need in Houston.

Why Houston sellers expect a pre-approval letter with your offer

Most sellers — and their real estate listing agents — won’t seriously consider an offer that doesn’t include a mortgage pre-approval letter or, for cash buyers, proof of funds. When a well-priced home draws several offers, the seller wants confidence the deal will actually close, and a strong pre-approval letter is often what separates your offer from the rest. If you’re buying with cash, a recent bank statement or a proof-of-funds letter does the same job. You can see how I help you put together a competitive offer on the home-buying page.

How long does it take, and how long is it good for?

Many lenders can issue a pre-approval within a day or two once you’ve submitted your documents. The letter is usually good for about 60 to 90 days, because your credit, income, and current rates can all shift. If your search runs longer than that, your lender can refresh it. One word of caution: try not to make big financial moves — financing a car, opening new credit cards, or changing jobs — between your pre-approval and closing, since any of those can change what you qualify for.

Does getting pre-approved hurt your credit?

Only a little, and only briefly. A pre-approval involves a “hard” credit inquiry, which can lower your score by a few points for a short time. If you’re comparing several lenders, do it within a short window — the credit bureaus generally treat multiple mortgage inquiries within about two weeks as a single event, so you can shop offers without stacking up damage. You can read more about how mortgage shopping affects your credit from the Consumer Financial Protection Bureau.

How to get your pre-approval letter

You can get pre-approved through any licensed lender you choose — a bank, a credit union, or a mortgage company. I’m a broker, not a lender, so I don’t issue these myself, but I’m glad to point you toward lenders my clients have had good experiences with. The free Houston Prime Realty app also includes a directory of vetted local lenders, inspectors, and contractors. For a closer look at loan programs and current options, see the mortgage information page, and Freddie Mac’s My Home resource is a solid, unbiased primer. If you’ve served in the military, start with my guide to VA loans in Houston — zero down changes the whole math. And if this is your first purchase, the first-time home buyer roadmap shows where pre-approval fits in the bigger sequence.

Last updated: August 2026 · Reflects current Texas home-buying practices.

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