For many Houston buyers, the mortgage is now the biggest variable in the search. Freddie Mac’s weekly survey averaged 7.18% for a 30-year fixed loan on November 5, down for a third straight week but well above 6.22% a year earlier. A pre-approval is the first step to knowing what you can borrow at today’s rates, and a strong one helps your offer stand out. Here is what lenders typically ask for and how to compare them.
Pre-approval versus prequalification
A prequalification is usually a quick estimate based on what you tell a lender. A pre-approval goes further: the lender reviews your documents and credit before it states what it is willing to lend, which is why agents and sellers tend to give it more weight. Neither is a final loan commitment. That comes after the lender reviews the property, the appraisal and your finances again before closing.
What lenders typically ask for
- Government-issued photo ID and Social Security number for each borrower.
- Recent pay stubs and W-2s, usually covering the last two years, plus tax returns if your income varies.
- Two months of bank and investment statements.
- If you are self-employed, two years of personal and business tax returns and a year-to-date profit and loss statement.
- A list of monthly debts and explanations for large deposits, employment gaps or past credit problems.
Requirements vary by lender and loan type, so ask each lender for its own list. Our free pre-approval checklist puts the list, a lender comparison worksheet and questions to ask on two pages.
Why the rate changes the payment
HAR reported that buyers of a median-priced Houston home ($325,000) with 20% down saw principal and interest rise from $1,622.29 a year earlier to $1,705.41 in September, when Freddie Mac’s average rate was 6.86%. At the 7.18% average from November 5, our own calculation for the same loan comes to about $1,761 a month, roughly $56 more than September’s figure. Taxes, insurance and any MUD or HOA charges come on top, so ask your lender for a full monthly estimate.
How to compare lenders
Ask each lender for a Loan Estimate, the standardized form the Consumer Financial Protection Bureau explains, for the same loan amount, loan type and closing date. Then compare the interest rate, APR, points, lender fees and estimated cash to close side by side, and ask how long the rate lock lasts and what an extension costs. Freddie Mac research cited by national news outlets suggests that borrowers who apply with several lenders in a high-rate market can save roughly $600 to $1,200 a year. Ask each lender how it reports credit inquiries, since scoring models often treat mortgage inquiries made within a short window as one.
Keep the approval on track
Between contract and closing, avoid opening new credit, financing a car or making large purchases, and tell your lender before you change jobs or move money between accounts. Your Texas contract sets a financing approval deadline, so ask your agent which dates apply and how they fit with your option period.
A local agent can introduce you to lenders and walk you through the numbers. Browse our buying roadmap, try the home tools or contact the office to be matched with an agent.
Sources: HAR September 2026 Housing Market Update; Freddie Mac Primary Mortgage Market Survey; Fortune, mortgage rates for November 5, 2026; Consumer Financial Protection Bureau. This article is general information, not financial advice. Photo: Ed Uthman, CC BY 3.0, via Wikimedia Commons.
