5 Steps to Get Pre-Approved in Today's Market (Houston 2026 Edition)

Thinking about buying a home in Houston this year? If you’ve been watching the headlines, you know the market is shifting. We aren't in the chaotic "bidding war for everything" era of a few years ago, but we also aren't seeing the sky-high rates of late 2023.

Inventory in Houston has ticked up (we're seeing about 4.0–4.5 months of supply now), which means you finally have options. But the best homes—the ones zoned to great schools in Katy, Cypress, or The Woodlands, or the renovated bungalows in the Heights—are still moving fast.

Getting pre-approved is step #1. It’s the golden ticket that tells sellers you’re serious. Here is your 5-step guide to getting it done in 2026.

1. Check Your Credit Score (The "620" Benchmark)

Before you talk to a lender, peek at your own score. Most banking apps now offer this for free.

• The Magic Number: For a conventional loan with the best rates, you generally want to be above 620. If you're aiming for the lowest possible rate, 740+ is the gold standard.

• The "Not-So-Perfect" Options: dipped below 620? Don’t panic. FHA loans are still a fantastic option for Houston buyers with scores as low as 580 (and sometimes lower with a larger down payment).

2. Gather Your Digital Paperwork

Lending in 2026 is faster than ever, but it still runs on documentation. Have these ready in a Google Drive or Dropbox folder to speed up the process:

• Income: Last 30 days of pay stubs.

• Taxes: Last 2 years of W-2s and tax returns.

• Assets: Last 2 months of bank statements (checking, savings, and investment accounts).

• ID: Driver’s license or passport.

3. Calculate Your Budget (The "Real" Monthly Cost)

Ignore the "maximum" amount a lender says you can borrow. Focus on what you should borrow.

• The Rate Reality: As of early 2026, we are seeing rates hover around the ~6% range. While that's higher than 2021, it's significantly more stable than recent years.

• Do the Math: A $350,000 home in Houston with a 6% rate, property taxes (don't forget our MUD taxes!), and insurance will look very different monthly than the raw mortgage calculator shows.

4. Shop Your Lenders (Local Matters!)

This is the step most buyers skip. Rates vary. A difference of just 0.25% can save you thousands over the life of the loan.

• Ask About Grants: 2026 has brought some incredible opportunities for Houston buyers. Ask specifically about:

  • TSAHC (Texas State Affordable Housing Corporation): Grants for teachers, firefighters, and low-to-moderate income buyers.

  • Harris County Down Payment Assistance: Recent updates have increased assistance caps for eligible buyers sometimes up to $40,000+.

  • Harvey Homebuyer Assistance Program 2.0: If you qualify, this city program can offer substantial aid.

• Local vs. Big Box: Local lenders often have better insights into Texas-specific grants and MUD tax nuances than big national call centers.

5. Get The Letter (Pre-Qualification vs. Pre-Approval)

There is a big difference.

• Pre-Qualification: A quick glance at your finances. Good for a chat, bad for an offer.

• Pre-Approval: The lender has verified your docs. This is a "verified" letter.

• Underwritten Approval: The gold standard. An underwriter has already signed off on your file. If you have this, you can close in as little as 14-21 days, which makes your offer look almost as good as cash.

Why 2026 is different

This year, the market is balanced. You aren't just fighting for a house; you're shopping for a home. But when you find "the one," you need to be ready to strike.

Realtors: Tag a client who needs this boost to get off the fence.

First-Timers: This letter unlocks the best deals before the spring rush heats up.

Message me to start your pre-approval journey today. I have a list of trusted local lenders who specialize in first-time buyer grants!

#PreApproval #FirstTimeBuyer #HoustonRealEstate #HoustonHomes #2026HousingMarket