To apply for a mortgage loan in Houston, follow these steps: First, obtain a credit report and ensure it meets lender requirements (typically a score of 620+). Second, gather financial documents such as pay stubs, tax returns, and bank statements. Third, secure pre-approval from a mortgage lender to strengthen your offer. Fourth, select a loan type (e.g., conventional, FHA, VA) based on credit score, down payment, and income. Fifth, work with a real estate agent to find a property, submit an offer, and complete an appraisal. Sixth, finalize underwriting, address any conditions, and close the loan at the title company.

The process is structured to ensure compliance with Houston’s housing market regulations and federal lending standards. For example, pre-approval is critical because 68% of Houston homebuyers in 2023 used pre-approval to secure competitive offers, according to the Houston Association of Realtors. Lenders in the area require a minimum down payment of 3% for FHA loans or 5% for conventional loans, which aligns with national trends to make homeownership accessible. Underwriting typically takes 21 days in Houston, slightly longer than the national average of 17 days, due to stricter local property standards. Additionally, closing costs average $7,500 in Houston, or 3% of the loan amount, as reported by ClosingCore. These steps minimize risks like financing delays or rejected offers, ensuring a smoother transaction in a market where inventory is tight and demand remains high.