5 Steps to Getting Pre-Approved in Frisco, TX

Getting pre-approved for a mortgage is one of the most important steps in the homebuying process, especially in an active market like Frisco and the greater DFW area. A pre-approval letter shows sellers you're a serious buyer and gives you a clear picture of what you can afford.

Why Pre-Approval Matters in Frisco's Market

Market conditions in Frisco and the DFW area change over time. In busier periods, sellers may expect buyers to show they are financially ready, and a pre-approval letter can help with that. It also gives you a clear view of your budget before you start shopping.

Step 1: Check Your Credit Score

Before applying for pre-approval, review your credit report. You can get free copies from AnnualCreditReport.com. Look for any errors and address them before applying.

Step 2: Gather Your Documents

Having your documents ready helps the pre-approval go smoothly. Here's what you'll typically need:

• Proof of income: Recent pay stubs, W-2s from the past two years
• Tax returns: Often requested, especially if you are self-employed or have other types of income
• Bank statements: Recent statements for your accounts; how many months varies by lender and loan
• ID: Government-issued photo identification
• Employment verification: Contact information for your employer

Step 3: Calculate Your Budget

Before meeting with a lender, get a sense of what you can afford. Consider not just the mortgage payment, but also property taxes (which can be significant in Texas), homeowners insurance, and potential HOA fees—common in Frisco's master-planned communities.

Step 4: Choose the Right Lender

Working with a local lender who understands the Frisco and DFW market can make a significant difference. Local lenders often have relationships with area real estate agents and can provide insights specific to our market.

AXS Mortgage helps buyers across the DFW area with FHA, conventional and home equity financing. Our team can explain your options and what to expect at each step.

Step 5: Submit Your Application

Once you've chosen a lender, submit your application with all required documents. How long it takes depends on your lender and how quickly your documents are verified. If you're pre-approved, you'll receive a letter showing the loan amount your lender has indicated it may be able to offer, which you can share with sellers when making offers. A pre-approval is not a commitment to lend: final approval depends on an appraisal, verification of your information and other conditions.

What to Avoid During Pre-Approval

• ✗Don't open new credit accounts or make large purchases
• ✗Don't change jobs if possible
• ✗Don't move money between accounts without documentation
• ✗Don't co-sign for anyone else's loans