Buying your first home is one of the bigger financial decisions you'll make, and the part most first-time buyers underestimate isn't the loan — it's everything around it. Here's the short version of what I wish every new Texas buyer knew before scheduling that first showing.
1. Your Real Budget Isn't the Maximum You're Approved For
The number on your pre-approval letter is what a lender thinks you can afford. The number you should actually spend is what leaves room for life — savings, repairs, the occasional emergency, vacations. I always recommend running your numbers at three price points: the safe one, the stretch one, and the comfortable one in the middle. Most of my happiest clients buy at the middle number.
Don't forget to budget for property taxes (Texas runs higher than the national average), homeowner's insurance, HOA dues if applicable, and a maintenance reserve of about 1% of the home's value per year.
2. Get Pre-Approved Before You Tour Anything
Pre-approval is not a commitment. It's free. It tells you what you can spend, gives your Realtor real information to work with, and gets the financial reality check out of the way before you fall in love with a house that's out of reach. Start your pre-approval here — I'll need about 20 minutes of your time and a handful of documents.
A solid pre-approval letter also makes your offer more competitive. In neighborhoods where homes get multiple offers, a verified letter from a lender who picks up the phone often beats a higher offer with weaker financing.
3. Don't Make Big Credit Moves While You're Shopping
From the day you apply for pre-approval until the day you close, treat your credit like it's frozen:
- Don't open new credit cards or auto loans.
- Don't co-sign for a family member.
- Don't close an old credit account thinking it'll help.
- Don't make large unexplained deposits — underwriting will ask about them.
Lenders re-pull credit before closing. I've seen deals fall apart over a financed couch.
4. Save More Than Just the Down Payment
Down payment isn't the only money you'll need. Closing costs typically run 2–5% of the loan amount. You'll need earnest money for your offer, an inspection (a few hundred dollars), and ideally some reserves left over for the inevitable first-month-of-homeownership expenses. If down payment assistance is an option for you, I'll let you know.
5. Pick a Lender Who Picks Up the Phone
This sounds obvious until you're trying to reach your loan officer at 7 PM the night before an offer is due. The mortgage process moves fast and includes a handful of stressful moments. Working with a local team you can actually talk to changes the experience.
If you're ready to start, read my 10-step first-time buyer guide or send me a quick message with your situation. I'll walk you through what comes next.
6. Know What Texas Property Taxes Mean for Your Monthly Payment
Texas has no state income tax — but it has some of the highest property tax rates in the country. In DFW suburbs, effective tax rates often run between 2% and 2.8% of the home's assessed value per year. On a $350,000 home, that's $7,000–$9,800 annually — or $583–$817 added to your monthly escrow payment on top of principal and interest. Run your budget against the full payment, not just the loan payment.
7. Always Get a Home Inspection
A home inspection isn't required by most lenders, but skipping it to make your offer look stronger is one of the shortcuts that costs buyers the most. Spend the $350–$500. Know what you're buying. A good inspector will walk the roof, crawl spaces, HVAC, electrical panel, and plumbing. Use the findings to negotiate repairs or a price credit — or to make an informed decision to walk away. Either outcome protects you.
8. Understand Your Contract Contingencies
A standard Texas purchase contract typically includes financing, inspection, and appraisal contingencies. These aren't just formalities — they protect your earnest money if the home doesn't appraise at the purchase price, if your financing falls through, or if the inspection reveals conditions you're not willing to accept. Know what protections are in your contract before you sign, and resist pressure to waive them without understanding the risk you're accepting.
9. The Appraisal and the Inspection Are Two Different Things
They're done by two different people for two different purposes. The appraisal is ordered by the lender to confirm the home's value supports the loan amount — it's about market value, not condition. The home inspection is hired by you to assess the home's physical condition — foundation, systems, structure. You need both. The appraisal doesn't tell you whether the roof leaks; the inspection doesn't set the market value.
10. Don't Try to Time the Market
Buyers who wait for rates to drop, prices to fall, or the "perfect" moment often wait for years — and sometimes miss a home that would have been right for their family. The mortgage market is unpredictable. The best time to buy is when you're financially ready, you've found a home that works for your life, and the monthly payment fits your budget with room to spare. When you get there, I'll help you close with confidence.
Frequently Asked Questions
How much do I need for a down payment as a first-time buyer in Texas?
The minimum down payment depends on the loan program. FHA loans require 3.5% down with a 580+ credit score. Conventional loans can start at 3% for qualified first-time buyers. VA loans (for eligible Veterans) and USDA loans (for eligible rural/suburban areas) require no down payment at all. Many Texas first-time buyers also qualify for down payment assistance programs that can cover part or all of the down payment — and sometimes closing costs. Your actual out-of-pocket cost may be less than you expect.
What credit score do I need to buy my first home in Texas?
For most Texas first-time buyers, a minimum credit score of 580 opens the door to FHA financing with 3.5% down. A score of 620 or above typically qualifies for a broader range of programs. Conventional loans reward scores above 680 with meaningfully better rates. If your score is below 580, there are often focused steps — like paying down revolving balances or disputing errors — that can move your score in 30 to 90 days without a wholesale credit rebuild.
How long does it take to buy a house in Texas from start to finish?
Pre-approval typically takes 1 to 3 business days. The home search varies widely — some buyers find a home in weeks; others take months. Once you have a signed contract, closing typically takes 21 to 45 days depending on the loan program and how quickly underwriting moves. From initial pre-approval to keys in hand, plan for 6 to 12 weeks as a realistic range if you're actively searching with a clear budget and strong pre-approval in hand.
Ready to take the next step?
Talk to me about your specific situation. I'll run real numbers — no estimates, no industry-speak — and tell you straight what fits. Text or call me at 469-545-7180, message me on WhatsApp, or fill out my contact form below.