First-Time Homebuyer Guide for Texas: Everything You Need to Know in 2026
Buying your first home in Texas is one of the biggest financial decisions you'll ever make. With property values shifting, mortgage rates moving with the market, and a wide range of loan programs available, it can feel overwhelming to know where to start. This guide breaks down everything a first-time homebuyer in Texas needs to know, from credit prep to closing day.
Step 1: Check Your Credit Score Early
Your credit score is one of the biggest factors in determining your mortgage rate and what loan programs you qualify for. Most conventional loans look for a score of 620 or higher, while FHA loans can sometimes accept scores as low as 580.
Pull your credit report from all three bureaus (Equifax, Experian, and TransUnion) at annualcreditreport.com. Look for errors, old collections, or accounts that shouldn't be there. Disputing inaccuracies can boost your score before you apply.
If your score needs work, focus on paying down credit card balances below 30 percent of your limit and avoid opening new credit accounts in the months leading up to your mortgage application.
Step 2: Figure Out What You Can Actually Afford
A common mistake first-time buyers make is shopping based on what a lender pre-approves them for instead of what fits their lifestyle. Just because you qualify for a $400,000 loan doesn't mean you should max it out.
A good rule of thumb is keeping your total housing payment (principal, interest, taxes, insurance, and HOA if applicable) at or below 28 percent of your gross monthly income. In Texas, property taxes are higher than the national average, so always factor that in. A $350,000 home in Frisco can carry property taxes of $7,000 to $10,000 per year, which significantly impacts your monthly payment.
Step 3: Save for the Down Payment and Closing Costs
Down payment requirements vary by loan type:
Conventional loans typically require 3 to 5 percent down for first-time buyers. FHA loans require 3.5 percent down with qualifying credit. VA loans (for eligible veterans) and USDA loans (for eligible rural areas) can offer zero down payment options.
On top of the down payment, plan for closing costs, which usually run 2 to 5 percent of the loan amount in Texas. These cover lender fees, title insurance, appraisal, and prepaid items like property taxes and homeowners insurance.
Step 4: Get Pre-Approved Before You Shop
A pre-approval letter shows sellers you're a serious buyer and gives you a clear budget. To get pre-approved, your mortgage broker will need:
Recent pay stubs (last 30 days)
W-2s and tax returns (last 2 years)
Bank statements (last 2-3 months)
Photo ID
Information about any other assets or debts
The stronger your documentation, the faster and smoother your pre-approval will go.
Step 5: Explore First-Time Buyer Programs in Texas
Texas offers several programs designed to help first-time buyers:
The TSAHC (Texas State Affordable Housing Corporation) offers down payment assistance and mortgage credit certificates for eligible buyers. The TDHCA (Texas Department of Housing and Community Affairs) also offers first-time buyer programs with down payment grants.
Many cities, including Dallas, Fort Worth, and Houston, offer local down payment assistance programs as well. A mortgage broker familiar with Texas programs can help you identify which ones fit your situation.
Step 6: Find the Right Real Estate Agent
Look for an agent who knows the area where you want to buy and has experience working with first-time buyers. They should be willing to explain everything clearly, show you homes in your actual budget, and advocate for you during negotiations.
Step 7: Make an Offer and Go Under Contract
Once you find the right home, your agent will help you make an offer. In a competitive Texas market, you may need to offer at or above asking price, depending on the area. Earnest money (usually 1 percent of the purchase price) shows the seller you're serious.
Step 8: The Home Inspection and Appraisal
After your offer is accepted, you'll have a short window (usually 7-10 days) to complete a home inspection. This is your chance to find any major issues before closing. The lender will also order an appraisal to confirm the home's value supports the loan amount.
Step 9: Final Underwriting and Closing
Your loan goes through final underwriting, where the lender reviews everything one more time. During this stage, don't make any major financial moves like buying a car, opening new credit cards, or changing jobs. These can derail your loan.
At closing, you'll sign the paperwork, pay your down payment and closing costs, and get the keys to your new home.
Common First-Time Buyer Mistakes to Avoid
A few things to watch out for:
Don't shop for homes before getting pre-approved. You'll waste time looking at homes outside your budget.
Don't drain your savings for the down payment. Keep an emergency fund for repairs and unexpected expenses.
Don't skip the home inspection to win a bidding war. Saving a few hundred dollars now can cost you tens of thousands later.
Don't get attached to a home before the inspection. Be ready to walk away if something serious comes up.
The Bottom Line
Buying your first home in Texas takes preparation, but with the right guidance, it's completely doable. Working with an experienced mortgage broker who understands Texas-specific programs and the local market can save you thousands of dollars and a lot of stress.
If you're thinking about buying your first home in Texas, reach out to Colton Chase at Texas Made Mortgage to talk through your options and get pre-approved.
Colton Chase | NMLS #2040073 Texas Made Mortgage, LLC | NMLS #2676326 2591 Dallas Pkwy Suite 300, Office 62, Frisco, TX 75034 (817) 718-6269 | Equal Housing Opportunity
This article is for informational purposes only and does not constitute a commitment to lend. Rates and terms are subject to change and based on credit qualification, loan amount, and other factors.