FOR BUYERS - FIRST TIME BUYERS
The First-Time Home Buyer's Guide
Everything a first-time buyer needs — from budget to keys — from Dallas to San Antonio, Denton County to Bexar County.
IN THIS GUIDE
1.
What you can actually afford
Forget the number a quick online calculator spits out — the real standard lenders use is the 28/36 rule. Your total housing payment (principal, interest, taxes, and insurance — often called PITI) shouldn’t exceed 28% of your gross monthly income, and all your debt combined, including that housing payment, shouldn’t exceed 36%. On a $90,000 salary, that’s roughly $2,100 a month for the mortgage itself.
That number isn’t the whole picture, though. Property taxes, insurance, HOA fees, and ongoing maintenance — often 1-2% of the home’s value every year — all eat into what “affordable” really means day to day. The house you can technically get approved for and the house that actually leaves you breathing room are sometimes two different numbers. Figuring out yours before you start touring homes saves you from falling for one you can’t comfortably keep.
2.
Getting pre-approved
Pre-approval is a step up from a quick estimate — the lender actually verifies your income, pulls your credit, and reviews your documents before giving you a conditional commitment for a specific loan amount. It’s what sellers take seriously when you make an offer, and it’s what tells you what you can really afford, not just what you might qualify for on paper.
Where that number lands depends heavily on your credit and debt-to-income ratio, which is exactly what determines which loan programs are on the table for you. If you’re not sure where you stand before starting this process, our guide to qualifying for a loan breaks down the credit score and DTI basics lenders actually look at.
3.
Down payment & assistance
Down payments range more than people expect — FHA loans allow as little as 3.5% down with a 580+ credit score, VA loans can require none at all for eligible veterans, and conventional loans typically start around 5%. But the number on the loan program isn’t necessarily the number you’ll pay out of pocket, since Texas has real assistance available that can cover a meaningful chunk of it.
Programs through the state, from Dallas to San Antonio, from Denton County to Bexar County, can provide thousands of dollars toward your down payment or closing costs — some as grants you never repay. Our guide to down payment assistance in Texas breaks down which programs exist, who qualifies, and how to apply.
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4.
Finding the right neighborhood
The right neighborhood isn’t just about the house — it’s about commute times, school zones if that matters to you, walkability, and how the area’s likely to look in five years, not just how it looks today. Texas’ neighborhoods vary more than newcomers expect: what fits a young professional near downtown looks nothing like what works for a family in Round Rock or Pflugerville, and prices (and tradeoffs) shift block by block, not just zip code by zip code.
This is also where having a GC’s eye helps beyond just the house itself — knowing what’s being built or rezoned nearby can tell you whether a quiet street stays quiet, or whether that “up-and-coming” label is backed by anything real. The goal isn’t finding the “best” neighborhood — it’s finding the one that actually fits how you live, and holds its value while you’re in it.
5.
Making an offer & closing
Once you’ve found the house, your offer includes more than just the price — earnest money (typically 1-2% of the purchase price, showing you’re serious), and in Texas specifically, an option period: a short window, often 7-10 days, where you can have the home inspected and back out for any reason, for a small option fee. This is one of the most useful protections Texas buyers have, and it’s worth using fully rather than rushing through it.
From there, closing is mostly a waiting game punctuated by paperwork — appraisal, final loan approval, a title search, and a walkthrough right before signing. Closing costs typically run 2-5% of the purchase price on top of your down payment, covering things like lender fees, title insurance, and prepaid taxes. It’s not the fastest process, but it’s a fairly predictable one once you know what’s coming.
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