First-Time Buyers

The Complete First-Time Homebuyer Guide for Texas in 2026

February 5, 2026 | 10 min read

Our Texas mortgage specialists work with first-time buyers every day. These tips come straight from the front lines of lending.

Step 1: Assess Your Financial Readiness

Before you start browsing listings, take an honest look at your finances. Check your credit score -- you will need at least 580 for an FHA loan or 620 for a conventional loan. Review your debt-to-income ratio (DTI); most lenders want it below 43%. Use our affordability calculator to see what you can realistically afford.

Step 2: Save for a Down Payment

In Texas, you have several down payment options:

• Conventional: 3-20% down (20% avoids PMI)
• FHA: 3.5% minimum
• VA: 0% down for eligible veterans
• USDA: 0% down in eligible rural areas

Texas also offers down payment assistance through the My First Texas Home program, which can provide up to 5% of your loan amount.

Step 3: Get Pre-Approved

A mortgage pre-approval letter shows sellers you are serious and financially qualified. It also helps you understand your budget before you fall in love with a home you cannot afford. The pre-approval process typically takes 1-3 business days and involves a credit check and income verification.

Step 4: Find a Texas Real Estate Agent

A good buyer's agent knows the local market, can identify potential issues with properties, and negotiates on your behalf. In Texas, the seller typically pays the buyer's agent commission, so this expertise costs you nothing out of pocket.

Step 5: House Hunt Strategically

Create a prioritized list of must-haves versus nice-to-haves. Research school districts (even if you do not have children, as they affect resale value), commute times, flood zones, and property tax rates. Remember, Texas has no state income tax but property taxes are higher than the national average.

Step 6: Make a Strong Offer

Your agent will help you craft a competitive offer based on comparable sales. In the current Texas market with 42 days average on market, you have some room to negotiate, but well-priced homes in desirable areas still move quickly.

Step 7: Navigate Inspection and Closing

Always get a home inspection -- it typically costs $300-$500 and can save you thousands. In Texas, closing costs average 2-5% of the purchase price. See our closing costs guide for a detailed breakdown.