Buying your first home in Texas is an exciting milestone — and with the right preparation, it can be smoother than you think. Whether you're looking at a starter home in Houston, a condo in Dallas, or a family home in San Antonio, this guide walks you through everything you need to know.
The Texas Housing Market in 2026
Texas continues to be one of the most popular states for homebuyers, and for good reason. With no state income tax, a strong job market, and a wide range of housing options, the Lone Star State offers incredible value. In 2026, median home prices vary significantly by metro area, making it possible to find a home that fits your budget whether you're in a major city or a growing suburb.
Key market trends to watch:
- Inventory is stabilizing after years of tight supply, giving buyers more choices
- Interest rates have moderated, creating new opportunities for first-time buyers
- New construction continues in suburbs and exurbs around major metros
Step-by-Step Homebuying Process
1. Check Your Financial Readiness
Before you start browsing listings, take stock of your finances:
- Credit score: Most loan programs require a minimum score of 580-620, though some options exist for lower scores
- Savings: You'll need funds for a down payment (as low as 0-3.5% depending on the loan) and closing costs (typically 2-5% of the purchase price)
- Debt-to-income ratio: Lenders generally want your total monthly debts (including your new mortgage) to stay below 43-50% of your gross income
2. Get Pre-Qualified
This is one of the most important steps. A pre-qualification letter from a lender tells sellers you're a serious buyer and gives you a clear picture of your budget. The process is quick and typically involves reviewing your income, assets, and credit.
3. Find a Real Estate Agent
A buyer's agent represents your interests and helps you navigate the Texas market. Look for someone with experience in your target area and price range.
4. House Hunt and Make an Offer
Once you find the right home, your agent will help you craft a competitive offer. In Texas, the standard contract is the TREC (Texas Real Estate Commission) form.
5. Complete the Loan Process
After your offer is accepted, you'll formally apply for your mortgage, complete an appraisal and inspection, and work through underwriting.
6. Close on Your Home
At closing, you'll sign the final documents, pay your closing costs, and get the keys to your new home!
Loan Options for First-Time Texas Buyers
- FHA Loans: As low as 3.5% down with flexible credit requirements — the most popular choice for first-time buyers
- Conventional Loans: Starting at 3% down for qualified buyers with good credit
- VA Loans: Zero down payment for eligible veterans and active-duty military
- USDA Loans: Zero down payment for eligible properties in rural and suburban areas
Down Payment Assistance Programs
Texas offers some of the best DPA programs in the country:
- TDHCA My First Texas Home: Up to 5% of the loan amount as a forgivable second lien
- TSAHC Home Sweet Texas: Down payment and closing cost assistance for eligible buyers, including teachers, first responders, and veterans
- Local programs: Many cities and counties offer additional assistance — ask your loan officer about options in your area
Tips for Getting Pre-Qualified
- Gather your documents early: Pay stubs, W-2s, tax returns, and bank statements
- Don't open new credit accounts while you're in the homebuying process
- Be honest about your finances — your loan officer is there to help, not judge
- Ask about all your options — there may be programs you don't know about
Ready to Take the First Step?
As a licensed mortgage loan originator serving Texas, I specialize in helping first-time homebuyers find the right loan and navigate every step of the process. Contact me today for a free, no-obligation consultation.