Buying your first home in Texas has never been a small decision, but in today’s market, it feels more like a high-stakes game. With interest rates in flux, limited housing inventory in many areas, and more buyers entering the field, first-time buyers need more than enthusiasm. They need a game plan.
If you’re a first-time buyer navigating the Texas real estate market, consider this your playbook. With the right steps, you can move with confidence, avoid common setbacks, and land the home that fits your lifestyle and budget.
Understanding the Current Playing Field
The housing market in Texas is shifting. While cities like Austin and Dallas have seen rapid growth over the last few years, smaller metros like Killeen and McAllen are now emerging as hotspots for first-time buyers. Why? Lower median home prices, increasing inventory, and strong local economies make them ideal for those looking to enter the market without overextending financially.
Buyers still face competition, but unlike previous years, rising interest rates have cooled bidding wars slightly. That creates an opportunity for strategic buyers who come prepared.
Step 1: Get Pre-Approved Early
Pre-approval is no longer optional. It’s the first move in your game plan.
Sellers want to know that a buyer has the financial backing to close. A pre-approval letter signals that your income, assets, credit, and debts have been verified by a lender. It tells sellers that you’re serious and ready to act.
If you’re unsure where to start, Herring Bank offers tools and local insight to help you get a mortgage in Texas that fits your needs. Working with a Texas-based lender also helps in navigating state-specific requirements and property tax structures.
Step 2: Build a Local Real Estate Team
Don’t go it alone. In a competitive market, the right support system makes all the difference.
Work with a real estate agent who specializes in your target area. They’ll have access to listings before they hit the market and can help craft offers that stand out. Partner this with a local lender who understands the nuances of Texas markets, including any regional incentives, programs, or regulations.
Your agent and lender should work in tandem to ensure your financing timeline lines up with seller expectations.
Step 3: Expand Your Search
First-time buyers often lock in on big-name cities, but some of the best deals can be found just outside major metros.
Cities like Temple, Lubbock, and Brownsville offer affordable housing options, growing job markets, and access to quality amenities. Many of these areas also qualify for government-backed loans such as FHA, which can make homeownership more accessible with lower down payments and credit flexibility.
Not familiar with FHA loans? You can learn more about the program here. This type of financing is especially helpful if you’re working with limited savings but have stable income and rental history.
Step 4: Be Strategic with Offers
In a balanced market, winning isn’t about overpaying. It’s about being smart.
Instead of going significantly over asking price, consider making your offer more appealing through terms. Sellers often prioritize certainty over top-dollar. A few ways to strengthen your offer include:
- Offering flexible closing dates
- Shortening inspection periods
- Paying for your own title policy or minor repairs
- Submitting a larger earnest money deposit
Work with your agent to identify what matters most to the seller. Sometimes, timing or simplicity wins over price.
Step 5: Understand the True Costs
Texas has some of the highest property tax rates in the nation. Before falling in love with a home, calculate the full monthly payment, which includes not just your mortgage principal and interest, but also taxes, insurance, and possibly HOA dues.
Your lender can help break down these costs clearly. This is another reason why it helps to work with a Texas-based mortgage team that understands local tax trends.
Step 6: Stay Flexible but Focused
It’s important to know your must-haves and your nice-to-haves. Some buyers lose out on good homes because they hold out for perfection. Others make rushed decisions and regret it later.
Have a firm budget, know your financing boundaries, and stay open-minded. Sometimes a minor fixer-upper can be turned into your dream home with a little creativity and effort.
Step 7: Prepare for the Long Game
Buying a home doesn’t end with the offer. Be prepared for the inspection, appraisal, and underwriting process. Each step can reveal new challenges that need quick decisions.
Have your documents ready, stay in touch with your lender and agent daily, and don’t make major financial changes before closing. Avoid applying for new credit, switching jobs, or large purchases during this time.
Final Thoughts
There is no perfect formula for buying your first home in Texas, but there is a way to win. With the right preparation, team, and financing, first-time buyers can compete confidently in today’s evolving market.
If you’re ready to take that next step, explore your mortgage options with a lender who understands Texas. Start your journey with Herring Bank’s mortgage resources and take the time to explore whether an FHA loan might be right for your financial situation.