Buying your first home in Texas: the Dallas–Fort Worth process, step by step
Every step and deadline from pre-approval to closing, what you need for the down payment and loan, the Texas assistance programs, and the full cost at one address.
From pre-approval to closing: the resale steps and their deadlines
The days come from the TREC contract (form 20-19, in use from July 1, 2026) and federal lending rules; your signed contract governs. New construction runs on the builder’s contract, on the new-homes page.
Written pre-approval
A lender’s written commitment after checking income, assets and credit. Get it before touring.
Buyer representation agreement
Texas requires a written agreement before an agent shows you any home. It states the agent's compensation, which the law does not set and which is negotiable.
Touring
Tour the shortlist with Jessie and compare layout, location and net cost, not list price.
Offer, contract, earnest money
Earnest money and option fee to the title company within 3 days (paragraph 5A); title commitment within 20 days (paragraph 6B).
Inspection inside the option period
With the option fee paid you can terminate for any reason within the agreed days; the earnest money comes back, the fee does not (paragraph 5B). Inspection, repair requests and renegotiation happen here.
Appraisal and loan approval
What happens if the appraisal comes in low is set in the financing addendum. Read it before signing.
Closing Disclosure three business days before closing
Compare it line by line with the Loan Estimate, then do the final walk-through.
Closing
Sign at the title company, funds arrive, the deed is recorded, keys change hands.
The down payment and the loan
Twenty percent is not a requirement, only the line above which there is no mortgage insurance.
| Loan type | Minimum down payment | Who qualifies | Mortgage insurance |
|---|---|---|---|
| Conventional (Fannie Mae 97% LTV) | 3% | At least one borrower is a first-time buyer; 5% with no such condition | Private mortgage insurance below 20% down; cancel on request at 80% of original value, automatic at 78% |
| FHA | 3.5% | Credit score 580 or higher; 10% down from 500 to 579 | Upfront premium plus an annual premium; with less than 10% down the annual premium runs for the life of the loan |
| VA | 0 | Eligible veterans, service members and some surviving spouses | No monthly premium; a one-time funding fee |
| USDA | 0 | Home in a designated rural area; household income within limits | Guarantee fee |
- What buyers actually put down
- NAR’s 2025 survey: a median 10% for first-time buyers, 23% for repeat buyers.
- Cash beyond the down payment
- Closing costs run 2% to 5% of the price (CFPB), plus moving, early repairs and a reserve.
- The 2026 loan limit in DFW
- $832,750 for a one-unit home in Collin, Dallas, Denton and Tarrant. Above it the loan is jumbo.
- Pre-approval, not pre-qualification
- A pre-approval is a written commitment after verification; a pre-qualification is a verbal estimate sellers ignore.
Texas first-time buyer programs
Two state agencies fund assistance through participating lenders; income and price limits are set by county.
TDHCA: My First Texas Home
A 30-year fixed loan below market with down-payment and closing-cost help. “First-time” means no home ownership in the past three years.
TDHCA: My Choice Texas Home
The same loan and assistance without the first-time requirement.
TSAHC: Homes for Texas Heroes and Home Sweet Texas
Credit score 620 and income within limits; first-time status not required. A grant, or a second lien forgiven after three years.
Stacking is a lender question
Whether a program combines with a 3% or 3.5% loan and a builder incentive depends on the lender. Ask before the offer.
Calculate the full cost address by address
The same list price costs a different amount each month in a different district. Add loan, tax, insurance, HOA and MUD/PID together.
Cash before closing
Closing costs run 2%–5% of the price (CFPB), plus moving, early repairs and a reserve.
Monthly ownership cost
Use the rate and insurance quote for the address, not the seller’s old bill or a metro average.
Loan comparison
Three Loan Estimates for the same home and terms: rate, lender costs, cash to close.
Address due diligence
Flood history, roof and age, claims history, HOA documents, special assessments, commute, resale.
How Dallas property tax is set for an address, with a calculator
Guides for buyers
One question per page, answered in full.
Texas homestead exemption
What it takes off the bill and how to file, including in the year you buy a new home.
Questions buyers ask before and during a purchase
Anything that depends on a specific home or current written terms gets checked again when you decide.
What is the difference between new construction, newer resale and older resale?
New construction gives you the plan and finishes but the timeline and builder contract need checking line by line; resale shows its condition and can be inspected and negotiated, with a repair budget. Of Jessie’s 87 transactions, 62 were new homes: her clients’ choice, not a recommendation.
How much can I borrow?
A lender decides from income, debts, credit and down payment. The ceiling is known: the 2026 conforming limit in the four DFW counties is $832,750, a cap on the loan, not the price.
How much are closing costs?
Plan on 2%–5% of the price (CFPB), excluding the down payment; the Closing Disclosure has the final figure.
What does it cost to own a home each year?
Property tax, insurance, HOA and maintenance. Tax is set by county, city, district and special districts, so it is calculated at the address; the 2025 Texas average premium is $3,506 a year (TDI).
Can I negotiate the price? By how much?
Sometimes. Days on market, lot, selections, closing date and the market set the room. Builders usually give a credit or a buydown rather than a price cut, so convert it to net cost. Anything agreed goes in the signed documents.
How long does it take from first showing to keys?
A completed home can close in weeks; a to-be-built home depends on construction, selections, inspections and the lender. Go by the written schedule and delay provisions.
What should I have ready before contacting Jessie?
A budget range, roughly when you want to move, the places you drive to most, and the type of home. The first conversation carries no commitment; a buyer representation agreement comes before any showing.
Next step
Send Jessie a three-line brief
When you want to move, the areas you are considering, and new construction or resale.