How to Buy Your First Home in Texas: A Step-by-Step Guide (2026)

Published May 23, 2026 · Updated June 2, 2026 · ReKeyGenAI Editorial Team

Buying your first home in Texas involves pre-approval, finding a TREC-licensed REALTOR®, the option period, inspections, and closing. This guide walks you through every step of the Texas homebuying process.

Step 1: Check Your Financial Readiness

Before searching for homes, get a clear picture of your finances. Pull your credit report (free at AnnualCreditReport.com), pay down high-interest debt, and avoid opening new lines of credit. Most Texas mortgage lenders require a minimum 620 credit score for conventional loans, though FHA loans allow scores as low as 580 with 3.5% down.

Save for more than just the down payment. Closing costs in Texas typically run 2–3% of the purchase price. On a $350,000 home, that's $7,000–$10,500 in addition to your down payment. Texas first-time buyers can tap TDHCA programs for down payment assistance — see our guide to Texas First-Time Buyer Programs.

Step 2: Get Pre-Approved (Not Just Pre-Qualified)

A pre-qualification is an informal estimate. A pre-approval is a formal underwriting review of your income, assets, and credit — and it's what Texas sellers require before considering your offer. Get pre-approved with a licensed Texas mortgage lender before you start touring homes.

Your pre-approval letter specifies the maximum loan amount, interest rate type, and loan program. Bring this letter to every home tour — without it, many Texas listing agents won't show you properties. Browse licensed Texas Loan Officers on ReKeyGenAI to start the process.

Step 3: Find a TREC-Licensed Buyer's Agent

Since August 2024, Texas law requires REALTORS® to have a signed Buyer Representation Agreement before showing homes. Your buyer's agent is legally required to represent your best interests — including negotiating price, identifying defects, and guiding you through the Texas-specific contract forms.

In most Texas transactions, the seller pays the buyer agent commission — making professional buyer representation effectively free to you. Find a verified TREC-licensed REALTOR® on ReKeyGenAI and check their client reviews before you reach out.

Step 4: Search for Homes and Make an Offer

Your agent will search the MLS for homes matching your criteria and schedule tours. When you find the right home, your agent prepares a TREC-approved purchase contract specifying price, closing date, and contingencies. Key Texas offer terms include:

• Option Period: A negotiated window (typically 5–10 days) where you can back out for any reason and receive your earnest money back, in exchange for a non-refundable option fee paid to the seller.
• Earnest Money: A good-faith deposit (typically 1% of purchase price) held in escrow by a title company.
• Title Company: Texas uses title companies (not attorneys) to handle closings. Your agent recommends reputable title companies.

Step 5: Complete Inspections During the Option Period

During the option period, hire a licensed Texas home inspector to examine the property. Cost ranges from $300–$600. Your inspector will check the foundation, roof, HVAC, plumbing, electrical, and appliances. Common Texas-specific concerns include foundation movement (pier-and-beam vs. slab), HVAC capacity for Texas summers, and drainage.

If major issues are discovered, your agent can negotiate repairs, seller credits, or a price reduction — or help you walk away during the option period without losing your earnest money.

Step 6: Secure Your Mortgage and Clear Conditions

After the option period, your lender orders an appraisal and processes your full loan application. You'll receive a list of "conditions" to clear — typically pay stubs, bank statements, and explanations for any unusual deposits. Respond to lender requests within 24 hours to avoid delaying your closing date.

Step 7: Final Walk-Through and Closing

The day before or morning of closing, conduct a final walk-through to confirm the property is in the agreed condition and any negotiated repairs are complete. Closing typically takes 60–90 minutes at the title company. Bring your ID and a cashier's check or wire transfer for closing costs. You'll sign ~100 pages of documents and receive your keys!

Texas Closing Cost Breakdown (Typical)

• Lender origination fees: 0.5–1% of loan amount
• Title insurance (owner's + lender's): $1,500–$3,500
• Escrow setup (taxes + insurance prepaid): 2–4 months
• Recording fees: $100–$300
• Home inspection: $300–$600
• Appraisal: $500–$800

Ready to start? Find a TREC-licensed Texas REALTOR® or connect with a licensed Texas Loan Officer on ReKeyGenAI.

Find a licensed Texas REALTOR®: ReKeyGenAI Agent Directory · Licensed Texas Loan Officers · Dallas REALTORS® · More Texas Real Estate Guides