The first-time homebuyer guide for Texas
Buying your first home in Texas? This guide covers everything from budgeting and apartment hunting to closing and setting up electricity in a state where you can choose your provider. Learn about homebuyer programs, FHA loans and how electricity setup works in Texas.
The first-time homebuyer guide for Texas
Buying your first home in Texas? This guide covers everything from budgeting and apartment hunting to closing and setting up electricity in a state where you can choose your provider. Learn about homebuyer programs, FHA loans and how electricity setup works in Texas.
Learn all about homebuying basics, how much house you can afford, what to ask a real estate agent and more. Plus, common mortgage options, typical closing steps, move-in priorities and how electricity setup in Texas works.
Starting your search by answering these 3 questions can help you focus on what you really want from your new home.
As you compare homes, consider how location, commute, timing and upkeep may affect your daily routine, move-in timeline and overall moving budget.
Potential pros and cons of buying a home compared to building one in Texas
Pros |
Cons |
|---|---|
 Updated finishes and newer systems |
 Purchase price may be higher |
| May need fewer repairs early on |
Upgrade costs can add up |
| Builder warranties may be included |
Less room to negotiate |
| Can feel simpler if the home is already completed |
Neighborhood may feel less established |
| May offer better energy efficiency |
Move-in timing can still shift if construction is not finished |
Pros |
Cons |
|---|---|
| More control over layout and design |
Longer timeline before move-in |
| Can choose finishes based on your style and needs |
Construction delays can happen |
| Everything is brand new from the start |
More decisions throughout the process |
| May include energy-efficient options |
Costs can grow with upgrades or change orders |
| Can plan the home around how you want to live |
May need temporary housing if timing does not line up |
Pros |
Cons |
|---|---|
| Purchase price may be lower |
May need repairs or updates over time |
| More room to negotiate |
Systems like the roof and HVAC may be older |
| Older neighborhoods with trees and parks |
Energy efficiency may be lower |
| Larger yards or unique design details |
Layout or design may feel dated |
| Move-in timing may vary |
Maintenance costs can add up over time |
Texas homeowners pay an average of $3,500 per year for insurance that helps protect their home, belongings and potential damage from events like storms.1
Whether you’re hiring movers or doing part of the work yourself, moving costs can range from around $1,000 to $3,000 for many local Texas moves.3
From turning on utilities to buying essentials for your space, home setup costs can add a few thousand dollars to your move-in budget.4
Before touring homes, you’ll sign a written buyer agreement outlining services, terms and how your agent may be compensated.
Following the National Association of Realtors® (NAR) practice changes that took effect on August 17, 2024, agents working with buyers must enter into a written buyer agreement before a buyer tours a home.6
Before signing an agreement, you may want to ask about the agent’s:
A real estate agent is someone licensed by the state to help you buy or sell a home, while a Realtor is a licensed agent and member of the NAR with extra rules and tools.
Texas homebuyers may be able to explore assistance programs offered through the Texas State Affordable Housing Corporation (TSAHC) and the Texas Department of Housing and Community Affairs (TDHCA). Program details, income limits and availability can vary by county and loan type.
Make the process more manageable by starting with these steps:
To apply for a home loan, you may need:
Each loan type works a little differently, and requirements can depend on the property you’re interested in, your credit profile and the lender you choose.
Conventional loans typically come from traditional lenders like banks, credit unions and mortgage companies. Down payment, credit and qualification requirements can vary by lender.
FHA loans, through the Federal Housing Administration, may let eligible buyers put less money down than with some other loans.
Veterans, active-duty service members and some surviving spouses may qualify for a VA loan, which can offer more flexibility for eligible homebuyers.
Through the U.S. Department of Agriculture, USDA loans may be available to eligible buyers, depending on the property and program requirements.
After you find a home, the next steps usually move from offer to inspection, lender review and closing.
Use these steps to get electricity and other services ready before move-in.
Moving can be an exciting but stressful process. Staying organized and preparing for your move early will help you avoid last-minute chaos. Here are some moving tips and checklists to keep you prepared from start to finish.
Building a home in Texas can offer customization and newer features while buying an existing home may provide faster move-in and established neighborhoods. The right choice depends on your budget, timeline, location preferences and tolerance for construction decisions and delays.
Down payment requirements in Texas depend on the loan type, lender and your financial profile. Some buyers may qualify for low down payment options while others choose to put more down to lower monthly payments. Assistance programs can also help reduce upfront costs for eligible buyers.
Home maintenance costs vary by home age, size and location. Many homeowners plan for ongoing repairs, seasonal upkeep and long-term replacements like roofs or HVAC systems. Building a maintenance budget early can help you avoid surprises and protect your investment.
Los préstamos FHA son hipotecas respaldadas por el gobierno diseñadas para que la compra de una vivienda sea más accesible, especialmente para los que compran por primera vez. Normalmente incluyen pagos iniciales más bajos y requisitos de crédito más flexibles que los préstamos convencionales. Los préstamos FHA pueden ser una buena opción si tienes ahorros limitados, un historial crediticio corto o un puntaje de crédito bajo.
The NAR settlement changed how real estate agent compensation is disclosed and negotiated. Buyers in Texas may now have more direct conversations about agent fees and service agreements before touring homes, making costs clearer and encouraging more transparency during the buying process.
Texas offers several first-time homebuyer assistance options through state and local housing organizations. These programs may include down payment assistance, competitive mortgage rates and tax credits for eligible buyers. Availability and benefits vary by location, income and home price, so it’s important to compare programs early in your search.
A Texas Mortgage Credit Certificate (MCC) is a program that may allow eligible homeowners to claim a portion of their mortgage interest as a federal tax credit each year. This can help lower overall tax liability and improve affordability, but eligibility rules and limits apply.
On closing day in Texas, you’ll review and sign final loan and ownership documents, confirm funds and receive the keys once the transaction is complete. Bring valid ID and be prepared to review paperwork carefully. Your lender or title company will guide you through each step.
In much of Texas, you can choose your electricity provider. To set up service, compare plans, select a provider and schedule a start date before you move in. You’ll typically need your address, ID and preferred start date to enroll.
No. While most of Texas is part of a deregulated electricity market, retail electricity choice is only available in deregulated service areas. Homes in municipal or co-op areas are not eligible, so availability depends on your exact address.
Start by confirming utilities are active, changing locks if needed and locating key shut-off valves and breaker panels. Then update your address, unpack essentials and document your home’s condition. Taking care of these basics helps you settle in with confidence.
1 Texas Department of Insurance: Texas Homeowners Insurance Market Overview
2 Dwellverse Group: Texas Property Tax Calculator
3 Living Local Texas: What You Really Need to Budget for When Moving to Texas: 2025 Edition
4 Harris County Tax Office: Moving to Texas
5 Today’s Homeowner: How Much Money Should You Save for Home Maintenance?
7 ChooseMyPower.org: Texas Electricity Deregulation Explained
