Signature Solution
Your First Home, Without the Guesswork.
Buying your first home is mostly an information problem. Once you know what the numbers are, what the steps are, and what each one costs, the fear drops away and it becomes a project you can manage.
First-Time Homebuyers: What You Need to Know
Nobody teaches this. You are expected to make the largest financial decision of your life using advice from a coworker and a rate you saw in an ad. My approach with first-time buyers is education first: we talk through your budget, your credit, your timeline, and your options before anyone fills out an application. There is no pressure to buy right now — if the right answer is to wait six months and fix two things, I will say so.
Who This Is For
- Renters who suspect they could buy but are not sure where to start
- Buyers who have not owned a home in the past three years, which most programs still count as first-time
- Young families who need to know their real numbers before touring homes
- Buyers worried their credit or student loans disqualify them
- Anyone who wants the process explained without being sold to
Start With the Free First-Time Homebuyer Guide
Everything on this page, expanded — plus a printable checklist, a budget worksheet, and the document list underwriting will ask for. Read it before you talk to anyone, including me.
- What you can afford versus what you will be approved for
- Texas-specific costs: property taxes, option fee, title
- The seven steps from first conversation to keys
No cost, no obligation, and your email is never sold or shared.
How It Works
Your First-Time Homebuyers Roadmap
No mystery steps, no waiting a week to hear back. Here is exactly how the process runs from first call to closing table.
- 1
Set the budget
We start with what you are comfortable paying each month and work backward to a price range, including taxes, insurance, HOA dues, and mortgage insurance. Texas property taxes are high, and ignoring them is the most common first-time budgeting mistake.
- 2
Get preapproved
Credit, income, and asset documentation are reviewed and underwritten. You get a letter your agent can send with an offer, plus a clear picture of your cash to close.
- 3
Shop with your agent
You tour homes knowing exactly what each price point costs monthly. I am available for real-time payment scenarios while you are standing in a driveway deciding.
- 4
Make the offer
Your agent structures the offer, and I call the listing agent to back up your preapproval. That call has won plenty of contracts for my clients.
- 5
Inspect and negotiate
During the Texas option period you inspect the home and can negotiate repairs or walk away. This is your protection window — use all of it.
- 6
Underwriting and appraisal
The lender verifies everything and the appraiser confirms value. Underwriting conditions are normal, not a sign of trouble. I chase them so you are not scrambling.
- 7
Close and get your keys
You review the Closing Disclosure at least three business days ahead, sign at the title company, and the home is yours.
Key Benefits
Why Borrowers Choose This Program
You get real numbers before you shop
Payment, cash to close, and the price range that actually fits your life rather than the maximum a computer will approve. Those are two very different numbers and confusing them is how people end up house poor.
Access to assistance programs
Texas grant and second-lien programs can cover much of the down payment for eligible buyers. We check what you qualify for as part of the first conversation, not as an afterthought.
A preapproval sellers take seriously
Fully underwritten, not a computer-generated letter. In a market with multiple offers, the strength of your preapproval is often the difference between getting the house and getting a call from your agent.
A guide through every step
Inspection, appraisal, option period, underwriting conditions, closing disclosure. You get an explanation of each one before it happens, so nothing surprises you.
Let’s Name Them
Five Fears That Keep People Renting
Every first-time buyer has at least three of these. None of them are silly, and all of them have real answers.
“What if I get denied and everyone finds out?”
A preapproval conversation is private and costs nothing. If the answer today is not yet, you get a specific plan instead of a rejection — and nobody but you and I ever knows we talked.
“What if I buy and the market drops?”
Nobody can promise short-term appreciation. What a fixed mortgage does promise is that your principal and interest payment will be the same in year ten as it is in year one, while rent will not be. Buy for a horizon of five years or more and short-term movement matters far less.
“What if something breaks and I cannot afford it?”
Real concern, real answer: budget roughly 1% of the home value per year for maintenance, get a thorough inspection during your option period, and consider a home warranty for the first year. We build this into the budget conversation before you shop.
“What if I am overpaying?”
Your agent runs comparable sales and the lender orders an independent appraisal. If the appraisal comes in below the contract price, you have negotiating leverage and, in most contracts, an exit. Two separate checks stand between you and overpaying.
“What if I do not have enough saved?”
You probably need less than you think. Between 3% conventional, 3.5% FHA, zero-down VA, seller concessions, and Texas assistance programs, the actual cash requirement is often a fraction of the 20% people assume.
Cash to Close
How Much Money You Actually Need
The down payment is only part of it. Here is every dollar a Texas first-time buyer should plan for.
Earnest money
Held by title, credited back to you at closing
About 1% of the price
Option fee
Buys your right to terminate during the option period
$200–$500
Inspection
Paid directly to the inspector, usually within the first week
$400–$600
Appraisal
Paid to the lender or appraisal management company
$500–$700
Down payment
Depends on the program; assistance may reduce it further
0%–5% typical
Closing costs
Seller concessions can offset part or all of this
2%–3% of the price
Ranges are typical for Central Texas and are estimates only. Your actual figures depend on price, program, and negotiated terms, and will be disclosed in writing on your Loan Estimate.
Glossary
Twenty Terms You’ll Hear, Defined
You should never nod along to a word you do not know. Here are the ones that come up most.
The schedule that splits each payment between interest and principal. Early payments are interest-heavy; the balance shifts toward principal over time.
An independent opinion of the property’s value, ordered by the lender, used to confirm the home is worth what you agreed to pay.
Annual percentage rate. The interest rate plus certain financing costs, expressed as a yearly figure, intended to make loan offers comparable.
The fees paid at closing for the loan, title, escrow, recording, and prepaid taxes and insurance. Typically 2% to 3% of the purchase price for a buyer.
The final itemized statement of your loan terms and costs. Federal law requires you to receive it at least three business days before closing.
A condition in the contract that must be met for the sale to proceed, such as financing, appraisal, or the sale of your current home.
Your total monthly debt payments divided by gross monthly income. One of the primary numbers underwriting uses to size your loan.
The portion of the purchase price you pay out of pocket rather than borrowing. Ranges from 0% to 20% or more depending on program.
A good-faith deposit made after your offer is accepted, held by the title company and credited to you at closing.
The difference between what your home is worth and what you owe on it. It grows through payments, appreciation, and improvements.
An account your servicer uses to collect and pay property taxes and insurance on your behalf as part of the monthly payment.
A standardized three-page document showing your estimated rate, payment, and closing costs, provided within three days of application.
Your loan amount divided by the property value. An 80% LTV means 20% equity, which is the threshold where mortgage insurance typically ends.
Insurance that protects the lender when a borrower puts down less than 20%. Conventional PMI cancels with equity; FHA MIP generally does not.
A negotiated window in Texas contracts, usually seven to ten days, during which you can terminate for any reason after paying the option fee.
A lender charge for processing the loan, expressed as a percentage of the loan amount or a flat dollar figure. Disclosed on your Loan Estimate.
Principal, interest, taxes, and insurance — the four components of a typical monthly mortgage payment. Add HOA dues and mortgage insurance where applicable.
Prepaid interest paid at closing to lower your rate. One point equals 1% of the loan amount and is worth doing only if you keep the loan past the break-even.
A lender review of your actual documents resulting in a conditional commitment. Stronger than prequalification and what sellers expect to see.
The lender’s formal review of your credit, income, assets, and the property to make the final approval decision.
At a Glance
The Numbers, Plainly
Guidelines shown are general and current as of publication. Program availability varies by state, property, and borrower eligibility, and all loans are subject to full underwriting approval.
- Minimum down payment
- As low as 0% (VA/USDA), 3% conventional, 3.5% FHA
- First-time definition
- Generally no ownership interest in a primary residence for 3 years
- Typical credit score
- 580 for FHA, 620 for conventional
- Cash needed beyond down payment
- Earnest money, option fee, inspection, appraisal, closing costs
- Typical preapproval time
- Same day to 24 hours
- Typical closing timeline
- 21–30 days from contract
Myths & Misconceptions
Things People Believe That Cost Them Money
You need 20% down.
The median first-time buyer down payment is nowhere near 20%. Between 3% conventional, 3.5% FHA, zero-down VA and USDA, and down payment assistance, most first-time buyers put down far less.
Student loans mean you cannot buy.
Student loan payments count in your debt-to-income ratio, but they do not disqualify you. There are specific calculation rules for income-driven and deferred payments that often help more than borrowers expect.
You should wait for rates to drop.
Nobody can time that, and lower rates typically bring more buyers and higher prices. The better question is whether the payment fits your budget today. If rates fall later, you refinance.
Client Experience
“Jason made the mortgage process incredibly easy and was always available to answer our questions.”
Homebuyer
Austin, TX
Testimonials reflect individual experiences. Results vary and are not a guarantee of future outcomes.
Not sure this is your program?
That is what the free strategy call is for. Twenty minutes, no obligation, and you leave knowing which financing path actually fits your situation.
Book a Free Strategy CallYou May Not Need to Save as Long as You Think
Texas down payment assistance programs offer grants and forgivable second liens that can cover most or all of a down payment for eligible buyers. Income limits are usually higher than people expect, and target-area purchases often waive the first-time requirement entirely.
Questions
First-Time Homebuyers FAQs
Beyond the down payment, budget for earnest money (often 1% of the price, credited back at closing), an option fee of a few hundred dollars, an inspection around $400 to $600, an appraisal of $500 to $700, and closing costs of roughly 2% to 3%. Some of that can be covered by seller concessions or assistance programs.
580 opens FHA at 3.5% down and 620 opens conventional. If you are below that, we build a specific plan — usually a few targeted moves that raise a score within 30 to 60 days.
Preapproval is same-day to 24 hours. House hunting varies. Once you are under contract, 21 to 30 days is typical in Texas. Most first-time buyers go from first call to closing in about 45 to 60 days.
A negotiated window, commonly seven to ten days, during which you pay a small fee for the unrestricted right to terminate the contract for any reason. It is when your inspection happens, and it is the strongest buyer protection in the Texas contract.
Absolutely. Touring homes without knowing your numbers wastes your time and risks falling for something out of reach. It also means that when you find the right house, your offer goes out the same day instead of a week later.
Let’s Solve Your Mortgage Situation.
Apply online in about 12 minutes, or grab a free 20-minute strategy call. Either way, you’ll leave knowing more than you do right now.