First-Time Homebuyer's Guide
Free guides and checklists to help you prepare for pre-approval, protect your credit while your loan is in process and know what to expect on the way to closing.
- Do's and don'ts
- Homebuyer checklists
- Step-by-step guidance
The basics
Prepare with confidence
Buying your first home comes with a lot of new terms, paperwork and decisions. Our homebuyer resources break the process into clear steps, from getting your documents ready for pre-approval to keeping your credit steady until closing, so you know what to expect and what to avoid along the way.
- Covers
- Pre-approval to closing
- Includes
- Do's, don'ts & checklists
- Support
- Licensed loan officers
How it works
The homebuying process in four steps
A quick look at the road from saving to closing. Our guides below go deeper on each step.
- 01
Get your finances ready
Check your credit, set a budget and start saving for your down payment and closing costs.
- 02
Get pre-approved
Gather pay stubs, tax returns and bank statements so a loan officer can review your options and issue a pre-approval letter.
- 03
Shop and make an offer
Tour homes within your budget. Once your offer is accepted, the home is appraised and your loan goes to underwriting.
- 04
Close and get your keys
Avoid new credit or big purchases until closing, review your Closing Disclosure, then sign and move in.
Texas, step by step
How to buy a home in Texas
The details of every purchase differ, but most Texas home purchases follow these steps. Your loan officer and real estate agent will guide you through each one.
Check your credit and budget
Review your credit reports, pay down balances where you can and estimate a comfortable monthly payment, including taxes and insurance. Our mortgage calculators can help.Choose an agent and shop
A Texas real estate agent can help you find homes, compare prices and write an offer. Most Texas resale purchases use the standard contract forms promulgated by the Texas Real Estate Commission (TREC).Make an offer and sign the contract
Your offer sets the price, closing date, any seller help with closing costs, the earnest money amount, and whether you are paying an option fee for a termination option period.Deliver earnest money and option fee
After the contract is signed, you deliver earnest money to the title company (the escrow agent) and the option fee by the deadlines in the contract.Inspect during the option period
Use the option period to schedule a home inspection and any other inspections, review the seller's disclosure and negotiate repairs, or terminate if the home isn't right for you.Finish your loan, appraisal and title
You formally apply and receive a Loan Estimate within three business days. The lender orders an appraisal and underwriting reviews your file while the title company prepares the title commitment and, if needed, a survey.Final walk-through and closing
You receive your Closing Disclosure at least three business days before closing. Do a final walk-through, then sign at the title company and get your keys once the loan funds.
Plan your cash
Costs to expect when buying a home
Your purchase price is only part of the cash you need. Budget for these costs from the start so there are no surprises at closing.
Down payment
From nothing for eligible VA and USDA borrowers, to 3% for qualified conventional buyers and 3.5% for FHA with a 580+ score. More down lowers your payment and, on conventional loans, 20% avoids PMI.Earnest money
A good-faith deposit held by the title company and usually credited toward your down payment or closing costs at closing. The amount is negotiated in your contract.Option fee
A typically small, negotiated payment to the seller for the right to terminate during the option period. If you close, the contract may credit it to you at closing.Inspections and appraisal
Expect to pay for a general home inspection and any specialist inspections, such as foundation, roof or pest. The appraisal fee is usually part of your loan costs.Closing costs
Lender and third-party fees, title insurance, recording fees and survey costs. In Texas, title insurance premiums are set by the Texas Department of Insurance. Your Loan Estimate itemizes these costs.Prepaids and escrow
Your first year of homeowners insurance and initial deposits for property taxes and insurance into escrow. Property taxes are a large part of the monthly cost in Texas.
Texas contract basics
Option period and earnest money explained
Two parts of the Texas purchase contract that new buyers often ask about. This is general information, not legal advice; your agent or a real estate attorney can explain your specific contract.
What the option period is
In exchange for the option fee, the buyer gets an unrestricted right to terminate the contract for any reason during a set number of days. The length is negotiated and written into the contract.Why it matters
It is your window to inspect, get repair estimates and negotiate. If you terminate on time, you generally get your earnest money back, but the seller keeps the option fee.How earnest money is protected
Earnest money is held by the escrow agent, usually a title company. Outside the option period and other contract contingencies, such as financing or appraisal terms, backing out may put it at risk.
Free resources
Homebuyer's guide
Download a guide to keep handy while you shop, apply and close.
Homebuyer's guide
Our first-time homebuyer do's and don'ts guide helps keep your credit score and qualifications steady while your loan is in process.
Coming soonHomebuyer checklists
Stay organized with checklists for mortgage pre-approval, the documents you'll need, and saving for your down payment and closing costs.
Coming soon6 steps to homeownership
Learn the key steps of buying a home, from pre-approval and house hunting to closing, with HomyLoan by your side.
Coming soonHomeownership benefits
Discover how owning a home can help you build equity and stability, and how HomyLoan helps families reach that milestone.
Coming soon
Homebuyer FAQs
Start by checking your credit and budget, then get pre-approved by a licensed loan officer. A pre-approval tells you your price range and makes your offer stronger.
An option period is a negotiated number of days after the contract is signed when the buyer can terminate for any reason. The buyer pays the seller an option fee for this right.
Usually yes if you terminate within the option period or under another contract contingency. If you back out for a reason the contract does not allow, the seller may be entitled to keep it.
Plan for your down payment, earnest money, option fee, inspections and closing costs, plus prepaid taxes and insurance. Your Loan Estimate shows your estimated cash to close.
Texas closings are usually handled by a title company, which holds earnest money, issues title insurance and conducts the signing.
Yes, if the home is your primary residence. A Texas homestead exemption, filed with your county appraisal district, can lower your property taxes.
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