Buying your first home in Texas involves more steps than most people expect — and the order you do them in matters. Skip pre-approval and you may lose a home to another buyer. Skip the inspection option period and you may have no legal way out. This checklist walks you through each phase so you know what is coming before it arrives.

Step 1: Get Your Finances in Order

Before you tour a single home, pull your credit reports from all three bureaus and check for errors. Lenders typically look for a minimum score of approximately 620 for conventional loans, though FHA programs may allow lower scores. Your debt-to-income ratio — all monthly debt payments divided by gross monthly income — should generally be below 43% to qualify for most loan programs.

Save documentation you will need repeatedly: two years of tax returns, two months of bank statements, recent pay stubs, and any gift letter if family is contributing to your down payment. Gathering these early cuts days off the loan process later.

Texas Down Payment Help: The Texas Department of Housing and Community Affairs (TDHCA) offers down payment assistance programs for eligible first-time buyers, including My First Texas Home, which provides up to 5% of the loan amount in assistance. Income and purchase price limits apply and vary by county — verify current eligibility directly with TDHCA or an approved lender.

Step 2: Get Pre-Approved — Not Just Pre-Qualified

Pre-qualification is an informal estimate. Pre-approval means a lender has reviewed your actual documents and issued a conditional commitment. In competitive Texas markets, sellers and their agents routinely reject offers that arrive without a pre-approval letter.

Shop at least two or three lenders and compare the Loan Estimate forms they are required to provide. Look at the annual percentage rate (APR), not just the interest rate, and ask specifically about origination fees and discount points. A lower rate with high points may cost more overall depending on how long you stay in the home.

Step 3: Choose a Licensed Texas Buyer Agent

Under TREC rules, any licensed agent who works with buyers in Texas must have a signed written agreement before showing property. This agreement, commonly called a Buyer Representation Agreement, sets out the agent's fee, the term of the agreement, and what duties they owe you.

Texas REALTORS® who are members of the National Association of REALTORS® are bound by a Code of Ethics on top of TREC licensing requirements. Ask any agent you interview to explain their fee, how it is paid, and whether any portion comes from the seller. You have the right to understand the compensation structure before signing anything.

What TREC Requires: The Texas Real Estate Commission mandates that agents provide buyers with the Information About Brokerage Services notice before providing services. If an agent skips this step, ask for it. It explains the types of agency relationships available in Texas and your rights as a consumer.

Step 4: Search, Tour, and Make an Offer

Once pre-approved and represented, your agent will set up MLS searches matching your criteria. When you find a home, your agent will pull comparable sales to help you determine a competitive offer price. In Texas, the standard purchase contract is the TREC One to Four Family Residential Contract (Resale), a promulgated form that both parties sign.

Key numbers in your offer beyond purchase price:

  • Earnest money — typically 1% of the purchase price, held in escrow. It signals commitment and may be at risk if you back out without a valid contractual reason.
  • Option fee — a separate amount, often a few hundred dollars, paid directly to the seller for an unrestricted right to terminate during the option period (usually 7–10 days). This is your primary exit ramp.
  • Closing date — typically 30–45 days out, depending on your loan type and lender timeline.

Step 5: Inspections, Appraisal, and the Option Period

The option period is one of the most important features of a Texas real estate contract. During this window, you can terminate for any reason and receive your earnest money back — though the option fee is non-refundable. Use this time to schedule a general home inspection and any specialty inspections (foundation, HVAC, roof, sewer scope) your inspector recommends.

Your lender will also order an appraisal. If the home appraises below the contract price and you have an appraisal contingency, you can renegotiate or terminate. Review the appraisal report when it arrives — it affects both your loan amount and your understanding of the property's market value.

Check Flood Zone Status: Texas has significant flood risk in many areas. Before closing, confirm the property's flood zone designation using FEMA flood maps and ask your lender whether flood insurance will be required. Flood insurance is separate from a standard homeowner's policy and can add meaningfully to your monthly costs.

Step 6: Final Walk-Through and Closing Day

A few days before closing, conduct a final walk-through to confirm the property is in the condition you agreed to, that any negotiated repairs are complete, and that the seller's belongings are removed. If something is wrong, address it before you sign — not after.

At the closing table, you will sign the closing disclosure (which your lender must provide at least three business days in advance), the deed of trust, the promissory note, and other loan documents. Bring a government-issued photo ID and a cashier's check or arrange a wire transfer for your closing costs and down payment. Closing costs in Texas typically run approximately 2%–5% of the loan amount, covering title insurance, lender fees, prepaid items, and other charges.

Once all documents are signed and funds are received, the deed records with the county and you receive your keys.

Buying a home in Texas takes preparation, the right team, and a clear understanding of the contract you are signing. Work with a licensed Texas agent (TREC #9015220) who will explain each document before you sign it, and give yourself time at every stage — especially during the option period — to make decisions without pressure.