The Complete First-Time Home Buyer's Guide for North Texas (2025)

Buying your first home is one of the most exciting—and sometimes overwhelming—milestones in life. As a licensed real estate agent serving the North Texas area for over six years, I've helped hundreds of first-time buyers navigate this journey successfully. This comprehensive guide will walk you through every step of the home buying process, with insights specific to the Dallas-Fort Worth market.

Understanding the Current North Texas Market (2025)

The North Texas real estate market continues to be one of the most dynamic in the nation. According to the National Association of REALTORS®, pending home sales increased 4.0% in August 2025, with the Midwest and South regions showing particularly strong growth.

NAR Chief Economist Lawrence Yun notes: "Lower mortgage rates are enabling more homebuyers to go under contract. In the Midwest, low mortgage rates combined with high levels of affordability are attracting more buyers compared to other regions."

Step 1: Prepare Your Finances

Check and Improve Your Credit Score

Your credit score is one of the most critical factors in determining your mortgage eligibility and interest rate. According to the Consumer Financial Protection Bureau (CFPB), reviewing your credit report should be your first step.

Action Steps:

• Get your free annual credit report from AnnualCreditReport.com
• Review for errors and dispute any inaccuracies
• Pay down high-balance credit cards
• Avoid opening new credit accounts before buying
• Set up automatic payments to avoid late payments

Calculate Your Budget

The CFPB recommends using their spending tracker to understand your current financial situation before committing to a mortgage.

Save for Your Down Payment and Closing Costs

While 20% down is ideal to avoid private mortgage insurance (PMI), many first-time buyers purchase with less:

• Conventional Loans: As low as 3% down for qualified buyers
• FHA Loans: 3.5% down payment minimum
• VA Loans: 0% down for eligible veterans and service members
• USDA Loans: 0% down for rural property purchases

Don't Forget Closing Costs: Budget an additional 2-5% of the purchase price for closing costs, which include:

• Loan origination fees
• Appraisal and inspection fees
• Title insurance and search fees
• Prepaid property taxes and insurance
• HOA transfer fees (if applicable)

Step 2: Get Pre-Approved for a Mortgage

Getting pre-approved is essential in today's competitive market. According to the CFPB, pre-approval "gives you an edge" when making offers.

Pre-Qualification vs. Pre-Approval

Documents You'll Need for Pre-Approval

• Last 2 years of tax returns
• Recent pay stubs (last 30 days)
• Last 2 months of bank statements
• Photo ID (driver's license)
• Social Security card
• Proof of other assets (retirement accounts, investments)
• Documentation of other income sources

Step 3: Find the Right Real Estate Agent

Working with an experienced local agent who understands the North Texas market is crucial. A good agent will:

• Help you understand current market conditions in your target areas
• Identify properties that meet your needs and budget
• Schedule and accompany you to showings
• Negotiate on your behalf
• Guide you through the inspection and closing process
• Recommend trusted lenders, inspectors, and other professionals

Step 4: Search for Homes in North Texas

Popular First-Time Buyer Areas in North Texas

Based on my experience working with first-time buyers, these areas offer great value and quality of life:

What to Look For During Showings

Step 5: Make an Offer

Once you've found your dream home, it's time to make an offer. The CFPB provides detailed guidance on comparing loan offers to ensure you're making the best financial decision.

Components of a Strong Offer

• Purchase Price: Based on comparable sales and market conditions
• Earnest Money: Typically 1-3% of purchase price, shows good faith
• Down Payment: Amount you're putting down (affects loan terms)
• Contingencies: Conditions that must be met (financing, inspection, appraisal)
• Closing Timeline: When you'll finalize the purchase (usually 30-45 days)
• Personal Letter: (Optional) Share your story with the seller

Step 6: Home Inspection and Appraisal

Home Inspection (Your Protection)

A professional home inspection typically costs $300-600 in North Texas and is one of the best investments you'll make. The inspector will examine:

• Structural components (foundation, framing, roof)
• Exterior (siding, grading, drainage)
• Roofing and attic
• Plumbing system
• Electrical system
• HVAC system
• Interior (walls, ceilings, floors, windows, doors)
• Insulation and ventilation

Home Appraisal (Lender's Requirement)

Your lender will order an appraisal (typically $400-600) to ensure the property is worth the amount you're borrowing. If the appraisal comes in low, you have options:

1. Negotiate a lower purchase price with the seller
2. Increase your down payment to cover the gap
3. Request a second appraisal (if you have evidence of errors)
4. Walk away from the deal (if you have an appraisal contingency)

Step 7: Secure Final Loan Approval

After your offer is accepted and inspections are complete, you'll work with your lender to finalize your mortgage. The CFPB's Loan Estimate explainer helps you understand what to expect.

Step 8: The Closing Process

The CFPB provides a comprehensive closing checklist and Closing Disclosure explainer to help you prepare.

3 Days Before Closing: Review Your Closing Disclosure

You'll receive your Closing Disclosure at least 3 business days before closing. This document details:

• Final loan terms and monthly payment
• Closing costs breakdown
• Cash needed to close
• Contact information for all parties

Compare it carefully to your Loan Estimate. If you notice significant changes, contact your lender immediately.

Closing Day: What to Bring

The closing typically takes 1-2 hours. You'll sign numerous documents, including:

• Promissory note (your promise to repay the loan)
• Deed of trust/mortgage (lien on the property)
• Closing disclosure (final loan terms)
• Deed (transfers ownership to you)

First-Time Home Buyer Programs in Texas

Texas offers several programs to help first-time buyers:

After You Close: First Steps as a Homeowner

1. Change the locks - You don't know who has keys from previous owners
2. Set up utilities - Transfer or establish electric, gas, water, internet, etc.
3. Update your address - USPS, DMV, banks, employer, subscriptions
4. Locate main shutoffs - Water, gas, electrical panel
5. Create a maintenance schedule - HVAC filters, gutters, lawn care
6. Build an emergency fund - Aim for 1-3% of home value annually for repairs
7. Keep closing documents safe - You'll need them for taxes and future sale

Common First-Time Buyer Mistakes to Avoid

Conclusion: You're Ready to Start Your Home Buying Journey

Buying your first home is a significant milestone, but with proper preparation and the right guidance, it can be an exciting and rewarding experience. The North Texas market offers excellent opportunities for first-time buyers, with diverse neighborhoods, strong job growth, and improving affordability as mortgage rates trend downward.

Remember these key takeaways:

• Start by improving your credit and saving for a down payment
• Get pre-approved before house hunting
• Work with an experienced local agent
• Don't skip the inspection
• Understand all your costs (not just the down payment)
• Take advantage of first-time buyer programs
• Stay patient and stick to your budget

Sources and Additional Resources