A mortgage broker typically has access to multiple lenders and can help you compare several grant and down payment assistance programs at once. Your bank will only offer whatever products they carry in-house. Many Texas buyers find that brokers open up more options, especially when you’re looking at programs like TDHCA’s My First Texas Home or TSAHC’s Home Sweet Texas. It’s worth getting quotes from both — rate differences between lenders can be significant, sometimes up to half a percentage point for the same loan scenario.

It depends on the loan type. Conventional loans can go as low as 3% down with a credit score of 620 or higher. FHA loans require just 3.5% down with a score of 580 or above. VA and USDA loans may allow zero down payment for eligible buyers. On a median-priced Texas home around $340,000, that means you could potentially get in for roughly $10,000 to $12,000 with an FHA loan — far less than the $68,000 a traditional 20% down payment would require. Texas also has multiple down payment assistance programs that can reduce your out-of-pocket costs further.

Minimum requirements vary by loan type. Conventional loans generally require a 620 or higher score. FHA loans may accept scores as low as 580 with a 3.5% down payment. VA loans typically call for around 620. Some portfolio lenders may work with scores starting at 580. Keep in mind that the higher your score, the better your interest rate and overall terms will be. If your score is borderline, it may be worth spending a few months paying down balances and ensuring all payments are made on time before applying.

Texas has no state income tax, but property taxes are higher than the national average to make up the difference. The average effective rate falls between 1.44% and 1.8% of the assessed value, depending on the county. On a $340,000 home, that can mean $5,000 to $6,000 or more per year, added to your monthly mortgage payment through escrow. This is one of the biggest surprises for first-time buyers in Texas. Always factor property taxes into your affordability math — and don’t forget to file for a Homestead Exemption once you close, which can reduce your home’s taxable value by up to $100,000.

Buyer closing costs in Texas typically run 2% to 5% of the purchase price. On a $340,000 home, expect roughly $6,800 to $17,000. These include lender fees, title insurance, appraisal, survey, prepaid property taxes, and homeowner’s insurance. One piece of good news: Texas does not charge a real estate transfer tax, which saves you compared to many other states. Closing costs are negotiable — many buyers successfully ask the seller to contribute toward these expenses, and your real estate agent can help structure this request in your offer.

Yes, and they’re more robust than many buyers realize. The TDHCA offers the My First Texas Home program with up to 5% of the loan amount for down payment and closing costs. The TSAHC runs the Home Sweet Texas program with similar benefits, including grant options that don’t need to be repaid. At the city level, Houston offers up to $50,000 in forgivable assistance, Dallas has its DHAP program capped at $50,000, and San Antonio provides between $1,000 and $30,000 through its HIP 80 program. Be aware that many of these programs have income limits and may require completing a homebuyer education course.

Pre-approval is far more valuable. Pre-qualification is an informal estimate based on information you provide verbally — it doesn’t carry much weight. Pre-approval means a lender has actually reviewed your credit, income, and assets and issued a conditional commitment. In competitive Texas metro markets like Dallas and Houston, a pre-approval letter signals to sellers that you’re a serious, financially vetted buyer. It also gives you a firm budget so you aren’t guessing at what you can afford. Get pre-approved before you start touring homes.

As of 2025–2026, markets across Texas have cooled meaningfully from pandemic-era peaks. Prices have softened in Austin and inventory has improved across the DFW metroplex, giving buyers more room to negotiate. However, mortgage rates remain elevated in the 6% to 7% range, so monthly payments are still significant. A common perspective among experienced buyers and mortgage professionals: if you find a home you can afford at today’s rates, buy now and refinance later if rates drop — you can always change the rate, but you can’t go back in time to buy at a lower price.

A few things catch Texas buyers off guard. If the home was built before the 1990s, a 4-Point Inspection may be required for homeowner’s insurance eligibility. Mature trees on the property can be a hidden expense — diseased or problematic trees require an arborist and removal can be costly. Flood risk is a real concern in Central and North Texas, and standard homeowner’s policies do not cover flood damage, so separate flood insurance is strongly recommended in many areas. Seasoned buyers also suggest asking for credit at closing rather than demanding the seller make repairs, since this lets you choose your own contractors and keeps the timeline on track.

The most commonly cited mistakes: not shopping around aggressively for mortgage rates (even a small rate difference can cost hundreds per month over the life of the loan), focusing only on the sticker price while ignoring taxes, insurance, and HOA fees that inflate the true monthly cost, rushing the process without understanding each step from offer to closing, and not taking advantage of the state-specific assistance programs that could save thousands in upfront costs. The two things that consistently save buyers the most money are comparing at least two to three lender quotes and fully calculating your total monthly housing obligation before making an offer.