How to Buy a House in Texas: A Step-by-Step Guide for First-Time Buyers in Tarrant County

By Tyler KreisFirst-Timer Buyers January 24, 2026

A Young Couple's First Home

A few months ago, a young couple came to us feeling exactly how you might be feeling right now—excited about buying their first home, but overwhelmed by everything they didn't know. They'd been scrolling Zillow for months, reading conflicting advice online, and weren't sure where to actually start. We spent time understanding their situation, walked them through the real numbers, and helped them get positioned before they even looked at a single house. When the right home came along, they were ready. They spent just one day touring homes before finding the perfect fit—and closed without a hitch. As they put it: "We were tactical in our approach... we took his advice with how to approach the deal, and are so glad we did." That's what this guide is about: helping you get from "maybe someday" to confidently closing on your first home—without the stress of figuring it out alone.

Buying your first home in Tarrant County is one of the biggest financial decisions you'll ever make. And if you're feeling overwhelmed by the process, you're not alone. Between mortgage options, down payment assistance programs, Texas-specific rules, and a market that's constantly shifting, there's a lot to navigate. Here's the good news: the process is actually straightforward when someone explains it clearly. This guide will walk you through every step—from "I think I might want to buy a house" to picking up the keys. We'll cover what to do six months before you start looking, how the Texas home buying process works, what assistance programs are available in 2026, and the specific mistakes that trip up first-time buyers in the DFW market. Take your time with this. Bookmark it. Come back to it. There's no rush.

Key Takeaways

Start preparing 6-12 months before you want to buy. This gives you time to optimize your credit, save strategically, and get pre-approved—not just pre-qualified.
Texas has unique rules. The Option Period, earnest money structure, and new 2026 buyer representation requirements are different from other states.
Down payment assistance is real. Programs like Fort Worth HAP offer up to $25,000. Tarrant County's program offers up to $50,000. Most require a 620+ credit score.
Property taxes vary wildly. The difference between cities can be $300-400/month on the same priced home. MUD districts add even more.
The 2026 market has normalized. Homes are staying on market 38-42 days. You have time to think, inspect, and negotiate.
Common mistakes are avoidable. Not getting pre-approved, draining savings for the down payment, and skipping inspections are the biggest first-time buyer errors.

Step 1: Get Your Finances Ready (6-12 Months Before)

Before you start browsing Zillow or calling agents, you need to know where you stand financially. This isn't just about having a down payment—it's about building a foundation that will get you approved for a good loan and keep you comfortable after you buy.

Check and Improve Your Credit Score

Your credit score is the single biggest factor in what mortgage rate you'll qualify for. In the 2026 lending environment:

620-640 is the minimum for most Texas assistance programs and FHA loans
680+ gets you access to better conventional rates
740+ qualifies you for the best rates available

To improve your score before buying:

Pay down credit card balances to below 30% of your limit (below 10% is ideal)
Don't open any new credit accounts
Don't close old accounts (length of credit history matters)
Set up autopay to avoid any late payments
Check your credit report for errors and dispute any inaccuracies

Which Score Matters?

Mortgage lenders use your "middle FICO score"—they pull from all three bureaus (Equifax, Experian, TransUnion) and use the middle number. If you're buying with a partner, they use the lower of your two middle scores. Free credit monitoring apps are helpful but may show different scores than what lenders see.

Build Your Savings

In Tarrant County, you need to save for more than just the down payment. Here's what to target:

Savings Component	Purpose	Target Amount
Down Payment	Equity in the home	3% - 20% of purchase price
Closing Costs	Lender fees, title, prepaids	3% - 5% of purchase price
Due Diligence Fund	Inspection, option fee, appraisal	$1,500 - $3,000
Emergency Reserve	Post-purchase safety net	2-6 months of housing payment

Don't Drain Your Savings

One of the biggest mistakes first-time buyers make is putting every dollar toward the down payment and closing costs, leaving nothing for emergencies. The water heater doesn't care that you just spent all your money on closing costs—it will still break. Keep a reserve.

Step 2: Understand Your Real Budget

There's a difference between what a lender says you can afford and what you should actually spend. Lenders approve you based on debt-to-income ratios, but they don't know your lifestyle, your goals, or your comfort level.

The 28/36 Rule

Most financial guidance follows the 28/36 rule:

28% of your gross monthly income should be the maximum for housing costs (mortgage, taxes, insurance)
36% of your gross monthly income should be the maximum for all debt combined

Lenders will often approve you for more—FHA and VA loans allow debt-to-income ratios up to 43-45%. But just because you're approved doesn't mean it's comfortable.

Example: What Can a $85,000 Household Income Afford?

Gross Monthly Income: $7,083 28% Maximum Housing Payment: $1,983/month Estimated Home Price (at 6% rate): $280,000 - $320,000 With Texas property taxes factored in: Closer to $260,000 - $300,000

Texas property taxes are significantly higher than the national average. A home that might be affordable in another state could stretch your budget here. Always calculate with real local tax rates.

For a deeper dive into affordability with specific Tarrant County scenarios, see our guide: How Much House Can I Afford in Texas?

Step 3: Get Pre-Approved (Not Just Pre-Qualified)

There's an important distinction that many first-time buyers miss: Pre-qualification is a quick estimate based on self-reported information. It carries little weight with sellers. Pre-approval is a comprehensive review where the lender verifies your income, assets, and credit. It tells sellers you're a serious, qualified buyer. In competitive Tarrant County neighborhoods—Keller, Southlake, Roanoke—sellers increasingly demand "fully underwritten pre-approvals" before accepting offers. Getting pre-approved before you start looking puts you in a much stronger position.

What You'll Need for Pre-Approval

Last two years of W-2s (or tax returns if self-employed)
Last 30 days of pay stubs
Last 2-3 months of bank statements
Government-issued ID
Social Security number for credit check

Understanding Your Loan Options

Loan Type	Down Payment	Credit Minimum	Best For
Conventional	3% - 20%	620-680	Strong credit, want to avoid lifetime mortgage insurance
FHA	3.5%	580	Lower credit scores, smaller down payment
VA	0%	No minimum (lenders typically want 620+)	Veterans and active military
USDA	0%	640	Rural areas (some Tarrant County areas qualify)

January 2026 Mortgage Rates

As of late January 2026, 30-year fixed rates in Texas are averaging between 5.5% and 6.5%, depending on loan type and credit profile. This is significantly improved from the 7%+ rates of 2023-2024 but still higher than the historic lows of 2020-2021. Shop multiple lenders—rates can vary significantly.

Step 4: Build Your Home Buying Team

Buying a home involves multiple professionals working together. Choosing the right team makes the process smoother and protects your interests.

Your Buyer's Agent

A buyer's agent represents you—not the seller. They help you find homes, negotiate offers, coordinate inspections, and guide you through closing. Important 2026 Update: As of January 1, 2026, Texas law requires you to sign a written agreement with an agent before they can show you any property. This agreement must disclose exactly how the agent is compensated. This is different from how things worked in the past, so don't be surprised when an agent asks you to sign before touring homes. For help deciding whether you need an agent, see: Do You Need a Realtor to Buy a House in Roanoke, Texas?

Your Mortgage Lender

Choose a lender familiar with the Texas market. Out-of-state lenders sometimes struggle with Texas property tax calculations and closing requirements, leading to delays. Questions to ask:

What are your current rates and fees?
How long does your typical closing take?
Do you work with Texas down payment assistance programs?
Will you be available evenings/weekends if issues arise?

Your Home Inspector

The inspector is your technical advocate. In North Texas, prioritize inspectors who understand:

Foundation issues — The expansive clay soil in DFW causes significant foundation movement
Roof and hail damage — DFW is a prime hail zone
HVAC systems — Texas summers stress cooling systems

Your Title Company

In Texas, the title company acts as a neutral party handling the closing. They research the property's ownership history, ensure there are no liens or claims against it, and issue title insurance to protect you.

Step 5: Find the Right Home

Now the fun part—but also where many first-time buyers make mistakes. Before you start touring, get clear on what you actually need versus what would be nice to have.

Needs vs. Wants

Needs are non-negotiable: number of bedrooms, proximity to work, school district, accessibility requirements. Wants are preferences: updated kitchen, pool, specific style, big backyard. Be honest about this list before you start looking. It's easy to fall in love with a house that checks all the "want" boxes but misses critical "needs."

Research Neighborhoods

In Tarrant County, neighborhood research goes beyond "is this a nice area?" You need to understand: School districts: Even if you don't have kids, school district quality affects resale value. Northwest ISD, Keller ISD, and Carroll ISD (Southlake) are highly sought after. Tax rates: Two homes with identical prices can have vastly different monthly payments based on their tax districts.

City	Estimated Tax Rate	Annual Tax on $400K Home
Southlake	1.22% - 1.79%	$4,880 - $7,160
Keller	1.34% - 1.91%	$5,360 - $7,640
Fort Worth	1.53% - 2.45%	$6,120 - $9,800
Roanoke	1.55% - 2.38%	$6,200 - $9,520
Arlington	2.62% - 2.90%	$10,480 - $11,600

MUD/PID districts: Many newer Tarrant County communities are in Municipal Utility Districts (MUDs) or Public Improvement Districts (PIDs) that add additional taxes—sometimes 0.5% to 1.0% more. This can add $200-400 to your monthly payment on top of regular taxes.

The MUD Tax Surprise

We've seen buyers fall in love with a new construction home, only to discover at closing that the MUD taxes add $350/month to their payment. Always ask: "Is this property in a MUD or PID?" and get the exact tax rate before making an offer.

New Construction vs. Resale

New construction pros: Everything is new, builder warranties, energy efficiency, customization options. New construction cons: Often in MUD districts (higher taxes), builder contracts favor the builder, you're competing with the builder's sales rep (not a neutral party). Resale pros: Established neighborhoods, mature trees, known tax rates, often more negotiable. Resale cons: May need updates, older systems, potential for deferred maintenance.

Step 6: Make an Offer

When you find the right home, it's time to make an offer. In Texas, this is done using standardized TREC (Texas Real Estate Commission) contracts. Here's what goes into an offer:

Key Components of a Texas Offer

Sales Price: Based on comparable sales and current market conditions. In January 2026, Tarrant County homes are selling at about 98% of list price on average—meaning there's room to negotiate. Earnest Money: A good-faith deposit, typically 1-2% of the purchase price, held by the title company. This shows you're serious. If you back out for a reason not covered by your contingencies, the seller may keep this money. Option Fee and Option Period: This is uniquely Texan. You pay a small fee (typically $100-$500) directly to the seller in exchange for an "Option Period"—usually 5-10 days where you can terminate the contract for any reason and get your earnest money back. This is when inspections happen.

The Option Period Is Your Protection

During the Option Period, you can walk away for any reason—bad inspection, cold feet, whatever. You lose the option fee, but your earnest money is returned. After the Option Period ends, backing out becomes much more complicated and expensive. Use this time wisely.

Financing Contingency: Protects you if your loan falls through. Typically 14-21 days. Closing Date: Usually 30-45 days from contract execution for financed purchases.

Negotiation in the 2026 Market

The current Tarrant County market is balanced—neither strongly favoring buyers nor sellers. This means:

You have time to think (homes are averaging 38-42 days on market)
Inspections and contingencies are normal (no pressure to waive them)
Negotiation is expected (most homes sell below list price)
Sellers are often willing to offer closing cost credits

Step 7: Under Contract to Closing

Once your offer is accepted, the clock starts. Here's what happens during the typical 30-45 day closing period:

Days 1-3: Deliver Earnest Money and Option Fee

The option fee goes directly to the seller. Earnest money goes to the title company. Missing these deadlines can void your contract protections.

Days 1-10: Option Period (Inspections)

Schedule your general inspection immediately. You may also need specialty inspections: foundation, roof, pool, sewer scope. Review results and negotiate repairs or credits with the seller.

Days 7-14: Appraisal

Your lender orders an appraisal to verify the home's value supports the loan amount. If it comes in low, you'll need to renegotiate, pay the difference, or potentially walk away.

Days 14-21: Financing Contingency

Your loan moves through underwriting. Respond quickly to any lender requests for additional documentation.

Days 20-30: Title Work and Survey

The title company researches ownership history and identifies any issues. A surveyor verifies property boundaries.

Days 28-30: Final Walkthrough

24-48 hours before closing, you'll walk through the property to verify it's in the agreed-upon condition and any negotiated repairs are complete.

Day 30-45: Closing

Sign the final documents at the title company. Bring government ID and any required funds (cashier's check or wire transfer). After recording, you get the keys.

Don't Do These Things While Under Contract

Don't open new credit cards or loans. Don't make large purchases. Don't change jobs. Don't move money between accounts without documentation. Any of these can derail your loan approval at the last minute.

Step 8: Close and Move In

Closing day is mostly paperwork—lots of signing. The title company will walk you through each document. Once everything is signed and funded, the deed is recorded with the county and you officially own the home.

What to Bring to Closing

Government-issued photo ID
Cashier's check or wire confirmation for closing funds (the title company will give you the exact amount)
Any documents your lender requested

Immediate Post-Closing Tasks

First Week Checklist

Change all locks and garage door codes
Set up utilities (electricity, water, gas, internet)
Update your address (USPS, driver's license, voter registration)
Locate the main water shut-off valve
Locate the electrical panel
Change HVAC filters
Test smoke and carbon monoxide detectors

File for Your Homestead Exemption

This is critical in Texas. The Homestead Exemption:

Removes a portion of your home's value from property tax calculations
Caps annual assessed value increases at 10%—this is huge protection in a rising market
Provides protection from certain creditors

Filing: You can file as soon as you occupy the home. The deadline is April 30 for the current tax year. File with the Tarrant Appraisal District.

Don't Forget This Step

We've seen first-time buyers forget to file their homestead exemption and pay thousands more in taxes than necessary. Set a reminder to file within your first month of ownership.

Texas First-Time Homebuyer Assistance Programs (2026)

Texas has some of the best down payment assistance programs in the country. If you qualify, these can significantly reduce your out-of-pocket costs.

Fort Worth Homebuyer Assistance Program (HAP)

Up to $25,000 in down payment and closing cost assistance for buyers within Fort Worth city limits.

Income Limit: At or below 80% of Area Median Income Property Limits: Existing homes up to $309,000; new construction up to $329,000 Asset Limit: Liquid assets cannot exceed $25,000 Repayment: Forgiven over 5-10 year affordability period Credit Requirement: Typically 620+

Tarrant County Homebuyer Assistance Program

Up to $50,000 in assistance for buyers in Tarrant County (outside Fort Worth, Arlington, Grand Prairie).

Funding Source: HUD HOME Investment Partnerships Program Affordability Period: 10-20 years Note: Longer commitment but significantly higher assistance amount

TSAHC (Texas State Affordable Housing Corporation)

State-level programs including "Homes for Texas Heroes" (teachers, police, firefighters, veterans) and "Home Sweet Texas Home Loan Program."

Assistance: Down payment assistance as a grant or forgivable second lien Credit Requirement: Typically 620+ Includes: Below-market interest rates

TDHCA - My First Texas Home

30-year fixed-rate mortgages with down payment assistance up to 5% of the loan amount.

Can be paired with: Mortgage Credit Certificate (MCC) for up to $2,000 annual federal tax credit Credit Requirement: 620+ Income Limits: Vary by county and household size

Can You Combine Programs?

Yes, in many cases you can stack multiple assistance programs. For example, you might combine a TDHCA mortgage with their MCC tax credit. Your lender should be familiar with how to structure this—ask specifically about combining programs when you're getting pre-approved.

Common First-Time Buyer Mistakes (And How to Avoid Them)

After helping many first-time buyers in Tarrant County, we see the same mistakes repeatedly. Here's what to avoid:

Mistake #1: Not Getting Pre-Approved First

Touring homes before you know what you can afford wastes time and leads to disappointment. Get pre-approved before you start looking.

Mistake #2: Draining Your Savings for the Down Payment

Putting every dollar toward closing leaves you vulnerable. Unexpected repairs, appliance failures, and emergencies don't wait. Keep a reserve.

Mistake #3: Making Big Purchases Before Closing

That new car or furniture set can wait. New debt or large purchases while under contract can kill your loan approval. Don't do anything financially significant until after you have the keys.

Mistake #4: Waiving Inspections

In North Texas, foundation issues and hail damage are common and expensive. Skipping inspections to make your offer more competitive can cost you tens of thousands later.

Mistake #5: Ignoring Property Tax Variations

Two identical houses priced the same can have dramatically different monthly payments based on their tax districts. Always calculate with real tax rates.

Mistake #6: Falling in Love Too Fast

Emotional attachment clouds judgment. It's okay to love a house, but make decisions based on data—comps, inspection results, and real costs—not feelings.

Mistake #7: Forgetting to File Homestead Exemption

This costs you money every single year you don't file. Set a reminder to file within your first month of ownership.

Tarrant County Market Data: January 2026

Understanding current market conditions helps you make informed decisions about timing, pricing, and negotiation.

$333K Median Price (County)

38-42 Days on Market

98.2% Sale-to-List Ratio

3.8-4.0 Months of Inventory

Prices by City (January 2026)

City	Median Price	Days on Market	Market Conditions
Southlake	$1,320,000	52	Luxury hub, competitive
Keller	$629,000	28	Fast-moving, top schools
Roanoke	$585,000	124	Balanced, high growth area
Grapevine	$567,500	61	Historic charm, moderate pace
Fort Worth	$340,500	42	Urban core, still competitive
Arlington	$334,000	66	Most buyer-friendly, balanced

What This Means for Buyers

The market has normalized. The frantic bidding wars of 2021-2022 are over. Homes are sitting longer, giving you time to make thoughtful decisions. Negotiation is working. With a 98.2% sale-to-list ratio, buyers are successfully negotiating below asking price on average. Inspections are back. In a balanced market, sellers expect inspections and reasonable repair requests. Don't skip them. 2026 forecast: Economists project 2-4% price increases in Tarrant County as interest rates stabilize and demand remains strong from continued DFW job growth.

Frequently Asked Questions

How much do I need for a down payment in Texas?

It depends on your loan type. VA and USDA loans offer 0% down. FHA requires 3.5%. Conventional loans can go as low as 3%. Plus, down payment assistance programs can cover some or all of this. You don't necessarily need 20% down—that's a common misconception.

What credit score do I need to buy a house?

For most Texas assistance programs and FHA loans, you need at least 620. Conventional loans typically want 620-680+. The higher your score, the better your interest rate. If you're below 620, focus on credit improvement for 6-12 months before applying.

How long does it take to buy a house in Texas?

From offer acceptance to closing, typically 30-45 days. But you should start preparing 6-12 months before you want to buy (credit optimization, saving, getting pre-approved). The active search phase varies—some buyers find the right home in days, others take months.

What is the Option Period in Texas?

A unique Texas protection that gives buyers 5-10 days to terminate the contract for any reason in exchange for a small fee ($100-$500). This is when inspections happen. If you back out during this period, you lose the option fee but get your earnest money back.

Do I need a Realtor to buy a house in Texas?

Legally, no. Practically, for most first-time buyers, yes. The Texas process has unique elements (Option Period, MUD disclosures, TREC contracts) that are easy to mishandle. For a detailed breakdown, see our guide: Do You Need a Realtor to Buy a House in Roanoke, Texas?

What are closing costs in Texas?

Typically 3-5% of the purchase price. This includes lender fees, title insurance, appraisal, survey, prepaid taxes, and insurance. On a $350,000 home, expect $10,500-$17,500 in closing costs. Sellers can contribute toward these in negotiations.

What is a homestead exemption and why does it matter?

The homestead exemption reduces your property tax burden and caps annual assessed value increases at 10%. In a rising market, this protection is significant. File with the Tarrant Appraisal District within your first year of ownership—the deadline is April 30.

What are MUDs and PIDs?

Municipal Utility Districts (MUDs) and Public Improvement Districts (PIDs) are special taxing districts common in newer Tarrant County developments. They fund infrastructure and amenities but add to your tax bill—sometimes significantly. Always ask if a property is in a MUD or PID before making an offer.

Ready to Start Your Home Buying Journey?

Whether you're six months out or ready to start looking now, we're here to help you navigate the process at your pace. No pressure, no rush—just clear guidance and honest answers to your questions. Schedule a Conversation Try Our Mortgage Calculator

The Bottom Line

Buying your first home in Tarrant County doesn't have to be overwhelming. Yes, there's a lot to learn—credit scores, loan types, assistance programs, Texas-specific rules, tax variations, inspection strategies, and negotiation tactics. But when you break it down step by step, each piece is manageable. The key is preparation. Start 6-12 months before you want to buy. Get your credit in shape. Understand your real budget (not just what a lender will approve). Get pre-approved before you start looking. Build a team of professionals who know the local market. And when you find the right home, you'll be ready to move confidently. The young couple from the beginning of this guide? They did exactly this. They took time to prepare, got clear on their budget, and when the right opportunity came along, they were ready. One day of looking. Clean close. Keys in hand. That can be you, too.

"If all of this feels like a lot, that's okay. It is a lot—but you don't have to figure it out alone. Take it one step at a time. Bookmark this guide and come back to it as you move through the process. And when you're ready to talk, we're here."