Buying your first home is an exciting milestone, but the process can feel overwhelming when you are unsure where to begin. From checking your credit and setting a realistic budget to choosing the right location and preparing for closing costs, planning ahead can help make the home-buying experience easier.
This first time home buyer tips and checklist cover the most important steps to take before buying your first home in Texas. Whether you are considering a new construction home or an existing home, these tips can help you prepare financially, understand what to expect and feel more confident during your search.
Every year, thousands of buyers purchase their first home in master-planned communities like Santa Rita Ranch. While every buyer’s situation is unique, the preparation steps are largely the same whether you’re purchasing new construction or an existing home. Our first time home buyer tips and checklist will have you prepared and pocketing the keys to your new home in no time.
At a Glance: First Time Home Buyer Tips & Checklist
- Check your credit score
- Create a realistic monthly budget
- Save for your down payment and closing costs
- Get pre-approved for a mortgage
- Decide where you want to live
- Compare builders and floor plans
- Work with an experienced Realtor
- Tour homes
- Make an offer
- Close and move in
Get Your Finances in Order Before Buying Your First Home in Texas
Whether you’re buying your first home in Texas or in another state—but why would you?—your credit score is one of the primary factors that can affect your mortgage approval and interest rate.
If you don’t already have a budget, create one and determine how much home you can afford. Ideally, lenders want your mortgage payment to be about 28 percent of your monthly gross income, with total debt payments at or below 40 percent — and ideally 36 percent — of your gross income.
Finally, you’ll want to get a pre-approval letter, which tells the seller you are serious about buying a home and eases the process later on. Assemble these documents if planning to get mortgage pre-approval:
- Two years of tax returns
- Recent bank statements
- List of your monthly debt payments (car loans, credit cards, etc.)
- Pay stubs or proof of income
- Rental payment history (if applicable)
- Gift letter explaining down payment assistance (if applicable)
Time to Go Home Shopping – Almost
You are ready to start shopping for a home, but before touring models online or visiting in person, you have a little bit more work to do.
Decide where you want to live.
Do you want to live close to work? Is a school district important? It may not be right now, but if you’re planning on having children and staying in your home a while, you’ll want highly rated schools. Even if you’re not planning on children, being located within a sought-after school district will help resale. Especially popular are communities with on-site schools, like Santa Rita Ranch, which has seven on-site schools, including schools within Liberty Hill and Georgetown school districts, Kids ‘R’ Kids Daycare, and Divine Savior Academy private school.
Once you know where you want to live, it’s time to start researching builders and seeing what type of floor plans they offer. Large master-planned communities like Santa Rita Ranch have numerous builders — we have 12 — that will offer a greater variety of floor plans. First-time buyers will have more to choose from in larger communities. Make sure to have a general idea of what you want in a home to help you narrow your search.
Hire a Real Estate Agent
The person who can best explain what to know when buying your first home is a real estate agent. A knowledgeable Realtor can help you navigate the home-buying process and provide helpful information about area schools, nearby shopping and restaurants, builders, contracts and comparable home sales.
Avoid the Biggest First-Time Buyer Mistake
Our first time home buyer tips and checklist would be incomplete without discussing closing costs and other home-buying expenses. You’ve done most of the work—determined how much home you can afford, saved for your down payment, picked your community and found the perfect home. There is just one more thing to consider: Do you have enough money for closing costs?
Another expense that many first-time homebuyers forget is move-in expenses. You might need money for appliances, new furniture, an outdoor grill (especially if you’ve been living in an apartment), and other items. Think about how much you might need and start saving.
You’re Prepared — Now Enjoy!
Buying a home—especially your first home—can be a daunting experience. By following this first time home buyer tips and checklist, preparing your finances, researching communities, and working with experienced professionals, you will be ready to make a confident decision.
If you are buying your first home in Texas and considering the Austin area, Santa Rita Ranch offers a variety of homes, builders, amenities, and schools that make it an excellent place to begin your homeownership journey.
Frequently Asked Questions About Buying Your First Home in Texas
Do first-time home buyers need a 20 percent down payment?
No. While putting 20 percent down can help you avoid private mortgage insurance (PMI), many loan programs allow qualified buyers to purchase a home with much less. Some conventional loans require as little as 3 percent down, while FHA loans may require 3.5 percent. Talk with a lender to determine which loan program best fits your financial situation.
How much are closing costs when buying a home in Texas?
Closing costs typically range from 2 to 5 percent of the home’s purchase price and may include lender fees, title insurance, appraisal fees, and prepaid taxes and insurance. Many new-home builders also offer incentives that can help reduce these costs, making a new home more affordable for first-time buyers.
What credit score do I need to buy my first home?
Minimum credit score requirements vary by lender and loan type. In general, a higher credit score can improve your chances of approval and help you qualify for a lower interest rate. Before applying for a mortgage, review your credit report for errors and pay down existing debt whenever possible.
Is it better to buy a new construction home or an existing home?
It depends on your priorities. New construction homes often feature modern floor plans, energy-efficient designs, builder warranties, and fewer immediate maintenance needs. Existing homes may offer more established neighborhoods and mature landscaping. Many first-time buyers appreciate the predictability and customization options available with a new home.
Why should I use a Realtor when buying a new home?
A Realtor can help you compare communities, understand contracts, negotiate terms, and guide you through the home-buying process from start to finish. They can also explain differences between builders, neighborhoods, school districts, and resale values, helping you make a more informed decision.
Is a master-planned community a good choice for first-time buyers?
For many buyers, yes. Master-planned communities often offer a wide range of home sizes and price points, along with amenities such as parks, pools, trails, and community events. Communities with multiple builders, like Santa Rita Ranch, also provide more floor plans and options, making it easier to find a home that fits your lifestyle and budget.
How long does it take to buy your first home?
The timeline varies depending on whether you’re purchasing an inventory home or a home being built from the ground up. Buying an existing or move-in ready home may take 30 to 60 days from contract to closing. Building a new home typically takes several months, depending on the builder, floor plan, and construction schedule.
What should first-time home buyers avoid?
One of the biggest mistakes is shopping for homes before getting pre-approved for a mortgage. Buyers should also avoid making large purchases, opening new lines of credit, or changing jobs while their loan is being processed. Finally, be sure to budget for closing costs, moving expenses, and ongoing homeownership costs—not just the monthly mortgage payment.
