Consumer Education · Texas Real Estate
First-Time Home
Buyer Guide
Prepared by Hayden Eastwood, Real Estate Agent
Read The Educational Disclaimer
Educational only — not legal, tax, lending, inspection, appraisal, or title advice. This guide explains common Texas home-buying steps and TREC contract concepts in plain language; your signed documents and addenda control. Consult an attorney, lender, inspector, appraiser, title company, CPA, or insurance professional where appropriate.
Topics
Broken down into easy sections so you can open exactly what you need, one topic at a time.
Before You Shop
Under Contract
Closing And Move-In
1 · Welcome
Buying your first home in Texas can feel exciting, confusing, and high-stakes all at once. My role is to guide process, timelines, and negotiation strategy so you can make informed decisions.
This guide is designed to answer the questions most first-time buyers have before they even know what to ask.
Learn More About Hayden →Why Many Buyers Choose Ownership
Equity
Part of each monthly payment can reduce principal, which helps build ownership over time instead of paying rent with no ownership stake.
Appreciation
Homes do not move in a straight line, but long-term ownership has historically created value growth for many buyers.
Roots
Ownership can create neighborhood stability, school continuity, and more control over how you live in the property.
Tax Strategy
There can be tax benefits depending on your situation. Always confirm those with your CPA instead of assuming them.
Personal Control
You decide how the space looks, functions, and evolves, subject to HOA, permit, and city restrictions where applicable.
Who Is Involved in a Purchase?
Buyer’s Agent
Guides search, pricing, negotiation, contract flow, and coordination from offer to closing.
Listing Agent
Represents the seller and markets the property while negotiating on the seller’s behalf.
Lender
Qualifies the buyer, structures the loan, orders appraisal, and drives underwriting to closing.
Title Company
Handles escrow, title review, documents, settlement accounting, and closing logistics.
Inspector
Provides a professional opinion of observed condition on the inspection date.
Appraiser
Provides the lender with an opinion of market value for lending risk purposes.
Get Pre-Approved Early
Pre-approval helps set your budget, strengthens your offer, and catches issues before deadlines matter.
- Clarifies a realistic price range and payment comfort zone.
- Strengthens your offer in a competitive situation.
- Surfaces debt or credit issues before contract deadlines matter.
Pre-approval is not final underwriting approval — rates and terms are never guaranteed.
Open Financing & Pre-Approval Guide →Monthly Payment Formula
Most monthly housing payments include more than principal and interest, so it helps to view the full picture early.
A Simple 10-Step Buying Roadmap
Talk with your real estate agent and lender
Get pre-approved
Build your down payment and cash-to-close plan
Understand your credit and debt picture
Tour and compare homes
Write and negotiate an offer
Inspect the property
Move through appraisal and underwriting
Review closing numbers and insurance
Close, fund, and get keys
Cash Needed to Buy in Texas
Buying cash needs usually show up in three stages: before closing, at closing, and right after you move in.
Before Closing
- Earnest money
- Option fee
- Inspection fees
- Appraisal fee
- Lender application / processing items (if applicable)
At Closing
- Down payment
- Lender closing costs
- Prepaid taxes / insurance / escrow items
- Title-related fees
- Survey-related and HOA transfer / resale costs (if applicable)
After Closing
- Moving costs
- Utility deposits
- Immediate repairs
- Furnishing, appliances, blinds, locks, and misc.
Earnest Money
Earnest money is a good-faith deposit held by title or escrow after the contract is signed.
If the deal closes, it is usually credited back to the buyer. If protections expire and the buyer defaults, it may be at risk.
Earnest money ≠ option fee
Option Fee & Option Period
The option period is a short post-contract window where the buyer can terminate freely, and the option fee pays for that right.
Earnest Money
- Usually larger amount
- Held in escrow
- Potentially refundable with proper termination rights
- Usually credited at closing
Option Fee
- Usually smaller amount
- Typically paid to seller
- Usually nonrefundable
- Typically credited at closing if buyer proceeds
Texas Resale Contract in Plain English
Most Texas resale deals use the standard TREC contract, which lays out the price, timelines, protections, and responsibilities for both sides.
Title, Commitment & Survey
Title work and the survey help confirm ownership, boundary issues, easements, and other items that can affect the property.
- Title company often handles escrow, title review, and closing administration.
- Title commitment may show liens, easements, restrictions, ownership issues, and HOA items.
- Survey shows boundaries and improvements — encroachments or changes matter.
- Complex title or boundary issues may require attorney-level guidance.
Inspections
An inspection gives a professional snapshot of the home’s visible condition, but it is not a warranty or guarantee.
Common Follow-Ups
Repair Negotiations
Sellers are not required to fix every issue, so repair requests usually focus on major defects, safety concerns, and lender or insurance problems.
Appraisal & Financing
The lender orders the appraisal to support the loan, and a low value can lead to renegotiation, a buyer-paid gap, or termination rights depending on the contract.
During Underwriting
- Do not open new credit lines.
- Do not finance furniture or large purchases without lender guidance.
- Do not change jobs or move large funds casually.
Lender File Checklist
Having your income, asset, employment, and debt documents ready helps underwriting move faster and with fewer surprises.
Bring These First
Your lender may ask for more, but these are the usual first requests.
How to Protect Your Approval
Avoid These While Under Contract
- Do not change jobs without lender guidance.
- Do not buy a car or finance furniture before closing.
- Do not open new credit cards or miss payments.
- Keep down payment and closing funds seasoned and traceable.
- Do not leave debts, liabilities, or ownership interests off the application.
HOA, Taxes & Insurance
HOA rules, property taxes, and insurance costs can all change affordability, so they should be reviewed before you get too far into a deal.
HOA
Review dues, restrictions, approvals, transfer fees, and resale documents before you get too far into a deal.
Taxes
Texas property taxes can materially change affordability and may shift over time, so early estimates matter.
Insurance
Insurance cost and availability can change a monthly payment quickly, especially in higher-risk areas.
Refundability at a Glance
Earnest money
Timing: After execution
Refundable: Often only under valid termination rights
Option fee
Timing: At/after execution
Refundable: Usually nonrefundable
Inspection fees
Timing: During option period
Refundable: Usually nonrefundable once performed
Appraisal fee
Timing: During financing
Refundable: Usually nonrefundable once ordered
19 · Common First-Time Buyer Mistakes
Most first-time buyer mistakes come from rushing, misunderstanding cash needs, or making changes during escrow.
Buyer Wishlist & Resale Scorecard
A strong wishlist separates true needs from preferences and keeps resale value in mind while you shop.
Must-Haves
- Target areas or school boundaries
- Minimum bed / bath count
- Commute tolerance and flood-zone rules
- Monthly payment ceiling
- Monthly payment goal
Nice-To-Haves
- Style preference: modern, traditional, farmhouse, etc.
- One-story vs. two-story
- Specific lot features, views, or cul-de-sac
- Neighborhood amenities and walkability
Resale Guardrails
- 3+ bedrooms tends to be more flexible for resale
- 2+ baths and a true primary bath help marketability
- Garage and useful storage matter more than buyers think
- Kitchen, bath, and layout quality usually carry more value than flashy upgrades
Use It Like This
When we tour homes, each one should be graded against your must-haves, your stretch preferences, and its resale fundamentals. That keeps excitement from overriding discipline.
Closing, Funding & Possession
Signing is not always the finish line; in many Texas deals, the transaction is not complete until funding.
Final Walkthrough
The final walkthrough checks that the home is in the expected condition and that agreed items or repairs are in place.
Closing Day Checklist
- Confirm closing appointment time with title in advance.
- Bring valid photo ID for all required signers.
- Wire or cashier’s check closing funds exactly as instructed by title.
- Review your Closing Disclosure or settlement statement before signing day.
- Order homeowner’s insurance early and send proof to the lender.
Buyer Usually Pays
- Buyer-agent compensation if agreed
- New loan charges and prepaid interest
- Half of escrow / settlement fee
- Inspection fees
- Lender’s title policy
- Homeowner’s insurance premium
- Recording charges for buyer documents
- Tax prorations from date of acquisition
Seller Usually Pays
- Seller-side compensation if agreed
- Owner’s title policy
- Existing loan payoff and accrued interest
- Half of escrow / settlement fee
- Tax liens, judgments, HOA dues, and related seller obligations
- Home warranty if negotiated
- Recording charges clearing seller documents
- Applicable tax prorations and assessments
Closing Day Checklist
- Confirm closing appointment time with title in advance.
- Bring valid photo ID for all required signers.
- Wire or cashier’s check closing funds exactly as instructed by title.
- Review your Closing Disclosure or settlement statement before signing day.
- Order homeowner’s insurance early and send proof to the lender.
Typical Buyer vs Seller Cost Split
Exact allocations are negotiated, but your brokerage guide gives a helpful expectation for who usually covers which side of the settlement.
Buyer Usually Pays
- Buyer-agent compensation if agreed
- New loan charges and prepaid interest
- Half of escrow / settlement fee
- Inspection fees
- Lender’s title policy
- Homeowner’s insurance premium
- Recording charges for buyer documents
- Tax prorations from date of acquisition
Seller Usually Pays
- Seller-side compensation if agreed
- Owner’s title policy
- Existing loan payoff and accrued interest
- Half of escrow / settlement fee
- Tax liens, judgments, HOA dues, and related seller obligations
- Home warranty if negotiated
- Recording charges clearing seller documents
- Applicable tax prorations and assessments
24 · What I Do as Your Real Estate Agent
- Education and process guidance
- Search and offer strategy
- Contract coordination and deadline management
- Negotiation and communication with lender/title/parties
- Plain-language explanation of common forms
What I Do Not Provide
- Legal advice
- Tax advice
- Engineering or inspection opinions
- Guaranteed future value predictions
- Demographic steering
Common Terms from the Buyer Packet
Appraisal
A value opinion used mainly for lending risk and pricing decisions.
Comparable Sales
Recent similar property sales used to estimate value.
Deed of Trust
The security instrument tied to many Texas home loans.
Close of Escrow
The point where the transaction is fully completed and title transfers.
Amendment
A signed change to contract terms after execution.
Assumption
Taking over an existing loan under allowed terms.