Step-by-Step: How to Buy Your First Home in Texas (From Pre-Qualification to Closing Day)

We're going to walk you through the entire process, step by step, in plain language. By the time you finish reading, you'll know exactly what to expect and in what order, from the very first phone call to the moment someone hands you your keys.

Before You Start: The Two Things Worth Knowing

One: The process is more manageable than it looks. Most first-time buyers tell us after closing that they wish they'd started sooner, it wasn't nearly as complicated as they expected.

Two: You don't have to figure any of this out alone. That's exactly what a loan officer is for. Our job is to guide you through every step, explain every document, and advocate for you throughout the process.

Now, let's walk through it.

Step 1: Check Your Credit Report

Timeline: Do this first, before anything else

Before you talk to a lender, pull your free credit reports from all three bureaus: Equifax, Experian, and TransUnion. You can do this for free at annualcreditreport.com.

Look for:

• Any errors or accounts that don't belong to you (disputing these can move your score)

• Late payments or collections that may need to be addressed

• Your approximate credit score range

You don't need a perfect score to buy a home. FHA loans accept scores as low as 580, and most Texas assistance programs require 620 or higher. But knowing where you stand helps you understand what loan options are available and whether there's any quick groundwork worth doing before you apply.

Don't open any new credit accounts, make large purchases on credit, or close old accounts during the homebuying process. Any of these can affect your score and your loan.

Step 2: Get a Clear Picture of Your Finances

Timeline: Same time as Step 1

Before you can figure out what home you can afford, you need to understand where you stand financially. This means looking honestly at the following:

Income: What is your gross (pre-tax) monthly income? If you're self-employed, lenders average your last two years of net income from tax returns.

Debt: What are your current monthly debt obligations? This includes car payments, student loans, minimum credit card payments, and any other recurring debt. Lenders will calculate your debt-to-income ratio (DTI), the percentage of your gross income going toward debt payments. Most programs look for a DTI below 43–50%.

Savings: What do you have in checking, savings, or investment accounts? This affects your down payment options and how much you can bring to closing.

Employment: Have you been at your current job for at least two years? Lenders prefer stable employment history. Recent job changes aren't disqualifying, but they may require additional documentation.

Step 3: Connect With a Loan Officer (Before You Look at Homes)

Timeline: As early as possible, even 12 months before you plan to buy

This is the step most first-time buyers skip, and it costs them time and stress later.

Before you browse Zillow, before you visit an open house, before you call a real estate agent: talk to a loan officer. Here's why.

A loan officer will:

• Tell you exactly what you qualify for based on your real numbers

• Identify every state, city, and federal assistance program available to you

• Flag anything that could slow you down (a debt to pay off, a credit issue to resolve)

• Give you a realistic price range so you shop with confidence, not hope

At TLP Mortgage, this first conversation is free, no commitment, no pressure. We're here to give you information and to earn your trust, not your signature.

Step 4: Get Pre-Qualified (Then Pre-Approved)

Timeline: 1–2 weeks before you're ready to shop

These two terms get confused a lot. Here's the difference:

Pre-qualification is an initial assessment based on information you provide, income, debts, assets, and credit range. It gives you a general idea of what you might qualify for. It's quick (sometimes same-day) and doesn't require documentation.

Pre-approval is a verified version. You submit full documentation (see the list below), and the lender actually reviews and verifies your financial situation. A pre-approval letter tells sellers you're a serious, qualified buyer. In a competitive market, this is essential.

Documents you'll need for pre-approval:

• Last two years of W-2s (or 1099s/tax returns if self-employed)

• Last 30 days of pay stubs

• Last two months of bank statements (all accounts)

• Last two years of federal tax returns

• Government-issued photo ID

• Social Security number

Gather these in advance. Buyers who have their documents ready move through pre-approval in 1–3 business days.

Step 5: Understand Your Loan Options and Assistance Programs

Timeline: During or immediately after Step 4

Once your loan officer reviews your file, they'll walk you through the loan programs available to you. This includes:

Loan types (FHA, Conventional, VA, USDA) — each has different down payment requirements, credit score minimums, and mortgage insurance structures.

Texas assistance programs — TSAHC, TDHCA, My First Texas Home, My Choice Texas Home, city-specific programs. Depending on your income and the home you purchase, you may qualify for grants or forgivable loans that cover your down payment and closing costs.

Mortgage Credit Certificate (MCC) — a tax credit that can save first-time buyers thousands of dollars annually. Ask your loan officer if you qualify.

Don't leave this conversation until you understand exactly which programs you're applying through and why. A good loan officer will explain the tradeoffs clearly.

Step 6: Find a Real Estate Agent

Timeline: Once you have your pre-approval letter

Now you're ready to start working with a real estate agent. Your pre-approval letter tells your agent — and any sellers you make an offer to — that you're a qualified buyer, not just a curious browser.

Look for an agent who:

• Has experience with first-time buyers

• Knows your target neighborhoods well

• Communicates promptly and clearly

• Has experience with the loan programs you're using (some agents are unfamiliar with DPA programs, which can create friction)

Ask your TLP loan officer to connect you with one of their trusted real estate agent partners in your area. Lenders and agents who work together regularly tend to make the process significantly smoother.

Step 7: Shop for Your Home

Timeline: Days to months, depending on market and preferences

With your pre-approval in hand and your agent by your side, you're ready to look at homes. Keep a few things in mind:

Stick to your approved budget. It's easy to fall in love with a home that's $30,000 over your comfortable range. Stay disciplined. Your loan officer approved a number, trust it.

Think about resale, not just today. Even if this is your "forever home," life changes. Location, school districts, neighborhood trajectory, and layout all affect future value.

Don't make major financial moves during this period. No new credit cards, no large purchases, no switching jobs if you can help it. Any of these can affect your loan approval.

Communicate with your loan officer throughout. If you find a home you love, loop us in early. We can flag any property-specific issues (condo associations, manufactured homes, etc.) before you fall too far in love.

Step 8: Make an Offer

Timeline: When you find the right home

Your real estate agent will guide you through crafting a competitive offer. The offer includes:

• Purchase price

• Earnest money deposit (typically 1–2% of the purchase price, applied to your down payment at closing)

• Requested seller concessions (if any, such as asking the seller to contribute to your closing costs)

• Contingencies (inspection, financing, appraisal)

• Proposed closing timeline

If the seller counters, your agent negotiates on your behalf. Once both parties sign, you have an executed contract, and the clock starts.

Step 9: Home Inspection and Appraisal

Timeline: First 7–14 days after contract execution

Home inspection: Hire a licensed home inspector, this is your expense, typically $300–$500, paid before closing. The inspector evaluates the home's condition: roof, foundation, plumbing, electrical, HVAC, and more. Review the report carefully with your agent. If significant issues are found, you may negotiate repairs or credits with the seller, or in some cases, walk away.

Appraisal: Your lender will order a licensed appraisal to confirm the home's market value. If the home appraises below the purchase price, you'll need to renegotiate with the seller or cover the difference. If it appraises at or above the purchase price, you're in good shape.

These two steps protect you, don't skip either one.

Step 10: Underwriting

Timeline: 1–3 weeks after submitting your full loan package

After your offer is accepted and your documents are submitted, your file goes to an underwriter. The underwriter is the person (or team) at the lending institution who formally reviews your application and makes the final approval decision.

During underwriting, you may receive requests for additional documentation, called "conditions." These are normal and not a cause for panic. Common conditions include:

• A letter explaining a large deposit in your bank account

• Additional pay stubs or bank statements

• Documentation of a gift from a family member used for your down payment

• Clarification on a credit inquiry or account

Respond to these requests promptly. Delays in underwriting are almost always caused by slow document turnaround from the buyer. Your loan officer will keep you informed throughout.

Step 11: Final Walk-Through

Timeline: 24–48 hours before closing

Just before closing, you'll do a final walk-through of the home with your real estate agent. This is your chance to verify:

• The home is in the same condition it was when you made your offer

• Any negotiated repairs were completed

• All appliances, fixtures, and items included in the sale are present and working

• The seller has vacated the property

If something is wrong, contact your agent immediately. You have options before you sign.

Step 12: Closing Day

Timeline: 30–60 days after contract execution (typical)

Closing day is the finish line. You'll meet (typically at a title company) to sign your final loan documents. You'll need:

• A valid government-issued photo ID

• A cashier's check or wire transfer for your closing costs (your loan officer will give you the exact amount in advance via a document called the Closing Disclosure)

You'll sign a stack of documents; your loan officer or the title company will walk you through each one. The whole process typically takes 1–2 hours.

Once everything is signed and funds are transferred, you'll receive the keys to your home.

Congratulations. You're a homeowner.

What Happens After Closing?

A few important items for your first days as a homeowner:

File for your homestead exemption with your county appraisal district (in Bexar County, that's the Bexar County Appraisal District at bcad.org). This reduces your property tax bill and must be filed by April 30.

Set up your mortgage payments. Your first payment is typically due on the first of the month following 30 days after closing. Your servicer will send instructions.

Change your locks. A simple, low-cost first step that most new homeowners forget.

Keep your homeowner's insurance active; it's required by your lender and protects your investment.

Ready to Start Your Journey?

TLP Mortgage, Powered by Pilgrim Mortgage® | NMLS #225091 | 4372 N Loop 1604 W Suite 203, Shavano Park TX 78249 | Equal Housing Lender

This content is for informational purposes only. Process timelines, documentation requirements, and program details vary by loan type, lender, and individual circumstances. Consult a licensed TLP loan officer for guidance specific to your situation.