Start with a pre-approval, not a house
A pre-approval tells you what you can borrow and shows sellers you are serious. It takes a credit check, recent pay stubs, two years of W-2s or tax returns and two months of bank statements.
Getting pre-approved first also surfaces problems early, while there is still time to fix them.
Know your real monthly payment
Texas has no state income tax, and it makes up for it with property taxes. On many homes, taxes and insurance add 30% to 40% on top of principal and interest.
Ask for a payment estimate that uses the actual tax rate for the address, including any MUD or PID assessment.
Choose the loan that fits
Conventional loans start at 3% down. FHA loans start at 3.5% down and are more forgiving on credit. VA and USDA loans offer zero down for those who qualify.
State and local assistance programs can cover part of the down payment or closing costs. Eligibility depends on income, location and the loan type.
From contract to closing
Once your offer is accepted, expect an option period for inspections, an appraisal ordered by the lender, and underwriting review of your file.
Most purchases close in about 30 days. Avoid new credit, large deposits you cannot document and job changes until you have the keys.
This article is general education, not financial, tax or legal advice. Guidelines change and vary by lender. Talk with Mike about your own situation.