Guide for First Time Home Buyers in Texas 2024 | Dream Renew

Are you a first-time home buyer in Texas and do not know how to deal with fluctuating property prices and interest rates? You are not alone, as many others have been planning to buy a new house in Texas. This article is specifically written for first time home buyer in Texas 2024 that will help you understand changed marketing conditions and opportunities for new homebuyers. Additionally, you will learn essential tips and steps to achieve your goal successfully.

Before moving further, it is essential to learn the 2024 housing forecast in Texas. So, let us start it!

Housing Forecast in 2024

Recent analyses have confirmed that mortgage rates are ready to decrease. Therefore, the experts have been confirming for months that late 2024 will be a better time for first-time home buyers in Texas to buy a house. However, some significant economic shifts and policy adjustments can improve the situation even before time, and we have been experiencing these changes even when 2024 has just started.

As we have been discussing the 2024 housing forecast and trends, we must explore different aspects of these trends. So, let us start with the following:

Purchase Time and Interest Rate Predictions

Real estate and mortgage experts think that the end of 2024 will be when first-time home buyers in Texas can choose their favorite house because it will be when mortgage rates will slightly move downwards. This downward trend will also affect the prices, which means first-time home buyers in Texas requirements to buy a house will be fulfilled.

Market Adjustments and Local Variations

Until now, we have given only an overall perspective. When discussing the local market of Texas and its variations, it is essential to remember that the Texas real estate market has steadily risen. However, at the end of 2024, the rates will be more stabilized. Moreover, there may be a slight decrease in rates. However, local trends and variations may also affect prices, which means first-time home buyers in Texas in 2024 must not expect a dramatic change in housing prices. However, they can expect stability in the real estate market.

Financial Preparations and Long-term Planning

Prepare yourself as a first-time home buyer in Texas for the rates you may find at the end 2024. Assign a specific budget to this investment and start long-term planning to deal with the loan. Getting the advice of real estate experts and mortgage advisors works exceptionally well for getting the most suitable options, according to first-time home buyers in Texas with poor credit.

Critical Takeaways for First Time Home Buyers in Texas in 2024

  • Declining home prices are observed throughout 2023, as in the first quarter of 2023, the median house price was $4,79,500, which dropped to $ 36,800. It confirms that first time home buyer benefits in Texas are more vibrant and compelling when comparing previous year benefits.
  • 30-year fixed mortgage rates are more stabilized now, remaining between 6% and 6.5% throughout 2023. It means first time home buyer in Texas can get more favorable interest rate.
  • First time home buyer in Texas credit score will matter the most in 2024. Therefore, we recommend you keep your credit score above 670. It is because you will get a mortgage loan with lower interest rates if your credit score is above the given number.

How Much Are Down Payments and Closing Costs in Texas?

Remember, you will give 20% of the total sale price as a down payment. Additionally, you also need to allocate some amount to manage closing costs. Generally, it can be between 2% and 5%. It means you must have at least 25% of the total sale price of a house in Texas. closing costs for house in texas calculator.

Closing Costs for house in Texas

Essential Tips for First Time Home Buyers in Texas to Buy a Home

Here are a few tips that will help you complete the process of buying a house in Texas:

Financial Health Check

First, you must identify how much you can invest to buy a Texas house. For example, you should calculate your home affordability. For that, choosing one of the most reliable homes is essential. However, expert opinion is more critical in this process that will help you determine your monthly income and mortgage payment.

Another essential aspect first time home buyers in Texas in 2024 must consider is their proven, steady employment history. This is because mortgage brokers and lenders check your job profile with your family background and work history. The debt-to-income ratio (DTI) also matters in getting your mortgage loan. Therefore, calculate your DTI ratio with the help of an expert.

Down payment and closing costs planning.

We have already mentioned that you must have a 20% down payment and 2-5% closing costs to get mortgage loans. However, you must be informed when someone asks, “Which loans are best for first time home buyers?”. Generally, you can get conventional mortgage, FHA, VA, or USDA loans. It depends on your requirements, and you must identify them. You must consult mortgage loan experts and lenders to guide you according to your financial position, budget, and needs.

Get the Preapproval letter!

As we have been understanding first time home buyer process in Texas, it is essential to describe when you must plan to buy your home. Preapproval letters confirm you are ready to buy a house in Texas. This letter confirms the amount you can get when buying a home in Texas. However, before this preapproval letter, focus on the previous step, where you will check which loan suits you the most.

Home Search Process Initiation

This process is the backbone of your target to achieve your target of becoming a first time home buyer in Texas. The best practice to achieve this target is to hire a real estate agent. These professionals will find the most suitable option from the MLS and identify the benefits and limitations. However, you can also find those houses for sale by owners in Texas. You can find many FSBO websites in Texas where numerous properties are waiting for you.

Here, it is essential to recommend seeing homes in person, keeping your schedule open, and attending open houses to choose the best option according to your requirements and budget.

Make an offer and schedule a home appraisal and Inspection.

Once you have finalized a house in Texas that is according to your budget, or you can negotiate to take the house in your budget, make an offer. If you are trying by yourself, we recommend you explore the market first and give the most suitable offer you can manage. However, if you have a real estate agent, he can help you choose the best option at the most affordable rates.

The next tip for first time home buyers in Texas is to hire a home inspection and appraisal firm to identify any defects in the property or any legal or financial issues related to the house. This firm will give you a home inspection report to decide accordingly. The mortgage lender needs this report to see whether the house is according to the fair market value. Once the process is completed, closing the sale is the final task.

Final Tips for First Time Home Buyers in Texas

Home buying is an exciting yet overwhelming journey. To prepare you accurately, here are a few ultimate tips:

  • You must prepare to buy a house in Texas; prioritizing early savings is necessary. You must calculate down payment and recurring costs before buying a house. More importantly, start working toward becoming successful as a first-time home buyer in Texas.
  • Maintaining a healthy credit score also matters if you want to make yourself eligible for home loans. Moreover, a healthy credit score can help you get lower interest rates.
  • You must be equipped with all paperwork to apply for a loan. This is because mortgage lenders will verify your income, expenses, savings, debts, and other crucial numbers. Therefore, follow all instructions related to taxes and other documents. Keep tax returns, W-2s, 1099s, and other papers with you to get instant approval from lenders.
  • Choosing first-time homebuyer programs helps you understand how to buy a house in Texas with lower interest rates. These programs also help you learn about first-time home buyer grants in Texas.


It is expected that 2024 will be the year for first time home buyers in Texas. The reason is that the experts have been expecting stabilizing mortgage rates with declining home prices in 2024 in Texas. So, if you are a first-time home buyer in Texas, plan now, arrange down payment and closing costs, choose the most suitable home loan programs for first time buyers, and get approvals to become a first-time homebuyer in Texas in 2024. Our given tips will help you achieve this target in time.

Frequently Asked Questions

How much do first time home buyers have to put down in Texas?

First-time home buyers in Texas typically need to put down 20% of the home’s total sale price as a down payment. However, this can vary based on the type of loan you qualify for.

How do you qualify for the first-time homebuyer program in Texas?

To qualify for a first-time home buyer program in Texas, you must meet specific criteria, such as being a first-time home buyer, having a credit score above a certain threshold (often around 670 or higher), and sometimes meeting certain income and purchase price limits.

What is the income limit for the first home in Texas?

Income limits for first-time homebuyer programs in Texas can vary based on the program and the area’s median income. You’ll need to check the specific requirements of the program you’re interested in for exact figures.

What is the lowest down payment on a house in Texas?

The lowest down payment on a house in Texas can be as little as 3% for some conventional loans. You need to pay 3.5% for FHA loans as a down payment.

How much of a down payment will I need for an FHA Loan?

For an FHA Loan, you will typically need a down payment of 3.5% if you have kept your credit score at 580 or above. If your credit score is between 500 and 579, you may be required to make a down payment of 10%.

Related Topic: Will 2024 Be an Inflation-proof Real Estate Investment Time

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