Your first-home guide for Austin, Texas

Updated November 2026

Most first-time buyer advice is written for the whole country. This guide covers the same basics, plus the Texas details that tend to surprise people.

1. Start with the full monthly cost

A list price tells you little about what you'll pay each month. In the Austin area, property taxes and insurance can take a big share of your payment, so include them from the start. Try the Austin mortgage calculator with a home you like.

2. Check your readiness

• Credit: pull your free reports at AnnualCreditReport.com and dispute any errors.
• Income: lenders usually want to see steady, documented income. Self-employed buyers should expect to provide more paperwork.
• Debts: try not to open new credit or finance big purchases before closing.
• Cash: plan for your down payment, closing costs, moving costs and a cushion for the first repair.

3. Know the main loan types

• Conventional: a common choice for buyers with solid credit. Mortgage insurance can usually be removed later.
• FHA: government-insured and often more flexible on credit. It has its own mortgage insurance rules.
• VA: for eligible veterans, service members and some surviving spouses, with strong benefits worth asking about.
• USDA: for eligible homes in designated areas, which can include some communities around Austin, for buyers within income limits.

4. Look for assistance before you shop

Texas programs can stack up differently depending on your income, county and home price, and some require a homebuyer course. See the Texas down payment assistance guide.

5. Get pre-approved

A pre-approval means your credit, income and assets have been reviewed. It gives you a realistic range and shows sellers you're serious.

6. Learn the Texas parts of the contract

• Option period: Texas buyers can pay a small negotiated fee for the right to walk away for any reason during a set number of days. Schedule your inspection during this window.
• Title insurance: basic title insurance premiums in Texas are set by the state, so the premium for the same policy shouldn't change by company.
• Survey: Texas contracts address who provides a property survey. Ask your agent if the seller's existing survey can be used.
• Financing contingency: ask your agent how the Third Party Financing Addendum protects your earnest money if your loan falls through.

7. After closing, file for your homestead exemption

Once the home is your primary residence, apply for the homestead exemption with your county appraisal district. It can lower your taxable value and also limits how quickly taxable value can rise on your homestead. Many new owners don't realize they have to apply.