Start Here: Your Texas Homebuying Journey
A complete 7-step roadmap from pre-qualification to getting your keys. Texas-specific guidance from Houston mortgage experts.
Pre-Qualification vs Pre-Approval
Understand the difference and why pre-approval gives you a competitive edge in Houston's market.
- Pre-qualification: Quick estimate based on self-reported info (15 min)
- Pre-approval: Verified income, credit, assets (24-48 hours)
- Pre-approval shows sellers you're a serious buyer
- Get pre-approved before house hunting to know your budget
- Pre-approval letters are valid for 90 days
Documents You'll Need
Gather these documents early to speed up your approval process and avoid delays.
- Last 2 years W-2s and tax returns
- Recent pay stubs (last 2 months)
- Bank statements (last 2 months, all accounts)
- Photo ID (driver's license or passport)
- Proof of additional income (rental, bonuses, etc.)
- Divorce decree or child support documentation (if applicable)
Credit Score Requirements
Different loan programs have different credit score requirements. Here's what you need.
- FHA Loans: 580+ (3.5% down) or 500-579 (10% down)
- Conventional Loans: 620+ (minimum), 740+ (best rates)
- VA Loans: No minimum (most lenders prefer 620+)
- USDA Loans: 640+ recommended
- Jumbo Loans: 700+ required
- Check your credit 6 months before applying to fix errors
Down Payment Strategies
Explore your options for coming up with a down payment, including Texas assistance programs.
- FHA: 3.5% down payment minimum
- Conventional: 3% down for first-time buyers
- VA: 0% down for veterans and active military
- USDA: 0% down for eligible rural/suburban areas
- Texas down payment assistance: up to $15,000 in grants
- Gift funds from family members are allowed (with documentation)
Making an Offer in Houston's Market
Learn how to structure a winning offer with your pre-approval letter and closing strategies.
- Include pre-approval letter with your offer
- Work with your realtor to determine competitive offer price
- Consider earnest money deposit (1-2% of purchase price)
- Negotiate seller concessions to cover closing costs
- Request reasonable inspection contingencies
- Timeline: Typical offers are responded to within 24-48 hours
Closing Day Walkthrough
What happens at closing, what to bring, and what documents you'll sign.
- Final walk-through of property (day before or morning of closing)
- Bring photo ID and cashier's check for closing costs
- Review Closing Disclosure (received 3 days prior)
- Sign loan documents, deed, and title paperwork
- Receive keys to your new home!
- Closing takes 1-2 hours typically
After Closing: Next Steps
Important actions to take after you get the keys to protect your investment.
- File homestead exemption with county (saves on property taxes)
- Set up homeowners insurance (required by lender)
- Understand your escrow account for taxes and insurance
- Keep all closing documents in a safe place
- Make your first mortgage payment (typically due 30 days after closing)
- Consider setting up automatic payments
Frequently Asked Questions
How long does the entire home buying process take in Texas?
From pre-approval to closing typically takes 30-45 days in Texas. The timeline includes: Pre-approval (1-2 days), house hunting (varies), offer acceptance (1-2 days), home inspection (7-10 days), appraisal (7-10 days), underwriting (7-14 days), and final closing (1 day). Cash buyers or streamline refinances can close faster.
What credit score do I need to buy a house in Houston?
Minimum credit scores vary by loan type: FHA loans accept 580+, Conventional loans need 620+, VA loans have no official minimum (but lenders prefer 620+), and Jumbo loans require 700+. Higher credit scores qualify for better interest rates. If your score is below 620, focus on improving credit before applying or consider FHA loans.
How much money do I need for a down payment in Texas?
Down payment requirements depend on your loan type: VA and USDA loans offer 0% down, FHA loans require 3.5% down, and Conventional loans need 3-5% down for first-time buyers or 10-20% for repeat buyers. For a $300,000 Houston home, that's $0-$60,000 depending on your loan program. Texas also offers down payment assistance programs up to $15,000.
Can I buy a house with student loan debt?
Yes! Student loans are factored into your debt-to-income ratio (DTI). Lenders typically require a DTI below 43-50%. Your monthly student loan payment (or 0.5-1% of the balance if in deferment) is included in calculations. Focus on keeping total monthly debts low and consider income-driven repayment plans to lower your payment.
What's the difference between being pre-qualified and pre-approved?
Pre-qualification is a quick estimate based on self-reported information with no credit check (takes 15 minutes). Pre-approval involves submitting documents, credit check, and lender verification of your finances (takes 24-48 hours). Pre-approval carries more weight with sellers and is required before making offers in competitive markets like Houston.
Ready to Start Your Journey?
Get pre-approved in 24 hours and start house hunting with confidence in Houston's competitive market.