Your Personal Homebuying Roadmap · DFW, Texas
From Renter to Homeowner in DFW
A complete step-by-step guide built for first-time buyers in Dallas–Fort Worth — covering financing, the buying process, and real money available for your down payment.
Dallas–Fort WorthFirst-Time BuyersDown Payment Assistance
At a Glance
The Homebuying Timeline
Typical purchase: 60–90 days from pre-approval to keys in hand.
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1
Get Pre-Approved
Day 1
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2
Find a Home
Wks 1–4
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3
Make an Offer
Wk 4–6
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4
Under Contract
Wk 6–8
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5
Inspection & Appraisal
Wk 8–10
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6
Closing Day
Wk 10–12
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Step by Step
The Buying Process
Step 1 · Before You Search
Know your finances
Before anything else, pull your free credit reports at AnnualCreditReport.com and check all three bureaus — Experian, Equifax, and TransUnion. Your credit score is the single biggest lever on your mortgage interest rate.
● 620+ score generally required for conventional loans; FHA allows 580 with 3.5% down
● Pay down credit card balances below 30% utilization before applying
● Do NOT open new credit cards or make large purchases once you start the process
Step 2 · The Most Important First Step
Get pre-approved — not just pre-qualified
Pre-qualification is a quick estimate. Pre-approval means a lender has actually verified your income, assets, and credit. In the DFW market, sellers will not take your offer seriously without a pre-approval letter in hand.
● Shop at least 2–3 lenders — rates and fees vary significantly
● Multiple lender inquiries within 14–45 days count as ONE credit pull
● You’ll need: 2 years of W-2s, 2 months of bank statements, pay stubs, and photo ID
● Ask your lender about Texas-specific programs and down payment assistance upfront
Step 3 · Understanding Affordability
How much home can you afford?
Lenders use the “28/36 rule”: your monthly housing costs shouldn’t exceed 28% of gross monthly income, and total debt payments shouldn’t exceed 36%. But comfort matters — plan for property taxes, HOA fees, insurance, and maintenance.
● Texas has no state income tax — but property taxes average 1.6–2.5% of home value annually
● Budget 1–2% of home value per year for maintenance and repairs
● Get a homeowner’s insurance quote before going under contract
⚠ Updated — Texas Law Effective January 2025
Step 4 · Working with a REALTOR®
Understanding agent commissions — what the new law means for you
As of January 2025, Texas law reflects new national rules: all real estate commissions are fully negotiable, and sellers are no longer obligated to pay your buyer’s agent commission. This is a significant change every first-time buyer must understand before signing anything.
When you sign a Buyer’s Representation Agreement (required in Texas), it will state the commission rate your agent expects. What the seller agrees to pay — if anything — is negotiated as part of your offer. A good agent will work hard to get the seller to cover as much of that commission as possible. Here’s how it can play out:
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✓ Best Case Seller agrees to pay your agent’s full commission. You owe nothing toward it at closing. |
~ Partial Seller pays a portion. You pay the remainder out of pocket at closing, as stated in your Buyer’s Rep Agreement. |
✗ No Contribution Seller pays nothing. You cover your agent’s full commission — or walk away and find a different home. |
● A skilled agent will negotiate seller concessions to cover commission — increasingly common in DFW offer negotiations
● Read your Buyer’s Representation Agreement carefully — it spells out exactly what you owe and under what conditions
● If a seller won’t contribute and you don’t want to pay out of pocket, you are free to walk away and find a more cooperative seller
● Many sellers still contribute at least some portion — but it is no longer guaranteed, so budget for the possibility
● You can negotiate the commission rate in your Buyer’s Rep Agreement before signing — don’t assume it’s fixed
Bottom line: Before you start touring homes, have a clear, honest conversation with your agent about their commission, what they’ll do to get the seller to cover it, and what your out-of-pocket exposure is if the seller declines. Knowing this upfront protects you from surprises at the closing table.
Step 5 · House Hunting
Search smart in DFW’s competitive market
DFW remains one of the fastest-growing metros in the country. Popular areas for first-time buyers include Arlington, Garland, Mesquite, Grand Prairie, and parts of Fort Worth and Irving — where values are strong and starter homes are more accessible.
● Set up MLS alerts with your agent for instant notification on new listings
● Visit neighborhoods at different times of day before making an offer
● Consider school district ratings — they affect quality of life and resale value
● Don’t stretch to the very top of your budget — leave room for unexpected costs
Step 6 · Making Your Move
Write a strong, competitive offer
In Texas, all offers are written on the TREC One to Four Family Residential Contract. Your agent will guide you through price, earnest money, option period, closing date, and any concessions you’d like from the seller.
● Earnest money: typically 1% of purchase price, deposited within 3 days of acceptance
● Option period: pay a fee (usually $100–$500) for the right to back out for any reason — typically 5–10 days
● Seller concessions can help cover closing costs and/or buyer’s agent commission — ask your agent what’s reasonable in the current market
Step 7 · Protect Your Investment
Inspection & option period
Hire a licensed Texas home inspector during your option period. This is your chance to learn everything about the home — from the roof to the foundation. You can negotiate repairs, request a price reduction, or walk away entirely.
● Budget $300–$600 for a general home inspection; consider add-ons for pool, sewer scope, or pest inspection
● In Texas, sellers must disclose known defects on the Seller’s Disclosure Notice
● Attend the inspection if possible — you’ll learn how to operate and maintain your new home
Step 8 · Lender’s Turn
Appraisal & final loan approval
Your lender will order an appraisal to confirm the home’s value supports the loan amount. Meanwhile, underwriting reviews all your documents. Stay available — they may ask for additional paperwork, called “conditions.”
● Do not change jobs, make large deposits, or make new purchases during underwriting
● If the appraisal comes in low, you can renegotiate the price or make up the difference in cash
● Lock your interest rate early — ask your lender when and how to lock
Step 9 · Finish Line
Closing day — you’re a homeowner
You’ll sign documents at the title company, pay your closing costs and down payment via wire transfer or cashier’s check, and receive your keys. In Texas, closing costs typically run 2–5% of the loan amount.
● Review your Closing Disclosure carefully — you receive it at least 3 business days before closing
● Do a final walkthrough of the home 24 hours before closing
● Bring a valid photo ID — closing usually takes 1–2 hours
● File for your Homestead Exemption after January 1st of the following year to reduce your property taxes
Free Money on the Table
Down Payment Assistance Programs in DFW
Many first-time buyers are surprised to learn they don’t need 20% down — and that there’s real money available to help. These programs are widely used and completely legitimate.
Pro tip: Many of these programs can be stacked together — for example, pairing a TDHCA loan with an FHA mortgage and a city grant. Your lender must be program-approved. Always mention down payment assistance on your very first lender call.
★ Most Popular · Statewide
TDHCA My First Texas Home
Up to 5%
Texas Dept. of Housing & Community Affairs offers down payment and closing cost assistance as a 0% interest, deferred second loan. Paired with a 30-year fixed-rate first mortgage at a competitive rate.
Statewide · Income limits apply
Forgivable Grant · Statewide
TDHCA Texas Homebuyer Program — Bond DPA
Up to 5%
Assistance is forgiven after 3 years — meaning you don’t have to repay it if you stay in the home. No first-time buyer requirement for qualifying census tracts.
No repayment after 3 years
City of Fort Worth
Fort Worth Homebuyer Assistance Program
Up to $14,999
Forgivable loan for down payment and closing costs for buyers purchasing within Fort Worth city limits. Must use a participating lender and complete HUD-approved homebuyer counseling. Income limits based on area median income.
Fort Worth city limits only
City of Dallas
Dallas Homebuyer Assistance Program (DHAP)
Up to $60,000
One of the most generous local programs in the state. Provides gap financing for low-to-moderate income buyers purchasing in Dallas. Forgivable over time. Requires HUD counseling and a program-approved lender.
Dallas city limits · AMI-based income limits
Available Anywhere in DFW
FHA Loan — Low Down Payment Option
3.5% down
Federally backed loan requiring as little as 3.5% down with a 580+ credit score. More lenient on debt-to-income ratios than conventional loans. Available through most lenders. Can be combined with DPA programs above.
Any lender · 580+ credit score required
Tarrant County
Tarrant County Housing Assistance
Varies
Tarrant County and partner cities including Arlington offer periodic assistance programs for first-time buyers. Availability and funding cycles vary — ask your lender or contact Tarrant County Community Development for current offerings.
Check current availability
Know the Language
Key Terms Every Buyer Should Know
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DTI (Debt-to-Income Ratio) Your total monthly debt payments divided by gross monthly income. Most lenders want this below 43–45%. |
Earnest Money A “good faith” deposit made when your offer is accepted. Applied to your down payment or closing costs at closing. |
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Option Period (Texas-specific) A set number of days you pay for the unrestricted right to terminate the contract for any reason. |
PMI (Private Mortgage Insurance) Required when you put less than 20% down on a conventional loan. Typically 0.5–1.5% of loan amount annually. Drops off at 20% equity. |
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Closing Costs Fees due at closing beyond your down payment — includes lender fees, title, escrow, and prepaid items. Typically 2–5% of the loan amount. |
Homestead Exemption (Texas) Reduces your home’s taxable value by $100,000 for school taxes. File with your county appraisal district after January 1st. |
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Escrow Account An account your lender manages to collect and pay your property taxes and homeowner’s insurance as part of your monthly payment. |
Title Insurance Protects you from claims on the property’s ownership history. Texas requires both an owner’s and lender’s policy at closing. |
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Buyer’s Representation Agreement A contract between you and your agent (required in Texas) defining the scope of representation and the agent’s commission. |
Seller Concession When the seller agrees to pay a portion of closing costs or buyer’s agent commission as part of the negotiated offer. |
Before You Start Touring Homes
Your Pre-Search Checklist
CENTURY 21 Judge Fite Company
Ready to take the next step?
We’d love to connect you with a trusted local lender, answer your questions about DFW neighborhoods, and help you understand what buyers are experiencing in today’s market.
