First-Time Buyer's Guide to Austin

Before you fall in love with a house, know your real number. Your true budget includes mortgage payments plus property taxes (1.8–2.5% in Austin), homeowner's insurance, HOA fees, and maintenance reserves. Most lenders allow up to 43–45% debt-to-income ratio, but a comfortable payment is typically 28–32% of gross monthly income.

Pre-approval means a lender has verified your income, assets, credit, and employment — and issued a conditional commitment to lend. In Austin's market it puts you at the front of the line. Sellers will not seriously consider offers without it, and knowing your real number prevents falling for homes outside your range.

Conventional loans offer flexibility with strong credit. FHA loans lower the entry barrier. VA loans offer exceptional terms for veterans. Texas also has TDHCA programs offering down payment and closing cost assistance for first-time buyers — these are underused and can make a meaningful difference in your out-of-pocket costs.

A home tour is a data-gathering exercise. Define your non-negotiables versus nice-to-haves. Consider commute times, school district boundaries (which affect resale value), flood zone status, and lot orientation (west-facing backyards in Austin mean brutal summer afternoons). The best buyers are disciplined shoppers first.

A competitive offer isn't always the highest — it's the best positioned. In Austin, offer strength comes from financing terms, earnest money, closing timeline, and contingencies. The Option Period (5–10 days post-contract) is your most important protection — it gives you the right to terminate for any reason while the inspector evaluates the property.

Once your offer is accepted, your lender orders an appraisal, the title company opens escrow, and your inspector evaluates the property. If inspection reveals issues, we negotiate repairs or credits. At closing, you sign documents, wire funds, and receive keys — in Texas, this typically takes 30–45 days from contract to close.