Buying
Buying Your First Home in Houston: A Step-by-Step Guide
What first-time buyers in Houston need to know about budgets, property taxes, MUDs, flood zones, option periods, and closing, from an agent who has bought homes too.
By Damian Yanez · · 2 min read
Buying your first home is exciting, and it comes with a lot of new vocabulary. I've been through it myself twice, so here's the guide I wish I'd had the first time.
1. Know your real monthly payment, not just the price
In Houston, property taxes are a big part of your monthly payment. Total tax rates often land between roughly 2% and 3% of a home's value per year once you add up the county, city, school district, and any MUD (Municipal Utility District) or PID taxes. Two homes at the same price can have very different payments.
When we compare homes, we'll compare:
- Principal and interest
- Property taxes (total rate, including MUD/PID)
- Homeowners insurance (and flood insurance if needed)
- HOA dues
2. Get pre-approved first
A pre-approval tells you what you can actually borrow and shows sellers you're serious. Ask your lender about:
- FHA, conventional, VA, and USDA options
- Down payment assistance programs (the City of Houston, Harris County, and TDHCA have offered programs. Eligibility and funding change, so ask your lender what's currently available)
- Your estimated cash to close
3. Check flood risk early
Before you fall in love with a house, look at:
- FEMA flood zone maps
- The seller's disclosure (Texas sellers must disclose known flooding)
- Flood insurance quotes, even if it's not required
4. Understand the option period
In a standard Texas contract, you can pay an option fee for a set number of days to inspect the home and back out for any reason. This is your most important protection. We'll schedule inspections quickly and use what we find to negotiate.
As an investor who has renovated homes, I can help you judge which inspection items are real problems and which are routine maintenance.
5. Earnest money, appraisal, and closing
- Earnest money goes to the title company and shows good faith, typically about 1% of the price.
- The appraisal confirms value for your lender.
- Closing costs commonly run a few percent of the price. Sellers can sometimes help pay them.
Ready to start?
Call or text me and we'll map out your budget, timeline, and the areas that fit your life. No pressure, just a plan.
