First-time homebuyer guide for DFW: Step by step

Buying your first home in DFW is a big deal. Here's the process demystified.

Step 1: Check your finances

• Credit score: 620 minimum for most loans, 740+ for best rates. Free check: annualcreditreport.com
• Debt-to-income ratio: under 43% (total monthly debt / gross monthly income)
• Down payment: 3-20% depending on loan type
• Closing costs: budget 2-4% of purchase price

Step 2: Get pre-approved (not pre-qualified)

• Pre-approval = lender has verified your income, credit, and employment
• Shop 3+ lenders. Credit inquiries within 14-45 days count as one. Source: CFPB.gov
• DFW lenders to consider: Prosperity Bank, CUTX (credit union), Fairway Independent, local mortgage brokers

Step 3: Find a buyer's agent

• Buyer's agents are free to you (seller pays commission, though rules are changing — ask your agent)
• Find one who knows your target DFW area specifically
• Source: realtor.com agent finder or personal referrals

Step 4: House hunt

• Set Zillow/Redfin alerts for your criteria and target areas
• See 10-15 homes before making an offer (more in competitive areas)
• DFW tip: homes in top school districts (Frisco, Southlake, Coppell) sell faster

Step 5: Make an offer

• Your agent will guide offer price, earnest money ($1,000-5,000), and contingencies
• Inspection contingency is NON-NEGOTIABLE. Never skip this.
• DFW average: offers at 97-102% of list price (market-dependent)

Step 6: Under contract to close (30-45 days)

• Home inspection: $350-500. Worth every penny.
• Appraisal: $500-700 (lender orders this)
• Title search and insurance: required in Texas
• Survey: $400-600 (sometimes seller provides existing one)

Step 7: Close

• Sign approximately 1 million documents
• Wire closing funds (verify wire instructions by phone — wire fraud is real)
• Get keys

DFW-specific first-time buyer programs:

• TSAHC (Texas State Affordable Housing Corporation) — down payment assistance. Source: tsahc.org
• TDHCA (Texas Dept of Housing) — My First Texas Home program. Source: tdhca.state.tx.us
• Dallas Homebuyer Assistance Program — up to $40,000 in DPA for qualifying buyers. Source: dallascityhall.com

Sources:

• CFPB.gov — homebuyer guides
• TSAHC and TDHCA for Texas-specific programs
• City of Dallas Housing Department

First home purchase is stressful. But the math works in DFW if you do it right.

Sound off in the comments.