Updated
Your first home in Austin: the steps, in order
Buying a first home in Austin, Texas follows eight steps: set a comfortable monthly budget, get pre-approved, sign a written buyer agreement (required in Texas since January 1, 2026, per TREC), search and tour, make an offer, inspect during the option period, close, then file for the homestead exemption before May 1.
What monthly costs should a first-time Austin buyer plan for?
A first-time Austin buyer should plan for principal and interest, property taxes, homeowners insurance, any HOA dues or special district taxes, and ongoing maintenance, then add the cash needed at closing.
The lender will tell you what you can borrow. That is not the same as what you can comfortably pay. Build your number from the monthly total:
- Principal and interest on the loan
- Property taxes (set locally; check the county appraisal district)
- Homeowners insurance
- HOA dues or special district taxes, if any
- Maintenance -- homes need ongoing repairs
The cash at closing covers the down payment, closing costs, the option fee and earnest money, plus a cushion for move-in and repairs.
When should you get pre-approved?
Get pre-approved before you start touring Austin homes: a pre-approval shows sellers you can close and sets a realistic price ceiling.
Compare more than one lender -- rates, fees and loan programs vary. Ask each lender about programs for first-time buyers and about down payment assistance you may qualify for.
What is the Texas buyer agreement?
The Texas buyer agreement is a written contract between a buyer and a brokerage that sets out the services, how and how much the agent is paid, how long it lasts and how it ends; Texas has required one before any showing since January 1, 2026 (SB 1968, per TREC).
Read it carefully and ask questions until you are comfortable. You will also receive the TREC "Information About Brokerage Services" notice, which explains the ways a brokerage can work with you.
What should you look for when touring homes?
When touring Austin homes, look past staging and paint to the roof, foundation, windows, HVAC and drainage, because those are the expensive items to fix.
Keep the search focused on commute, budget and the features the home needs.
What goes into an offer on an Austin home?
An offer on an Austin home is written on the Texas contract forms and covers more than price: earnest money, the option period, financing terms, the closing date and any seller-paid costs all matter to both sides.
Your agent will review recent comparable sales with you before you set the price.
What is the option period in Texas?
The option period in a Texas home purchase is a negotiated number of days during which a buyer who has paid an option fee may end the contract for any reason.
Schedule inspections immediately. Use the findings to decide whether to go forward, negotiate repairs or a price change, or walk away within the period.
What happens at appraisal, title and closing?
After the option period, the lender orders an appraisal, the title company researches the title and handles the closing, and the buyer reviews the closing figures and does a final walk-through before signing.
Bring what the title company asks for on closing day.
When do you file for the homestead exemption?
File for the Texas residence homestead exemption with your county appraisal district once the home is your principal residence; the general deadline is before May 1, according to the Texas Comptroller.
The exemption lowers the taxable value of the home, which can lower your property tax bill.
Should you keep leasing while you get ready to buy?
Leasing for another year while you save and learn Austin is a sound plan for a first-time buyer who is not ready yet, and the guide Leasing vs. buying right now walks through that choice.
Our apartment search is free to renters, and we will be here when you are ready to buy.
First-time buyer questions
Are there first-time home buyer programs in Austin?
Yes. Down payment assistance for Austin-area first-time buyers is offered by public and nonprofit sources such as the Texas State Affordable Housing Corporation and the City of Austin; eligibility, limits and funding change, so confirm current terms with each program and your lender.
How much cash does an Austin home purchase take besides the down payment?
Beyond the down payment, an Austin home purchase takes cash for closing costs, the option fee, earnest money (generally credited toward the purchase at closing), and a reserve for moving and early repairs.
What is a MUD tax on an Austin-area home?
A MUD tax is a property tax levied by a municipal utility district, a Texas special district that provides water, sewer or drainage; some Austin-area neighborhoods sit inside a MUD, and the tax appears on the owner's property tax bill.
Do you need a real estate agent to buy a house in Texas?
Texas law does not require a homebuyer to use a real estate agent, but a buyer who wants an agent to show homes must first sign a written buyer agreement under SB 1968, in effect since January 1, 2026.