All 18 chapters below as quick-read summaries, plus the complete guide, one click away.
Opens in a new tab — or save a copy to keep or print. Updated 2026.
This guide walks you through the entire homebuying journey — from assessing your finances and choosing a loan program to making an offer, navigating the inspection, and understanding your closing day checklist.
Everything on this page is a quick-read summary. Click a topic below to jump straight to its summary, or scroll down to read them all in order. For the full chapter — complete explanations, worked examples, and more detail — read the full guide, opens in a new tab.
Why Chet created this guide and what you’ll find inside.
1Assess your financial readiness, calculate your DTI, and understand the 28/36 rule.
2What makes up your FICO score and how to boost it in 30–60 days before applying.
3How much you actually need — and strategies to save faster, including the 50/30/20 rule.
4Use our free affordability calculators with Texas property tax and insurance estimates built in.
5FHA, Conventional, VA, and USDA — side-by-side comparison with 2026 loan limits.
6What actually moves your rate, and the myths worth clearing up before you shop.
7Why pre-approval matters, what to avoid after getting approved, and how to get it in 24 hours.
8Complete document checklist so you're never scrambling at the last minute.
9What to look for, Texas-specific red flags (foundation, flood zones), and how to work with an agent.
10Earnest money, contingencies, the Texas Option Period, and how to handle low appraisals.
11What inspectors look for, how to read the report, and when to walk away.
12Every fee explained — and how to reduce your cash-to-close with seller concessions and lender credits.
13Texas-specific coverage considerations, flood insurance, TWIA, and how to shop effectively.
14Closing day checklist, wire fraud warning, what you'll sign, and how to avoid last-minute delays.
15How the $140,000 Homestead Exemption works and the separate school district tax most buyers miss.
16My First Texas Home, TSAHC grants, and forgivable second liens — you may qualify without knowing it.
17Your complete action plan and realistic timeline from pre-approval to keys — typically 60–90 days.
18Plain-English definitions for every term you'll encounter — from APR to USDA to the Option Period.
Want a printed or offline copy? ⬇ Save / Print PDF
Buying a home in Texas can feel overwhelming — especially with higher property taxes, changing loan guidelines, insurance costs, and all the moving parts between shopping, financing, inspections, and closing. I created this Texas Homebuyer’s Resource Guide to give you a clear, step-by-step roadmap so you can make confident decisions without surprises.
As a mortgage advisor licensed throughout Texas and locally rooted in Kerrville, San Antonio, and the Texas Hill Country, I see the same questions come up again and again: How much home can I really afford? What credit score do I need? How much cash should I budget for closing? How do property taxes and insurance affect my monthly payment?
This guide answers those questions in the order you’ll face them, so you can plan ahead, avoid common mistakes, and stay in control throughout the process.
— Chet Hearn, Senior Mortgage Advisor
Coast2Coast Mortgage · NMLS #1931461 · (830) 642-1507
Before you start shopping for homes, understand where you stand financially and what you can afford.
Calculate your monthly income, existing debts, and available savings. Lenders typically use a debt-to-income ratio (DTI) of 43–45% as a maximum threshold, though FHA, VA, and some conventional options allow up to 50%.
Formula: (Total Monthly Debt + Proposed Housing Payment) ÷ Gross Monthly Income = DTI
Most loans require DTI below 43%. The 28/36 Rule says housing costs should not exceed 28% of gross income, and total debt should not exceed 36%.
Your credit score is one of the most important factors in getting approved and determining your interest rate.
You probably need less than you think. Here’s what you need on a $300,000 home:
A quick note on that conventional figure: the 3% down option is limited to first-time buyers (or anyone who hasn’t owned a home in the past three years) and, for repeat buyers, generally requires household income at or below 80% of the area median income. Outside those cases, standard conventional financing starts at 5% down.
Don’t forget closing costs: typically 2–5% of purchase price. Many buyers use seller concessions and Texas down payment assistance to reduce cash needed at closing.
Set up automatic transfers on payday. Start with $200–500/month.
Tax refunds, bonuses, gifts — put 50%+ toward your down payment fund.
Coast2Coast Mortgage offers a home affordability calculator to help you estimate based on income, debts, down payment, and other factors.
Example: $300,000 purchase − $140,000 homestead exemption = $160,000 taxable × 1.8% = $2,880/year. Always factor this into your monthly payment estimate.
| Feature | FHA | Conventional | VA | USDA |
|---|---|---|---|---|
| Min. Down Payment | 3.5% | 3–5%* | 0% | 0% |
| Credit Score | 580+ | 620+ | 580+ | 640+ |
| Mortgage Insurance | Life of loan | Removable at 20% | None | Yes |
| Loan Limit (2026) | $541,287 | $832,750 | $832,750 | Varies |
| Best For | Lower credit | Good credit | Veterans | Rural areas |
*3% applies to first-time buyers (or anyone who hasn’t owned in the past three years) and income-qualified repeat buyers at or below 80% of area median income. Other repeat buyers start at 5% down on standard conventional financing.
Best for: First-time buyers, lower credit. Only 3.5% down with 580+ credit. Mortgage insurance required for life of loan. Lower loan limits ($541,287 in most Texas counties).
Best for: Good credit. 3% down for eligible first-time or income-qualified buyers, 5% for other repeat buyers. PMI removable at 20% equity. Higher loan limits ($832,750). Typically requires 620+ credit score.
Best for: Veterans, active military, eligible spouses. 0% down, no mortgage insurance, competitive rates. VA funding fee applies (2.15% first use under 5% down, lower with more down or on subsequent use; waived for disabled veterans).
Best for: Rural and suburban areas. 0% down, low mortgage insurance. Much of the Texas Hill Country qualifies — including parts of Kerrville, Boerne, and Fredericksburg.
Coast2Coast Mortgage is a wholesale mortgage broker — we work with a large network of wholesale lenders to find the best fit for your profile, rather than offering only one lender’s products. This often means more flexibility for credit variations, self-employed income, and unique property types.
There’s no single mortgage rate on any given day — there’s a range, and where you land in it depends on the market and the details of your own file.
Mortgage rates follow the bond market, reacting to inflation reports, employment data, and what investors expect the Federal Reserve to do next. Rates can move more than once in a single day. No individual lender — including a broker — can hold them still. What a lender can change is which loan program you use, how your file is structured, and which wholesale lender it goes to.
Working on your credit before you apply is usually the highest-return move on this list — see Chapter 2 for how to improve your score before you shop.
Advertised rates assume a particular borrower — often a strong credit score, sizable down payment, and points paid at closing. Federal rules require the APR to be shown alongside the rate, which is usually where those assumptions surface in the fine print.
Getting pre-approved is your first official step. It shows sellers you’re serious and defines your buying power.
Coast2Coast Mortgage can provide same-day pre-approval when all documents are submitted together. Maintain financial stability throughout your home search — lenders re-verify before closing.
A licensed real estate agent gives you MLS access, neighborhood expertise, negotiation skills, and contract guidance — usually free to buyers (seller pays commission).
Typically 1–2% of purchase price. Shows you’re serious, held in escrow, applied to your down payment at closing. Example: $300,000 home = $3,000–$6,000.
A negotiated window (typically 7–10 days) to conduct due diligence. Costs $100–$500 paid to seller (non-refundable). You can terminate for ANY reason and recover earnest money during this period.
Know your walk-away number before making an offer. Bidding wars trigger emotional decisions — set your maximum price and stick to it.
The home inspection reveals the property’s true condition before you finalize the deal. Cost: $300–$600. Schedule during your Option Period.
Red Flags That Should Stop a Purchase: Major foundation problems, active roof leaks, sewage failure, extensive mold, electrical fire hazards. When repair costs exceed 10–15% of home value, seriously reconsider.
↑ Back to chaptersClosing costs in Texas typically range from 2% to 5% of the purchase price. On a $300,000 home: $6,000–$15,000.
Cash to Close = Down payment + Closing costs + Prepaid items − Credits/Concessions.
Compare the full Loan Estimate — not just the rate. A lower rate with high fees may cost more than a slightly higher rate with low fees. The APR reflects the true total cost.
Homeowners insurance is required by your lender. You cannot close without proof of coverage.
In Texas, closings are handled by title companies. Typically 30–45 days after offer acceptance.
Wire Transfer Fraud Warning: Scammers send fake emails with fraudulent wiring instructions. Always call the title company directly using a verified phone number. Never trust email alone for wire instructions.
Don’t make ANY major financial changes between final approval and closing. Lenders re-verify employment and credit right before closing. A new car loan can delay or derail your closing.
↑ Back to chaptersTexas has no state property tax. Property owners pay two types of local taxes: general local government (county/city) and Independent School District (ISD) taxes — often the largest portion (50%+).
Critical: Lenders often use only the consolidated county bill for DTI calculations. Supplemental school district bills that arrive separately are often NOT included. Your actual tax obligation may be higher than your lender estimated.
Texas offers $5,000–$15,000+ in grants or forgivable loans to help qualified buyers.
No repayment required. Applied to down payment and/or closing costs.
Forgiven after 5–10 years of occupancy. No monthly payment during forgiveness period.
This guide is for educational purposes only. Loan programs, rates, and requirements subject to change. Not tax or legal advice. All loans subject to credit approval. Coast2Coast Mortgage · Updated 2026 · Equal Housing Lender
The questions Chet hears most from buyers across Kerrville, San Antonio, and the Hill Country.
Most homebuyer guides ignore what makes Texas different. This one doesn’t.
Understand the separate school district tax most lenders don’t factor in — and how the $140,000 Homestead Exemption can save you $1,500–$3,000+ per year.
A unique Texas contract provision that gives you an unrestricted exit window — most buyers don’t know how to use it strategically.
State programs offering up to $15,000+ in grants. Income limits are higher than most people expect — you may qualify right now.
Well and septic requirements, USDA-eligible areas near Kerrville and Fredericksburg, and what to watch for on rural properties.
Get the free guide, then let’s talk. A 15-minute call with Chet can save you thousands and months of uncertainty.
⬇ Get the Free Guide 📅 Book a Free Consultation ⚡ Start Pre-Approval
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