First-Time Home Buyer Loans in Austin, TX

Buying Your First Home in Central Texas

Most first-time buyers we meet are not worried about whether they want a home. They are worried about the money: how much they need saved, what their credit has to look like, and whether the payment will still feel okay a year in. Those are the right questions, and the answers are usually more encouraging than people expect.

There is no single “first-time buyer loan.” Instead, several mortgage programs have features that help newer buyers, and our job is to line them up against your budget so you can pick with clear eyes.

Finding the Right Fit

You may want to start with

• An FHA home loan if your credit is still recovering or your savings are thin.
• A VA purchase loan if you have served and have entitlement available.
• Our low down payment purchase options page to compare 3%, 3.5% and zero-down choices in one place.

Your situation needs a different angle if

• You run your own business, in which case a self-employed mortgage may read your income more fairly.
• You are buying above the conforming limit, which moves you into a jumbo home loan.

What to Have Ready

• Recent pay stubs and two years of W-2s (or tax returns if you are self-employed).
• Two months of statements for checking, savings and any retirement accounts.
• A list of monthly debts such as car loans, student loans and credit cards.
• Gift paperwork if a family member is helping with the down payment.
• Your photo ID and, if you rent, your landlord’s contact information.

Our Step-by-Step With You

1. Budget talk. We start with the payment you are comfortable with, taxes and insurance included.
2. Pre-approval. We review credit, income and savings and write a letter your agent can put behind your offer.
3. Lender shopping. As a broker we compare offers from multiple lenders and show you each rate with its APR right next to it.
4. Under contract. We order the appraisal, coordinate with title and keep your agent updated.
5. Closing prep. We walk through your Closing Disclosure with you before signing day so nothing surprises you.

First-Time Buyer Questions

Things Austin-Area Buyers Should Know

Texas has no state income tax, but property taxes make up a big part of the monthly payment here, and escrow amounts often change in the second year after the county reappraises. That is why we suggest filing your homestead exemption right after you move in, and why we explain why escrow can raise your payment in year two. Buyers who are open to Pflugerville, Leander, Kyle or Buda often find more house for the money than in central Austin, and new-construction builders in those areas sometimes offer closing cost help worth comparing.