Allen Markel, REALTOR® · Texas Premier Realty

Can I Even Buy?

Buying Your First Home in the Houston Area

Most of what stops first-time buyers isn't money. It's not knowing what order things happen in, and being too embarrassed to ask a question that feels like it should have an obvious answer. Nothing here assumes you already speak the vocabulary. And two Houston-specific things wreck more first budgets than the down payment does — the property tax rate, which a MUD can push well above a neighborhood a few miles away, and flood risk, which a perfectly dry house can still carry. Both get checked before you're attached to anything.

Browse homes for sale

Is this right for you?

The honest fit

Best for

  • You've never bought before, or you haven't owned in the last three years
  • You're renting and paying more than you think a mortgage would cost
  • You have questions you feel like you should already know the answers to

Maybe not if…

  • You'll likely move again within a couple of years — that's usually too short a window for buying to pay off
  • You'd have nothing left in savings after closing; something always breaks in the first year
  • Your job or your income changed in the last few months — let it settle first, then buy

The process

How it works

  1. 01

    We talk before you look at a single house — about budget, about what you actually want, and about what you're afraid of.

  2. 02

    You get a real pre-approval, so you're shopping with a number instead of a hope.

  3. 03

    We look at homes, and I tell you what's wrong with them as well as what's right.

  4. 04

    We write an offer, negotiate, inspect, and close — and I explain each step as it arrives, not after.

The trade

What you get — and what to weigh

What you get

  • Somebody who explains things the first time you ask and again the third time
  • A straight answer on what you'll need at closing, beyond the down payment
  • Access to assistance programs most first-time buyers never hear about
  • A read on flood risk, taxes, MUDs, and HOA costs before they surprise you — Houston-specific things that wreck budgets

The trade-offs (straight talk)

  • Owning costs more monthly than the mortgage payment — taxes, insurance, and maintenance are real
  • In Texas the tax bill is a significant part of the payment and it can change after you buy
  • Buying is a poor financial move if you'll move again within a couple of years

“The two things that blindside first-time buyers here aren't down payments — they're property taxes and flood. Texas has no state income tax and it makes it up on property, and a Houston-area home can be perfectly dry and still sit in a flood zone that costs real money every year. I check both before you're emotionally attached to a house.”

Homes sold
175+Homes sold
In closed sales
$54M+In closed sales
Texas markets served
2Texas markets served
Counties served today
6Counties served today

Career totals across two Texas markets — DFW, then Greater Houston.

Questions, answered

Frequently asked questions

Less than most people assume — the twenty-percent figure is a myth for most buyers, and it exists mainly because that's the point where mortgage insurance drops off. There are loan programs with far lower requirements and assistance programs that help with the rest. The number that actually matters is your total cash to close, which includes closing costs and prepaid taxes and insurance, and a lender can give you that figure precisely.

Start with a conversation, not a house

No pressure and no sign-up required.Tell me where you are and I'll tell you what the next step actually is.

Call (832) 709-2540

Not sure this is the right path? Let's figure it out together.

A quick, no-pressure conversation is all it takes.

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Allen Markel, REALTOR® · Texas Premier Realty · TREC #0658294

Questions about First Time Buyer

What it is

  • What are the steps in buying your first home?

    We talk about budget and what you want, you get a real pre-approval, we tour homes, then write an offer, negotiate, inspect and close. We explain each step as it arrives, not after. The order is what trips most people up, so knowing it ahead of time removes much of the stress.

  • What does pre-approval mean and why do I need one?

    A pre-approval is a lender reviewing your finances and stating what they are likely willing to lend, so you shop with a number instead of a hope. Sellers also take your offer more seriously with one. It is not a final loan commitment, but it is where serious shopping starts.

  • What is the difference between pre-qualified and pre-approved?

    Pre-qualified is usually a quick estimate based on what you tell a lender. Pre-approval involves documents and a deeper review, so it carries more weight with sellers. Ask the lender which one you are getting, and aim for the pre-approval before touring seriously.

  • Does buying your first home mean I have never owned before?

    Not necessarily. Many programs define it as someone who has not owned a primary residence in the last few years. If you owned a while ago, you may still count. Check each program's wording instead of ruling yourself out on the label.

  • What vocabulary should I know before I start?

    A few terms come up quickly: earnest money, option period, closing costs, escrow, pre-approval, appraisal and title. You do not need to memorize them. We explain each when it comes up, and we are happy to explain it more than once.

Who it fits

  • Who is this page meant for?

    It is for someone who has never bought, or has not owned in a while, who may be renting and wondering if a mortgage would cost less. It also fits anyone with questions that feel like they should be obvious. Nothing here assumes you speak the vocabulary.

  • When is buying probably not the right move yet?

    If you are likely to move again within a short window, buying usually does not pay off. Also if you would have nothing in savings after closing, or if your job or earnings changed in recent months. Letting things settle first often makes sense. Talk to us to find the right timing.

  • Is it better to rent if I might move soon?

    If you expect to move within a short window, renting is often the more flexible choice because buying and selling carry costs that need time to recover. If your plans are firmer, buying may make sense. It depends on your circumstances and goals.

  • I am renting and paying a lot. Would owning cost less?

    Possibly, but owning adds costs beyond the mortgage payment such as taxes, insurance and maintenance. A fair comparison puts all of them next to your rent. We help you build that picture so you decide with real numbers.

How it works

  • What happens in the first conversation with you?

    We talk about your budget, what you actually want and what you are afraid of, before looking at any house. You leave knowing what the next step is. There is no pressure and no sign-up needed to start.

  • How do I figure out my budget?

    Start with what you can carry comfortably each month after taxes, insurance, maintenance and other costs, not just the number a lender approves. A lender gives a ceiling, and we help you decide where under it to land. We also check Houston-specific costs early.

  • How long does the whole process take from start to keys?

    It varies with how fast you find a home, how the financing moves and the seller's timeline. Preparation before you shop can shorten it. We will not promise a specific timeline, but we lay out the sequence so you can plan around it.

  • What happens after my offer is accepted?

    You move through the option period and inspection, the lender completes underwriting and the appraisal, and the title work is handled. Then you do a final walkthrough and close. We guide you through each stage and explain what is needed from you and when.

  • What is the option period and why does it matter?

    In Texas, the option period is a window you negotiate after the offer is accepted, during which you can inspect the home and typically walk away. It is one of the strongest protections a buyer has, so we use it carefully. Details are in your contract.

  • What does a home inspection cover?

    An inspection looks at the condition of the major systems and the structure, such as the roof, plumbing, electrical, heating and cooling, and foundation. It does not guarantee nothing will break later, but it helps you decide what to negotiate or whether to walk away.

  • Will you tell me what is wrong with a home as well as what is right?

    Yes. Our job is to give you an honest view, including problems, so you make a good decision. That is part of why you work with an agent on your side. We do not hide issues to get a deal done.

Costs to weigh

  • What costs come with buying beyond the down payment?

    Closing costs, prepaid items such as taxes and insurance set up in escrow, inspection and appraisal fees, moving costs and early repairs or furnishing. A lender can give your exact cash to close figure. We help you see the whole picture, not only the down payment.

  • How much should I keep in savings after closing?

    Enough that a surprise repair does not become a crisis, since something often breaks in the first year. There is no single number for everyone. If you would have nothing left after closing, it may be worth waiting a bit. We help you set a cushion that fits your situation.

  • Does flood risk affect what I should budget?

    Yes. A home can look perfectly dry and still sit in an area that carries real flood costs every year, such as insurance. We check flood risk before you are emotionally attached, so it is part of the numbers rather than a surprise later.

  • Are there assistance programs I might not know about?

    Yes, there can be programs that help with cash to close and some are aimed at specific groups. Many first buyers never hear about them. We check what fits your situation and connect you to a lender approved for the program. Terms change, so we check current details.

  • Do HOA fees matter when I am deciding what I can afford?

    Yes. A neighborhood association fee adds to your monthly cost and may affect what a lender allows. We include it in the picture early, along with taxes and insurance, so you compare homes on total monthly cost and not only price.

Offers and timing

  • How do I know what to offer on a home?

    We look at recent comparable sales, the home's condition and how the market is behaving, then decide on a price and terms with you. We also consider what you can afford long term. The right offer depends on the home, the seller and your priorities.

  • What if I lose out on a home I loved?

    It happens, and it can feel discouraging. Each attempt teaches you something about the market and your priorities, and we adjust. Being ready with a pre-approval and a clear budget makes your next offer stronger.

  • How soon should I start if I want to buy within the year?

    Sooner is better. Talking to a lender, checking assistance programs and tidying finances all take time, and waiting leaves you rushed. A conversation now costs nothing and tells you what to work on. Putting it off tends to delay everything.

  • Should I wait for rates or prices to change?

    Nobody can predict either reliably. Waiting has its own costs, like more months of renting. The better question is whether you can afford the home and plan to stay for a good while. Talk to us to find the right option for your circumstances.

Property questions

  • What should I look for when touring homes?

    Beyond the layout and finishes, look at the roof, signs of water, the age of major systems and how the lot drains. Note what you would need to fix. We point out what we notice so you are not relying only on first impressions.

  • Should I buy a home that needs work?

    It can work if the repairs are manageable and you budget for them. Inspection results and repair estimates help you see the real cost. A home that is cheaper because it needs work can end up costing more if surprises appear. Talk to us before deciding.

  • How do I check flood risk on a home I am considering?

    We look at flood information for the specific address and talk through what it means for insurance and risk. A dry house can still carry flood costs. We do this before you are attached to the home.

Compared with other options

  • Is buying a condo or townhome different from a house?

    They can differ in association fees, maintenance responsibility and how lenders review them. Some people prefer less upkeep and others want more control. We look at the total monthly cost and the rules of each so you compare fairly.

  • How is buying with an agent different from going alone?

    An agent explains the steps, helps negotiate, flags issues and reads documents with you. A written agreement now sets out how we work together and how we are paid, and you should read it first. We explain it before you sign.

Getting started

  • What should I do before talking to a lender?

    Gather a rough picture of your monthly spending, savings and any debts, and note the area and type of home you want. You do not need a perfect picture. A lender will ask for documents, and we help you understand what to expect.

Money

  • What are the minimum down payments for each loan type?

    It depends on the program, your credit and your eligibility. VA purchase loans and USDA loans can be 0% down. FHA is 3.5% down with a credit score of 580 or higher, and 10% down for scores from 500 to 579. Conventional can be as low as 3% down on programs such as HomeReady and Home Possible, and 5% or more is common. A loan originator can give you your numbers.

  • How much should I save in total before I start looking at homes?

    Add your down payment, your closing costs, which generally run 2% to 5% of the purchase price, prepaid insurance and taxes, an earnest money deposit that is credited at closing, and a cushion for repairs and moving. A lender can say how much cash a specific buyer needs, so ask a loan originator for your cash to close by name.

  • What are closing costs?

    They are the fees to complete the loan and the purchase, such as lender charges, title and escrow fees, and the items that set up your taxes and insurance. For buyers they generally run 2% to 5% of the purchase price, plus prepaid items. They vary by location, price, loan and lender. A loan originator can give you your numbers.

  • Why do closing costs catch so many first-home buyers off guard?

    Because most of the talk is about price and down payment, and closing costs get a precise number only once there is a loan and a contract. They are real, though, and they add to the cash you need. Ask a loan originator for a Loan Estimate early, so you plan for them before you fall for a house.

  • Who pays closing costs, and can I get help?

    The buyer, the seller through a concession, a lender credit, or a mix, within loan program limits: FHA 6%, USDA 6%, VA 4% concessions, and conventional 3%, 6% or 9% depending on down payment. A lender credit usually comes with a higher rate. Seller help is negotiated, not guaranteed. A loan originator can give you your numbers.

  • How can I lower the cash I need at closing?

    Several levers exist. Compare Loan Estimates from more than one lender, ask for a seller concession within program limits, consider a lender credit knowing it costs you a higher rate, and look at assistance programs. Each trade has a cost. We help you compare them on real numbers, and starting early gives you the most options.

  • How much earnest money will I need, and who holds it?

    Earnest money is a good-faith deposit made after the seller accepts your offer. It is separate from the down payment and closing costs, and it is normally credited toward what you owe at closing. The amount is negotiated in the offer and varies with the price and the market, and a title company holds it. We help you choose an amount that fits.

  • Does earnest money count toward my down payment?

    It is a separate deposit, but it is normally credited toward what you owe at closing, so you are not paying twice. The Closing Disclosure shows exactly how it was applied. Your attorney can answer legal questions about when it is refundable, and we walk through the contract deadlines with you.

  • Do I have to pay mortgage insurance, and for how long?

    Often yes when you put less down, though it depends on the loan. Conventional loans, FHA and USDA handle it differently, and VA uses a funding fee instead. The rules for removing it differ sharply by program, so ask how and when it can come off before choosing a loan. A loan originator can show you the cost.

  • What are points, and should I pay them?

    One point equals 1% of the loan amount. Paying points can lower your interest rate, while taking a lender credit can reduce cash due at closing in exchange for a higher rate. Which direction makes sense depends on how long you expect to keep the loan and how much cash you have. Ask a loan originator for both versions.

  • How much house can I afford?

    A lender looks at your documented pay, debts, credit and down payment, but what you are comfortable paying each month matters just as much. Taxes, insurance and maintenance are part of the monthly cost. Our free calculators give you a starting estimate, and a loan originator gives you the number that counts.

  • Should I borrow the maximum I am approved for?

    Not necessarily. An approval shows what a lender is willing to lend, not what leaves you comfortable after taxes, insurance, repairs and savings. Shopping within a payment you can carry matters more than a price you can qualify for. We help you set a budget before you tour, and we keep it in front of you.

  • Should I wait to save a bigger down payment before buying my first home?

    Not necessarily. Waiting can lower your payment, but it means more months of renting, and prices and conditions can change. Several programs ask for far less than twenty percent. The answer depends on your timeline and numbers, so talk to us before you decide to wait, since putting it off is the most expensive default.

Pre-approval

  • How long does a pre-approval take, and what do I need?

    The timing depends on how complete your documents are and how quickly the lender can review them. Expect to provide proof of what you earn, bank statements, identification and details about your debts. Ask the loan originator for a checklist and a timeline, and start before you tour homes so you are shopping with a real number.

  • Does getting pre-approved hurt my credit?

    A pre-approval usually involves a credit check, which can have a small effect on your score. Ask the loan originator how inquiries are handled and how multiple lender checks are treated, so there are no surprises. A conversation by itself does not pull your credit, so you can ask questions first.

  • What should I avoid doing between pre-approval and closing?

    Avoid new debt, large purchases, new accounts, job changes you have not told your loan originator about, and moving large unexplained deposits. Each can change the numbers the lender approved. Tell the loan originator first if something has to change, because a change handled early is far easier than one found late.

  • Why start with a pre-approval instead of a pre-qualification?

    Pre-qualification is a quick estimate from what you say, so it carries little weight with sellers. Pre-approval involves documents and a deeper review, and it tells you what a lender is likely to lend. Ask which one you are getting, and aim for the pre-approval before you shop in earnest.

Roles

  • What does a lender do versus what does my REALTOR do?

    A loan originator is licensed and regulated, takes your information and matches you to an appropriate loan program. You do not need to know which loan fits in advance, only to give accurate information. We are not lenders, and we do not approve or price loans. We help you use the lender's numbers to shop and write offers.

  • What does my REALTOR actually do during the process?

    We help you set a budget, find and tour homes, tell you what is wrong with them as well as what is right, write and negotiate the offer, coordinate inspections and keep the closing on track. Compensation is negotiable and agreed in writing before work starts. Ask us how that works and we will show you.

  • What do the title company and the escrow officer do?

    They handle the neutral side of the closing. The title company researches the property records and issues title insurance, and the escrow officer holds the earnest money, collects the paperwork and funds, and coordinates signing. Ask the title company what they will need from you and when.

  • What is an option period, and how does it fit the timeline?

    In a Texas offer, the option period is a negotiated window, with a fee, during which you can inspect the home and decide how to proceed. The length is negotiated. We walk through the dates in your contract with you, and your attorney can explain the legal effect of any terms.

The timeline

  • How long does it take to buy a home from start to finish?

    The shopping part varies a lot, from a few weeks to many months depending on the market and your search. After an accepted offer, closing is usually a matter of weeks and depends on the loan type, inspections and title work. Starting the pre-approval early shortens the wait.

  • Is it smarter to keep renting?

    It depends on how long you will stay, what the full monthly cost of owning would be and how much savings you would have left. Buying is usually a poor move if you will move again within two years. We can compare the numbers with you. Talk to us to find the right option for your circumstances.

  • How do I check flood risk before I fall for a house?

    A dry house can still sit in a flood zone that adds an annual cost, and a lender can require flood insurance in some areas. We check flood risk before you are attached to a home, and you should get an insurance quote early. A home that fits your budget also has to fit with the insurance.

  • What if my credit is not perfect?

    You can still buy in many cases, but it may cost more. Lower scores generally mean higher rates and larger down payments, and each program sets its own minimums. A lender looking at your actual file can tell you where you stand. Our page on buying with credit problems goes through the details.

Owning costs

  • Why does owning a home cost more than the mortgage payment?

    Because the payment is only part of it. You also pay property taxes, homeowners insurance, possibly an association fee, and maintenance. In Texas the tax part is a significant piece of the monthly cost and can change after you buy. We build all of it into your budget before you decide.

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