Houses by Neda Team · North Dallas Buyer Hub
First-Time Home Buyer Guide for Frisco, Plano and Collin County
Buying your first home in Frisco, Plano, or anywhere in Collin County is very doable with a plan. Here’s the order I walk my first-time buyers through, with the real costs at each step.
Read my free buyer book: House Hunter’s Hub
Everything I walk my first-time buyers through, in one book you can flip through right here. Tap the full-screen button for easier reading.
Step 1: Know your real monthly number
Before you look at a single house, figure out the full monthly cost you’re comfortable with. In North Dallas, taxes, insurance, HOA, and PMI can add $1,000 to $1,500 a month on top of principal and interest. Use the true cost calculator so your budget is based on the real payment.
Step 2: Get your credit ready
Your credit score drives your rate and your PMI. Small fixes in the 90 days before you apply can save real money every month. My free checklist walks you through it week by week.
Step 3: Get pre-approved
A pre-approval tells you what a lender will actually lend and makes your offer stronger. Most lenders will ask for:
- Two years of tax returns and W-2s
- Your last 30 days of pay stubs
- Two months of bank statements
- A photo ID
- Details on any other debts, like car loans or student loans
Step 4: Plan your down payment and cash to close
- Conventional loans can start at 3% down for first-time buyers.
- FHA loans start at 3.5% down.
- VA loans can be 0% down for eligible veterans and service members.
- Texas programs through TDHCA and TSAHC may help with down payment for eligible buyers. Ask your lender which ones they offer.
- Plan on closing costs of roughly 2% to 3% of the price, plus your option fee and earnest money.
Step 5: Sign a buyer agreement and start touring
Texas requires a written buyer representation agreement before an agent shows you homes. It spells out what I do for you and how I’m paid. I’ll walk you through every line before you sign.
Step 6: Write a strong offer
In Texas, your offer includes an option fee and an option period, which gives you time to inspect and back out. You’ll also put down earnest money, usually about 1% of the price, which goes toward your closing costs. Right now many North Dallas sellers are negotiating, so there’s often room on price, repairs, or closing costs.
Step 7: Inspection, appraisal, and closing
During the option period you’ll get a home inspection. Your lender orders the appraisal. Before closing, check the tax certificate for MUD or PID taxes so there are no surprises. Here’s what to look for.
Step 8: File your homestead exemption
Once you own and live in the home, file your homestead exemption with the county appraisal district. On a $500,000 home it can cut your taxes by $150 to $200 a month.
Get the 90-day credit checklist
My free 7-page guide walks you through it week by week, with a document checklist and a cash-to-close worksheet. Open the 90-day credit checklist
Pick your city
See real prices and monthly costs in Frisco, Plano, Prosper, Little Elm, and Celina.
First-time buyer FAQ
How much do I need to buy my first home in Collin County? On a $450,000 home with 3% to 5% down, plan on about $13,500 to $22,500 down plus 2% to 3% in closing costs, and a monthly payment around $3,500 to $3,800 all-in.
What credit score do I need to buy a house in Texas? Many conventional loans start at 620 and FHA can go lower, but a higher score gets a better rate and cheaper PMI.
Are there first-time buyer programs in Texas? Yes. TDHCA and TSAHC offer down payment help and mortgage credit certificates for eligible buyers. Your lender can tell you which ones you qualify for.
When should I file my homestead exemption? As soon as you own and live in the home. You can file online with your county appraisal district.
Your next step
I’ll run the real monthly cost on any first home you’re looking at, taxes, HOA, PMI, and all. Book a 20-minute true cost call or try the calculator.
Houses by Neda Team | Real Broker LLC | (469) 960-5580 | Equal Housing Opportunity