BUYERS – The REAL Costs of Owning

 The Real Cost of Buying a Home in Texas — What No One Explains Clearly (But You Deserve to Know)

Let’s be honest: buying a home in Texas right now is harder than it should be.

Property taxes feel unpredictable. Home insurance costs are rising and sometimes unstable. And most first-time or returning buyers aren’t told the real costs until they’re already halfway into the process.

I believe you deserve better clarity — not sales pressure.

So here’s the real picture of what to expect when buying a home in Texas, explained in a caring, straightforward way.

Upfront Costs Before You Even Own the House

These are expenses most buyers hit before closing:

1. Home Inspection
Typically ranges from:

• $350–$700+
  Varies based on home size, age, and add-on tests (foundation, plumbing, pests, etc.).

2. Appraisal
Required by lenders:

• Usually $450–$750+
  This confirms the home’s value for the bank.

3. Earnest Money
Often:

• 1% of the home’s price (can vary)
  This is applied toward your purchase at closing — not “lost” money.

Down Payment Expectations by Loan Type

(Estimates — lender rules vary. These are not guarantees.)

• FHA Loans: often 3.5% down

• Conventional Loans: often 3%–5% down (sometimes more)

• VA Loans: sometimes 0% down (if eligible)

• USDA Loans: sometimes 0% down (for eligible rural areas)

• Owner Financing: Often much higher than the others, avg. 20%

Down payment assistance programs may be available, but qualification rules are strict.

Closing Costs in Texas (The Part No One Likes to Talk About)

Closing costs often include:

• Lender fees

• Title company fees

• Escrow setup

• Prepaid property taxes

• Prepaid homeowners insurance

Typical estimate:

• 2%–4% of purchase price (varies by county and loan)

In Texas, property taxes are collected in advance, which can be one of the biggest surprises. The initial amount you pay each month towards this in your mortgage may CHANGE once new tax information comes out.

After You Buy: The Ongoing Costs

This is what catches many buyers off guard:

Property Taxes

• Texas does NOT have state income tax

• Local property taxes are higher than many states

• Can rise year to year (appeals are possible)

• EVERY property tax rise will affect your monthly payment

Homeowner’s Insurance

• Texas has higher-than-average insurance costs due to weather risk

• Premiums have become less predictable in recent years

• Some areas are seeing carriers restrict coverage or raise deductibles

• EVERY rise in your homeowner insurance rate will affect your monthly payment

Maintenance & Repairs
Even newer homes typically require:

• 1%–2% of the home’s value per year for upkeep such as yardwork, plumbing, HVAC, Septic, roof and structure maintenance, etc.

MONTHLY Ongoing Costs

Don’t forget that you will now be paying the following yourself every month as well (many apartments include alot of these):

• Internet Fee
• TV/Cable Fee
• Trash Pickup
• Septic quarterly & every 4 year cleaning
• Electric and gas
• Water (Co-op or City)

Why I Share This (And Why I Care)

You are not “bad with money” if this feels overwhelming.
You are not “behind” if these numbers feel heavy.

The system has grown more complex and less transparent — and I believe my job is to make it clearer, calmer, and more human.

You deserve to buy a home with eyes wide open, without fear, and without shame.

And if you choose to work with me — that’s exactly how I’ll guide you.