The process, in order
Step 1. Get pre-approved, with the right assumptions
A pre-approval is a lender's conditional commitment based on verified income, assets and credit. It is not the same as a pre-qualification, which is a rough estimate, and sellers in this market know the difference.
The Texas-specific part: insist your lender quotes the payment using a realistic property tax escrow of roughly 2.0 percent of purchase price for a Hutto home, plus a real Central Texas insurance quote. A national-average assumption will produce a pre-approval that falls apart at contract.
Step 2. Decide what you are actually solving for
Before touring, get concrete about the non-negotiables versus the preferences. Commute time on a weekday. School zone, verified at the address. Square footage you need versus want. Whether you can take on deferred maintenance or need everything working on day one. Writing that down saves months.
Step 3. Tour, and make an offer
In 2026 you have more time than buyers had in 2021. Hutto homes are averaging roughly 106 days on market versus about 66 a year earlier. Use that. Look at enough homes to calibrate what the price range actually buys.
Step 4. The option period, the most important two weeks
This is the Texas-specific mechanism that first-time buyers most often misunderstand, and it is genuinely favorable to you.
Step 5. Inspect properly
Use the option period. A general inspection is the baseline, and depending on the home add a foundation evaluation by a structural engineer, a sewer scope on any older home, a roof assessment, and an HVAC evaluation. On new construction, get an independent inspection anyway, including pre-drywall if you can. A new home is not an inspected home.
Step 6. Negotiate on findings, then close
Findings become leverage: repairs, credits, price reduction, or termination. With the market where it is, buyers have meaningful room here. After closing, file your homestead exemption. Do not wait.
Market timing: Redfin housing market, 78634. Option period terms are negotiated in the contract; consult your agent and read what you sign.
What you actually need to have saved
The 20 percent down payment is the most persistent myth in home buying. It is not a requirement on most loan products. Here is the real picture.
| When | What | Roughly how much |
|---|---|---|
| At contract | Option fee | A modest negotiated amount, commonly a few hundred dollars. Usually credited at closing. |
| At contract | Earnest money | Typically about 1 percent of the purchase price. Refundable during the option period, and credited at closing. |
| During option | Inspections | Paid out of pocket. A general inspection plus any specialist evaluations. |
| Before closing | Appraisal | Charged by the lender, commonly paid up front. |
| At closing | Down payment | 0 percent on VA and USDA for eligible buyers, from 3.5 percent on FHA, from 3 percent on some conventional programs. |
| At closing | Closing costs and prepaids | Lender fees, title, escrow setup for taxes and insurance. Frequently negotiable as a seller credit. |
| Amounts are illustrative and vary by lender, loan product, purchase price and negotiation. Get a Loan Estimate from your lender for real figures on your situation. | ||
Down payment assistance actually exists
Texas runs real programs, and a surprising number of buyers never look into them.
- Texas Department of Housing and Community Affairs. State homeownership programs including down payment assistance and mortgage credit certificates.
- Texas State Affordable Housing Corporation. Down payment assistance and programs targeted at teachers, first responders, veterans and corrections officers.
- HUD Texas resources. Federal programs, approved housing counselors and local assistance listings.
Eligibility depends on income limits, purchase price limits, occupancy requirements and sometimes profession. Not every lender originates every program, so ask specifically.
Program details and current eligibility: Texas Department of Housing and Community Affairs, Texas State Affordable Housing Corporation, HUD homebuying resources for Texas.
The mistakes we watch people make
- Budgeting on the purchase price instead of the payment. A 2.0 percent tax rate plus Central Texas insurance changes the affordable price meaningfully. Start from the payment you can carry and work backward.
- Walking into a builder's model home without an agent. Most builders will not compensate an agent who was not present or registered at your first visit. You lose your representation and save nothing. Bring us, or call before you go.
- Skipping inspections to make an offer stronger. This made a kind of sense in 2021's bidding wars. In a market averaging 106 days on market it is unnecessary risk for no competitive gain.
- Opening new credit before closing. Financing a car or furniture between pre-approval and closing can re-underwrite you out of the loan. Buy the couch after you have the keys.
- Never filing the homestead exemption. Free, once, and worth real money every year. We have met owners years in who never filed.
- Assuming the school zone from the listing. Verify the exact address on the district's current map. See our Hutto ISD guide.
- Not asking about MUD or PID. Some Hutto subdivisions carry an assessment above the standard rates. Ask directly on every home you are serious about.
