Understand the cost of
buying a home.

There is no single income-to-price formula that works for every buyer. A lender will consider income, debts, credit, available funds, interest rates and the proposed property. You should also decide what total monthly payment feels sustainable to you, which may be lower than the maximum amount for which you qualify.

Not necessarily. Different conventional and government-backed loan programs may allow smaller down payments for qualified borrowers. A lower down payment can preserve cash, but it may affect your monthly payment, interest rate, mortgage insurance and total loan cost. Ask a lender to compare several scenarios.

You can begin learning about the market before receiving a preapproval. However, a current preapproval is usually wise before serious touring or writing an offer. It helps define your working price range and may make your offer more credible to a seller. A preapproval is not a final loan approval.

Cash to close can include your down payment, closing costs, prepaid taxes and insurance, lender-required reserves and transaction-specific expenses. Earnest money and an option fee may be paid earlier in the Texas contract process but can affect the final amount due at closing. Your lender and title company can provide estimates based on the actual transaction.

The interest rate is the percentage used to calculate interest on the loan. APR is a broader measure designed to reflect the interest rate plus certain loan costs. APR can help when comparing similar loan offers, but you should also compare fees, monthly payments, cash to close and loan features.

Mortgage closing costs may include lender charges, appraisal costs, title-related charges, recording fees and prepaid expenses. The amount varies by loan, lender and property. After applying, review the lender’s Loan Estimate and ask questions about any charge you do not understand.

A fixed-rate mortgage keeps the same interest rate for the loan term. An adjustable-rate mortgage may begin with a lower rate, but the rate and payment can later change according to its index, margin and caps. Compare both the initial payment and the highest payment you could reasonably face before choosing.

Future rates and home prices cannot be predicted with certainty. The better question is whether buying now fits your finances, expected time in the home and available options. Ask a lender to model different rates and ask our team what current inventory and negotiating conditions look like in your target area.

Seller contributions may be negotiated in some transactions, subject to the contract, lender requirements, appraisal and loan-program limits. Whether asking for a contribution makes sense depends on the property, competition and the rest of the offer terms.

Comparing lenders can help you evaluate interest rates, APR, lender fees, loan programs, communication and estimated cash to close. Compare offers from the same general time period because mortgage pricing can change. Review each official Loan Estimate carefully.

Yes. We can introduce you to mortgage professionals who work with Austin-area buyers. You are never required to use a recommended lender and may choose any qualified lender you prefer.