Buying a home in North Texas in 2026 presents a unique opportunity. After years of market volatility, the DFW housing market is entering a more balanced phase—one where buyers have more negotiating power, inventory is improving, and mortgage rates are gradually easing from their 2023 peaks. Whether you're a first-time buyer, relocating from out of state, or moving up to your next home, understanding the current North Texas market landscape is essential to making a confident, informed decision.
This comprehensive guide walks you through everything you need to know about buying a home in North Texas in 2026: from understanding current market conditions and securing financing to navigating Texas-specific considerations like MUD taxes, choosing the right area, and working with a buyer's agent. If you're ready to make North Texas your home, this is your roadmap.
Understanding the North Texas Housing Market in 2026
Current Market Conditions
The Dallas-Fort Worth metroplex continues to rank as one of the nation's hottest real estate markets. According to a PricewaterhouseCoopers and Urban Land Institute report, DFW topped the national rankings for the second consecutive year as the best place to buy, build, and finance property in 2026. This recognition reflects the region's robust job market, consistent population growth, and strong economic fundamentals.
Key 2026 Market Statistics:
- Median Home Price: The DFW median home price sits around $375,000 to $418,000 depending on the specific county and neighborhood, after declining approximately 2-3% from 2024 highs
- Inventory: Active listings have increased by over 22% year-over-year, providing buyers with significantly more choices than during the pandemic seller's market
- Days on Market: Homes are taking longer to sell—averaging 60-89 days on market compared to the frantic 10-14 day periods of recent years
- Market Status: The market has transitioned from a strong seller's market to a more balanced environment, with some submarkets leaning buyer-friendly
What Makes 2026 a Good Time to Buy
1. More Negotiating Power
With inventory increasing and homes sitting on the market longer, buyers have regained leverage. Sellers are more willing to negotiate on price, offer concessions for repairs, or contribute toward closing costs—dynamics that were nearly impossible during the pandemic boom.
2. Improved Affordability
Wages in North Texas are projected to grow faster than home prices in 2026, creating an affordability reset that benefits buyers. While home prices are expected to rise modestly (1-3% annually), income growth is outpacing price appreciation for the first time in years.
3. Gradual Rate Relief
Mortgage rates, which peaked near 8% in late 2023, have eased into the 6-6.5% range and are forecast to potentially dip below 6% by late 2026. Even a 0.5% reduction in mortgage rates can save buyers hundreds of dollars monthly.
4. Strong Long-Term Outlook
North Texas continues to attract major corporate relocations and thousands of new residents monthly. This sustained demand, combined with limited new construction in many established areas, supports long-term home value appreciation even as the market normalizes in the short term.
Step 1: Financial Preparation
Know Your Budget
Before you start touring homes, establish a realistic budget based on your financial situation—not just what a lender says you can borrow. A common guideline is keeping your total monthly housing payment (mortgage, taxes, insurance, HOA, and MUD if applicable) at or below 28-30% of your gross monthly income.
Calculate Your Total Monthly Payment:
Your monthly housing payment includes:
- Principal and Interest (the mortgage payment)
- Property Taxes (typically 2-3% of home value annually in North Texas)
- Homeowners Insurance ($1,500-$3,000+ annually depending on coverage and location)
- HOA Fees (if applicable, ranging from $50-$500+ monthly)
- MUD Taxes (if applicable, see Texas-specific section below)
- Private Mortgage Insurance (PMI) if putting down less than 20%
Save for Your Down Payment and Closing Costs
Down Payment:
Contrary to popular belief, you don't always need 20% down. Many buyers purchase homes with much less:
- Conventional loans: As low as 3% down for first-time buyers and lower-income borrowers (earning 80% or less of area median income); 5% down for repeat buyers
- FHA loans: 3.5% down with credit scores as low as 580
- VA loans: $0 down for eligible veterans and active military
- USDA loans: $0 down for eligible rural properties
Closing Costs:
Budget 2-5% of the purchase price for closing costs, which include:
- Loan origination fees
- Appraisal ($500-$700)
- Home inspection ($400-$600)
- Title insurance and escrow fees
- Recording fees and transfer taxes
- Prepaid property taxes and insurance
Many Texas buyers negotiate for the seller to contribute toward closing costs, especially in a balanced or buyer's market.
Check and Improve Your Credit Score
Your credit score significantly impacts your mortgage interest rate and loan approval. In North Texas's competitive market, a higher credit score translates to lower monthly payments over the life of your loan.
Credit Score Ranges:
- 740+: Best rates and terms
- 680-739: Good rates with conventional loans
- 620-679: Acceptable for most conventional loans; may see higher rates
- 580-619: FHA loan eligible; limited conventional options
- Below 580: May require substantial down payment or alternative loan products
Quick Credit Improvements:
- Pay down credit card balances below 30% of available credit
- Correct any errors on your credit report
- Avoid opening new credit accounts before applying for a mortgage
- Keep all existing accounts current
Get Pre-Approved for a Mortgage
Pre-approval is essential in today's North Texas market. Unlike pre-qualification (a rough estimate), pre-approval means a lender has reviewed your finances, credit, and employment and committed to lending you a specific amount.
Why Pre-Approval Matters:
- Shows sellers you're a serious, qualified buyer
- Provides accurate pricing for your specific situation
- Speeds up the closing process once your offer is accepted
- Helps you avoid wasting time on homes outside your budget
Documents You'll Need:
- Last 2 years of tax returns
- Last 2 months of pay stubs
- Last 2 months of bank statements
- Photo ID and Social Security card
- Documentation of additional income or assets
- Explanation of any credit issues or employment gaps
Step 2: Understanding North Texas Areas and Submarkets
The DFW metroplex is massive—covering 12 counties and 9,200+ square miles—with dramatically different characteristics, price points, and lifestyles depending on the specific city or neighborhood.
North Dallas / Collin County
Cities: Plano, Frisco, McKinney, Allen, Prosper, Celina
Median Price Range: $400,000-$600,000+
Best For: Families prioritizing top-rated schools, master-planned communities, corporate relocations
Key Features:
- Exceptional school districts (Plano ISD, Frisco ISD, Prosper ISD)
- Major corporate headquarters (Toyota, Liberty Mutual, JPMorgan Chase)
- Abundant shopping, dining, and entertainment
- Heavy emphasis on new construction and master-planned communities
- Strong appreciation history but higher price point
Denton County
Cities: Denton, Argyle, Northlake, Justin, Flower Mound, Lewisville, Little Elm
Median Price Range: $350,000-$500,000
Best For: Buyers seeking newer construction, family-friendly communities, proximity to both Dallas and Fort Worth
Key Features:
- Fastest-growing area in North Texas with significant new construction
- Mix of rural charm and suburban convenience
- Highly-rated school districts (Argyle ISD, Northwest ISD)
- Major developments by builders like Hillwood Communities
- I-35W corridor provides access to both Dallas and Fort Worth
- More affordable than North Dallas while maintaining strong appreciation
Tarrant County / West Fort Worth
Cities: Fort Worth, Keller, Southlake, Colleyville, Grapevine, North Richland Hills
Median Price Range: $345,000-$650,000 (varies widely by city)
Best For: Families, established neighborhoods, Fort Worth employment hubs
Key Features:
- Mix of established neighborhoods and new construction
- Excellent school districts (Carroll ISD, Grapevine-Colleyville ISD, Keller ISD)
- More affordable than North Dallas in many areas
- Strong sense of community and local culture
- Fort Worth proper offers more affordable entry points
South Dallas / Ellis County
Cities: Lancaster, DeSoto, Cedar Hill, Midlothian, Waxahachie
Median Price Range: $250,000-$400,000
Best For: First-time buyers, families seeking affordability with access to DFW amenities
Key Features:
- Most affordable entry point into DFW market
- Growing school districts and improving amenities
- Increasing corporate presence (Amazon fulfillment, logistics)
- Longer commute to North Dallas but improving infrastructure
- Strong appreciation potential as DFW expands southward
East Dallas / Rockwall County
Cities: Rockwall, Rowlett, Wylie, Fate
Median Price Range: $350,000-$500,000
Best For: Lake access, small-town feel with proximity to Dallas
Key Features:
- Lake Ray Hubbard access and waterfront properties
- Smaller, tight-knit communities
- Growing job market along I-30 corridor
- Mix of established and new construction homes
- Strong school districts with smaller student populations
Step 3: New Construction vs. Resale Homes
One of the first major decisions North Texas buyers face is whether to purchase new construction or a resale (existing) home. Each option has distinct advantages and considerations.
New Construction Homes
Advantages:
- Modern floor plans and energy-efficient features
- Customization options through builder design centers
- Builder warranties (Texas law now requires minimum 1 year on workmanship, 2 years on systems, 6 years on structural components under HB 2024)
- No immediate maintenance or repair needs
- Latest building codes and technology
- Brand-new appliances, HVAC, and roof
- Potential for energy savings through modern construction
- Builders increasingly willing to negotiate on price, upgrades, closing costs, and rate buydowns in 2026's more balanced market
- Third-party inspections now more commonly accepted by builders
Considerations:
- Higher price per square foot in some markets
- Development may not be complete (ongoing construction noise, unfinished landscaping)
- Fewer mature trees and established neighborhoods
- Potential for builder delays
- Often located in areas with MUD or PID taxes
- Build timeline 3-6+ months for to-be-built homes (inventory and spec homes available for faster move-in)
Where to Find New Construction in North Texas:
- Major Builders: DR Horton, Lennar, Pulte, Taylor Morrison, David Weekley
- Master-Planned Communities: Pecan Square (Northlake), Harvest (Argyle), Treeline (Justin), Landmark (Denton), Viridian (Arlington), Light Farms (Celina)
- High-Growth Areas: Denton County I-35W corridor, North Collin County, West Fort Worth
Resale Homes
Advantages:
- Established neighborhoods with mature landscaping
- Negotiable on price depending on area demand and market conditions
- May include seller concessions toward closing costs or repairs in buyer-friendly markets
- Immediate move-in (no construction delays)
- Existing landscaping, fencing, window treatments
- Proven school attendance zones and neighborhood dynamics
- May offer more square footage for the price
- Often in areas with lower property taxes (no MUD districts)
- Potential for equity if purchased below market value
Considerations:
- Older systems (HVAC, roof, plumbing) may need replacement soon
- Repairs may be needed before or shortly after move-in
- Less energy-efficient unless recently updated
- Limited or no warranty protection
- May require immediate maintenance or renovation costs
- Some issues may not be discovered during inspection
Best Practices for Resale Homes:
- Always get a professional home inspection ($400-$600)
- Budget for immediate repairs and maintenance
- Review the property disclosure and HOA documents carefully
- Ask for home warranty as part of negotiations
- Check the age and condition of major systems (HVAC, water heater, roof)
Step 4: Working with a Realtor
Why You Need a Buyer's Agent in North Texas
Many buyers—especially first-timers—wonder if they really need a real estate agent or if they can navigate the process alone to save money. In Texas, buyer's agents are typically paid by the seller through the listing commission, meaning you get professional representation at no direct cost to you.
What a Buyer's Agent Provides:
1. Market Expertise
- Deep knowledge of North Texas neighborhoods, schools, and market trends
- Access to off-market opportunities and coming-soon listings
- Accurate pricing guidance to avoid overpaying
2. Negotiation Power
- Experience negotiating price, repairs, and closing costs
- Understanding of local market norms and seller motivations
- Ability to structure competitive offers in multiple-offer situations
3. Transaction Management
- Coordination of inspections, appraisals, and title work
- Review of contracts and disclosures
- Problem-solving when issues arise
- Ensuring deadlines are met and your interests are protected
4. Texas-Specific Knowledge
- Understanding of MUD districts, property taxes, and special assessments
- Familiarity with Texas contract addenda and option periods
- Connections with local inspectors, lenders, and title companies
How to Choose the Right Realtor
Not all agents are created equal. When selecting a buyer's agent in North Texas, consider:
Essential Qualities:
- Specialization in your target area and price point
- Experience with your buyer profile (first-time, relocation, move-up)
- Knowledge of new construction if you're considering builder homes
- Strong communication and responsiveness
- Professional network of lenders, inspectors, and contractors
Questions to Ask:
- How many buyers have you represented in [target area]?
- What's your average days-to-close timeline?
- How will you help me compete in multiple-offer situations?
- Can you explain MUD taxes and how they affect my budget?
- What's your process for coordinating inspections and negotiations?
- Do you work with a team or solo?
Red Flags:
- Pressure to make quick decisions without adequate information
- Lack of knowledge about specific neighborhoods or market conditions
- Poor communication or responsiveness
Step 5: The Home Search Process
Creating Your Home Criteria
Before you start viewing homes, establish clear criteria with must-haves, nice-to-haves, and deal-breakers.
Must-Have Criteria:
- Number of bedrooms and bathrooms
- Location/commute requirements
- School district (if applicable)
- Maximum budget including all costs
- Move-in timeline
Nice-to-Have Criteria:
- Specific floor plan features (open concept, home office, outdoor space)
- Garage size
- Lot size and outdoor features
- Updated finishes
- Pool or community amenities
Deal-Breakers:
- Proximity to highways, airports, or industrial areas
- HOA restrictions you can't live with
- High-traffic streets or poor street layout
- Lack of nearby amenities
- Foundation or structural concerns
Viewing Homes Strategically
First Showings:
- Tour 5-10 homes to calibrate your expectations
- Take photos and notes (addresses, key features, concerns)
- Pay attention to neighborhood feel, not just the house
- Notice signs of deferred maintenance or underlying issues
Narrowing Your List:
- Return for second viewings on your top 2-3 choices
- Visit at different times of day (traffic patterns, noise levels)
- Walk or drive the neighborhood
- Check out nearby schools, shopping, and parks
- Talk to neighbors if possible
What to Look For During Showings:
- Foundation (cracks, slope, drainage issues)
- Roof age and condition
- HVAC age and maintenance
- Plumbing (water pressure, signs of leaks)
- Electrical (updated panel, adequate outlets)
- Natural light and flow
- Storage and closet space
- Noise levels from inside the home
Online Research Tools
MLS Search: Your Realtor will set you up with MLS access showing all available homes, including properties coming soon
Public Records:
- County Appraisal Districts: Property tax information, sales history, property characteristics
- School Ratings: GreatSchools.org, SchoolDigger.com (but visit schools in person)
- Crime Statistics: Local police department websites, NeighborhoodScout.com
- Flood Zones: FEMA flood maps, local flood plain management
Neighborhood Information:
- Google Street View for virtual neighborhood tours
- Local community Facebook groups
- City websites for development plans and zoning information
Step 6: Making an Offer
Components of a Strong Offer
In North Texas, your offer includes several key components beyond just the purchase price:
1. Purchase Price
- Based on comparable sales, property condition, and days on market
- In a balanced market, offering at or slightly below list price may be appropriate
- Overpricing is less common in 2026 than during the seller's market years
2. Earnest Money
- Typically 1-2% of purchase price
- Demonstrates your commitment to the seller
- Held in escrow and applied to closing costs or down payment
- Protected during your option period
3. Option Period
- Unique to Texas—gives you 7-10 days (typically) to conduct inspections and back out for any reason
- Costs $100-$500 (negotiable, but higher amounts show stronger commitment)
- You keep the option fee regardless of whether you proceed
- This is your primary protection as a buyer
4. Financing Contingency
- States your offer is contingent on obtaining financing
- Protects you if your lender cannot deliver the loan
- In competitive situations, cash offers or proof of strong financing help
5. Closing Date
- Typically 30-45 days from offer acceptance
- Coordinate with your lender's timeline and your moving needs
- Sellers may have preferences based on their situation
6. Seller Concessions
- Request for seller to pay portion of your closing costs
- Common in buyer-friendly markets (2-3% of purchase price)
- Can help if you're cash-constrained for closing
7. Property Inclusions
- Appliances, fixtures, window treatments typically stay
- Specify any items you want included (refrigerator, washer/dryer, lawn equipment)
- Exclude any items the seller wants to take
Negotiation Strategies for 2026
With the North Texas market more balanced than in recent years, buyers have regained leverage:
When You Have Negotiating Power:
- Homes sitting on market 60+ days
- Price reductions already occurred
- Multiple price drops
- Seller has already purchased their next home
- Home needs repairs or updates
- Property has been listed/delisted multiple times
Negotiation Tactics:
- Ask for closing cost assistance instead of lower price (helps seller's net proceeds psychologically)
- Request repairs or credits after inspection
- Negotiate option period length to give you more due diligence time
- Include appliances or items not originally included
- Request home warranty for peace of mind
In Multiple-Offer Situations:
- Increase earnest money to show commitment
- Reduce contingencies if you're financially secure
- Escalation clauses can help but should be used carefully
- Quick closing may appeal to motivated sellers
- Waiving minor repairs (but never skip inspection)
The Texas Option Period: Your Inspection Window
The Texas option period is your golden ticket to due diligence. During this 7-10 day window, you can back out for any reason—or no reason—and receive your earnest money back (you'll lose your option fee, but that's a small price for protection).
What to Do During Your Option Period:
1. Home Inspection ($400-$600)
- Hire a licensed inspector to evaluate the property thoroughly
- Attend the inspection to learn about the home
- Review the report carefully with your agent
- Identify repair needs and safety issues
2. Specialized Inspections (if needed)
- Foundation inspection: If cracks or slope observed ($300-$500)
- Roof inspection: If roof age is concerning ($150-$300)
- HVAC inspection: For older systems ($150-$300)
- Plumbing inspection: If issues suspected ($150-$300)
- Termite/pest inspection: Especially for older homes ($100-$200)
- Pool inspection: If property has a pool ($150-$300)
3. Final Decision-Making
- Negotiate repairs or credits based on inspection findings
- Decide if issues are deal-breakers
- Ensure financing is still progressing smoothly
- Verify property boundaries and survey
Common Negotiation Outcomes:
- Seller agrees to make repairs before closing
- Seller provides credit at closing for you to make repairs
- Price reduction instead of repairs
- Seller provides home warranty
- Agreement to split certain repair costs
Step 7: Texas-Specific Considerations
Understanding MUD Districts
What is a MUD?
A Municipal Utility District (MUD) is a special taxing district created to provide water, sewer, drainage, and infrastructure to developing areas—typically in master-planned communities and new construction neighborhoods outside city limits. MUDs are common throughout North Texas, especially in fast-growing areas of Denton, Collin, and Fort Worth suburbs.
How MUD Taxes Work:
- MUDs issue bonds to pay for infrastructure (water lines, sewer, roads, drainage)
- Homeowners repay these bonds through additional property taxes
- MUD tax appears as a separate line on your property tax bill
- Rates typically range from $0.25 to $1.40 per $100 of assessed property value
Example MUD Tax Calculation:
Home value: $400,000 MUD tax rate: $0.80 per $100 Annual MUD tax: ($0.80 ÷ 100) × $400,000 = $3,200/year ($267/month)
Will MUD Taxes Go Down?
MUD taxes typically decrease over time as:
- More homes are built in the district (spreading the cost among more taxpayers)
- Original bonds are paid off (though maintenance taxes may continue)
- The district matures and infrastructure debt is retired
However, MUDs may also issue new bonds for additional infrastructure, which could increase or maintain higher rates.
MUD Considerations for Buyers:
- Factor MUD taxes into your monthly budget (lenders include this in DTI calculations)
- Ask for the MUD disclosure statement before making an offer
- Research the specific MUD's bond debt and retirement timeline
- MUD taxes are in addition to county, school, and city property taxes
- Texas homestead exemption typically does not apply to MUD taxes
Finding MUD Information:
- County appraisal district websites list all taxing entities
- MUD disclosure required by Texas law during real estate transactions
- Your Realtor can help you understand specific MUD rates and districts
- MUD websites (if available) provide budget, rate, and bond information
Property Taxes in North Texas
Texas has no state income tax, which is funded largely through property taxes. North Texas property taxes are among the factors you must carefully budget for.
Average Total Property Tax Rates in North Texas:
- Collin County: 2.0-2.5% of home value annually
- Denton County: 2.0-2.4% of home value annually
- Tarrant County: 2.1-2.5% of home value annually
- Dallas County: 2.2-2.6% of home value annually
Example Annual Property Tax:
$400,000 home in Denton County Tax rate: 2.2% Annual property taxes: $400,000 × 0.022 = $8,800/year ($733/month)
Property Tax Components:
Your total property tax bill includes multiple taxing entities:
- School district (typically the largest portion)
- County
- City (if inside city limits)
- Community college district
- Hospital district
- MUD district (if applicable)
Texas Homestead Exemption:
The homestead exemption reduces your taxable value for certain taxing entities. In November 2025, Texas voters approved increasing the school district exemption:
- School district: Reduces taxable value by $140,000 (increased from $100,000 in 2025, significantly lowers school taxes)
- County/City: May offer additional exemptions (varies by entity)
- Over-65 exemption: Additional $10,000 reduction for seniors, plus a school tax freeze
- Disabled veteran exemptions: Vary based on disability rating (can be up to 100% exemption)
Application: File homestead exemption with your county appraisal district after closing (deadline is typically April 30 of the year following purchase).
PID (Public Improvement District) Assessments
What is a PID?
A Public Improvement District funds enhanced public improvements like landscaping, lighting, parks, entry monuments, and common area maintenance. PIDs are created by cities or counties and funded through special assessments on properties within the district.
PID vs. MUD:
- MUD: Provides utilities; funded through property taxes; managed by elected board
- PID: Funds aesthetic improvements; funded through special assessments; created by city ordinance
PID Assessment Characteristics:
- Often a fixed amount per year or per lot size
- May have a defined repayment term (often tied to bond repayment)
- Can sometimes be paid off in a lump sum
- Appears on your property tax bill or billed separately
Example:
- PID assessment: $850/year for specific lot
- Added to your annual property tax bill
- Term: 20 years or until bonds are repaid
HOA (Homeowners Association) Fees
Many North Texas communities—especially newer master-planned developments—have mandatory HOA fees.
What HOAs Provide:
- Common area maintenance (pools, parks, playgrounds)
- Landscaping and lawn care for common areas
- Amenity access (fitness centers, clubhouses, trails)
- Gated entry and security (in some communities)
- Trash collection (in some communities)
- Street maintenance and lighting
- Enforcement of deed restrictions and architectural standards
HOA Fee Ranges in North Texas:
- Basic HOA: $25-$100/month
- Moderate amenities: $100-$300/month
- Premium master-planned communities: $300-$500+/month
- Luxury developments with extensive amenities: $500-$1,000+/month
HOA Considerations:
- Review HOA covenants, conditions, and restrictions (CC&Rs) before buying
- Check HOA financial health and reserve fund status
- Ask about upcoming special assessments
- Understand architectural approval processes if you plan renovations
- Know what violations could result in fines
- Factor HOA fees into your monthly budget
Step 8: The Closing Process
From Contract to Closing
Once your offer is accepted, you'll typically close within 30-45 days. Here's what happens during this period:
Week 1-2: Inspections and Due Diligence
- Schedule home inspection
- Complete option period due diligence
- Negotiate repairs or credits if needed
- Finalize your decision to proceed
Week 2-3: Financing and Appraisal
- Lender orders appraisal ($500-$700)
- Provide any additional documentation to lender
- Appraisal is completed and reviewed
- Address any appraisal issues (low appraisal, required repairs)
Week 3-4: Title Work and Final Preparations
- Title company researches property ownership and liens
- Title insurance is prepared
- Final loan approval is obtained
- Schedule final walk-through (typically day before or day of closing)
Week 4+: Closing
- Review Closing Disclosure (you'll receive this at least 3 days before closing)
- Wire down payment and closing costs to title company
- Attend closing appointment to sign documents
- Receive keys and celebrate!
Closing Costs Breakdown
Expect to pay 2-5% of the purchase price in closing costs. On a $400,000 home, that's $8,000-$20,000.
Typical Closing Costs Include:
- Loan origination fee: 0.5-1% of loan amount
- Appraisal: $500-$700
- Home inspection: $400-$600 (paid during option period)
- Title insurance: Varies by purchase price (seller typically pays in North Texas)
- Title search and escrow fees: $300-$800
- Recording fees: $50-$200
- Survey: $400-$600 (if required)
- Prepaid property taxes: Prorated from closing to end of tax year
- Prepaid homeowners insurance: First year's premium ($1,500-$3,000+)
- HOA transfer fees: $100-$500 (if applicable)
- Attorney fees: If you hire a real estate attorney (optional in Texas)
Who Pays What in Texas:
Texas closing cost customs vary, but generally:
- Seller typically pays: Title insurance policy, real estate commissions (negotiable)
- Buyer typically pays: Appraisal, inspection, loan costs (negotiable)
- Negotiable: Survey, HOA transfer fees, home warranty, recording fees
Note: All closing cost allocations are negotiable between buyer and seller.
The Final Walk-Through
Schedule your final walk-through 24-48 hours before closing.
What to Check:
- Property is in the agreed-upon condition
- All negotiated repairs have been completed
- Appliances and included items are still present
- No new damage has occurred
- Utilities are functioning (test faucets, toilets, appliances)
- Garage door openers, remotes, and keys are available
- Home is empty and clean (if agreed upon)
Red Flags During Walk-Through:
- New damage or missing items
- Incomplete repairs
- Utilities shut off or not functioning
- Trash or belongings left behind
- Issues that weren't present during option period
If you discover problems, contact your agent immediately. You may be able to delay closing until repairs are made or negotiate additional credits.
Step 9: First-Time Homebuyer Programs and Assistance
Texas offers several programs specifically designed to help first-time homebuyers overcome financial barriers.
My First Texas Home
Provider: Texas Department of Housing and Community Affairs (TDHCA)
Benefits:
- 30-year fixed-rate mortgage with below-market interest rate
- Down payment and closing cost assistance up to 5% of loan amount (no-interest deferred loan)
- Compatible with FHA, VA, and USDA loans
- Down payment assistance must be repaid when you refinance, sell, or pay off the mortgage
Eligibility:
- First-time homebuyer (haven't owned a home as primary residence in past 3 years)
- Veterans exempt from the 3-year rule
- Income limits apply (vary by county)
- Credit score typically 620+
- Complete homebuyer education course
Home Sweet Texas Home Loan
Provider: Texas State Affordable Housing Corporation (TSAHC)
Benefits:
- 30-year fixed-rate conventional or government-backed mortgage
- Up to 5% down payment assistance as either:
- Grant (does not need to be repaid), OR
- Zero-interest second mortgage (forgiven after 3 years if you don't sell or refinance)
- Can be combined with Texas Mortgage Credit Certificate (MCC)
Eligibility:
- First-time homebuyer (some exceptions for repeat buyers)
- Income limits vary by county
- Credit score requirements vary by loan type
- Complete homebuyer education course
Homes for Texas Heroes
Provider: TSAHC
Benefits:
- 30-year fixed-rate mortgage
- Up to 5% down payment assistance (grant or forgivable loan)
- Eligible for Texas MCC program
- Open to repeat homebuyers in eligible professions
Eligible Professions:
- Teachers and education professionals
- Firefighters
- EMS personnel
- Police officers
- Correctional officers
- Veterans (honorably discharged)
Texas Mortgage Credit Certificate (MCC)
What It Is:
- An annual federal tax credit for mortgage interest paid
- Reduces your federal income taxes by up to 20% of annual mortgage interest
- Can be combined with many Texas homebuyer programs
Example:
Annual mortgage interest paid: $12,000 MCC rate: 20% Annual tax credit: $2,400 Monthly benefit: $200
This $200/month effectively reduces your mortgage payment, improving affordability and buying power.
Who It Helps Most:
- First-time buyers with limited down payment funds
- Moderate-income households
- Buyers who can benefit from the tax credit (consult your tax advisor)
City-Specific Down Payment Assistance Programs
Many North Texas cities offer additional assistance:
Dallas:
- Down payment assistance grants and loans for income-qualified buyers
- Programs vary by neighborhood and funding availability
Fort Worth:
- Homebuyer assistance programs for income-qualified first-time buyers
- Down payment and closing cost assistance available
Arlington:
- Homebuyer Assistance Program: Up to $20,000 for down payment and closing costs
- Income limits apply
Houston Region (if considering suburbs near DFW):
- NeighborhoodLIFT: Up to $15,000 in down payment assistance
- Houston Housing and Community Development programs
Austin Region (if considering northern suburbs):
- City of Austin Down Payment Assistance: Up to $40,000 for qualified buyers
How to Access These Programs:
- Work with a lender familiar with Texas homebuyer assistance programs
- Complete required homebuyer education courses (typically 6-8 hours online)
- Apply early as funds are often limited and allocated first-come, first-served
- Understand income limits for your target county before assuming eligibility
Step 10: Common Mistakes to Avoid
Financial Mistakes
1. Not Getting Pre-Approved
- Touring homes without knowing your budget wastes time
- Sellers won't take your offers seriously without pre-approval
- You may fall in love with homes you can't afford
2. Maxing Out Your Budget
- Getting approved for $500,000 doesn't mean you should spend $500,000
- Leave room for unexpected repairs, property tax increases, and lifestyle flexibility
- Remember that Texas property taxes increase when home values rise
3. Forgetting About Closing Costs and Moving Expenses
- Closing costs are 2-5% of purchase price
- Moving costs, new furniture, immediate repairs, and HOA fees add up quickly
- Keep a financial cushion for the unexpected
4. Making Major Financial Changes During the Process
- Avoid opening new credit accounts, making large purchases, or changing jobs
- Lenders re-verify your finances before closing
- Changes can delay or derail your closing
5. Waiving Inspections to Compete
- Never skip the home inspection to make your offer more competitive
- The cost of a $500 inspection pales compared to discovering $20,000 in foundation issues later
- In Texas, your option period protects you—use it
Search and Decision Mistakes
6. Falling in Love with the First Home You See
- Tour at least 5-10 homes to calibrate expectations
- Return for second viewings before making decisions
- Don't let FOMO (fear of missing out) drive poor decisions
7. Ignoring Red Flags
- Foundation cracks, water damage, and deferred maintenance are expensive
- Don't assume sellers will fix everything or that repairs are cheap
- Trust your home inspector's expertise
8. Underestimating Commute Times
- North Texas traffic can be brutal during rush hour
- Test your commute at the times you'll actually be traveling
- Consider future employment or life changes
9. Skipping Neighborhood Research
- Drive the neighborhood at different times of day
- Check school ratings if children are part of your plan
- Research future development plans (could a highway or industrial site be coming?)
Process Mistakes
10. Not Understanding Texas-Specific Costs
- MUD taxes can add $200-$400/month to your payment
- Property taxes in Texas are higher than many states (2-3% annually)
- PID assessments and HOA fees stack up
11. Skipping the Final Walk-Through
- Problems can occur between contract and closing
- This is your last chance to ensure the property is in agreed-upon condition
- Missing items or incomplete repairs should be addressed before closing
12. Not Reading Documents Carefully
- Read your purchase contract, HOA documents, and MUD disclosures thoroughly
- Ask questions if you don't understand something
- Surprises at closing are never pleasant
The North Texas Lifestyle: What to Expect
Climate and Weather
North Texas experiences all four seasons with hot summers and mild winters:
- Summer: June-September, temperatures 90-100°F+, high humidity
- Fall: October-November, pleasant 60-80°F, best weather of the year
- Winter: December-February, typically mild 40-60°F, occasional freezes
- Spring: March-May, 60-80°F, tornado season (April-May peak)
Weather Considerations:
- Summer electric bills can be $300-$500+ for cooling
- Severe weather (tornados, hailstorms) is a reality—homeowners insurance is essential
- Occasional ice storms can shut down the metroplex for days
- Drought and watering restrictions occur during hot, dry summers
Transportation and Traffic
Driving is Essential:
- North Texas is car-dependent; reliable transportation is necessary
- Public transit (DART, Trinity Metro) serves limited areas
- Highways are the primary means of travel across the metroplex
Rush Hour Reality:
- Morning rush: 7:00 AM - 9:00 AM
- Evening rush: 4:00 PM - 7:00 PM
- Major highways (I-35E, I-35W, US-75, I-635) can experience periods of extreme congestion during peak hours
- Living near your workplace significantly improves quality of life
Major Highways:
- I-35E/I-35W: North-south through Dallas and Fort Worth
- US-75 (Central Expressway): North Dallas artery
- I-635 (LBJ Freeway): North Dallas loop
- President George Bush Turnpike: Toll road loop through Plano/Richardson
- Dallas North Tollway: Major north-south toll road
Cost of Living
Overall: North Texas cost of living is lower than coastal cities but higher than rural Texas
What's Affordable:
- Gasoline
- Groceries
- Dining out
- Entertainment
- No state income tax
What's Expensive:
- Property taxes (2-3% of home value annually)
- Homeowners insurance ($1,500-$3,000+/year)
- Summer cooling costs
- Toll road expenses (if your commute uses them)
- Private school tuition (if choosing private over public schools)
Job Market and Economy
Major Industries:
- Technology and telecommunications
- Finance and insurance
- Healthcare
- Logistics and distribution
- Aerospace and defense
- Energy
Major Employers:
- American Airlines (Fort Worth)
- AT&T (Dallas)
- Texas Health Resources (Arlington/Fort Worth)
- Toyota North America (Plano)
- JPMorgan Chase (Plano)
- Liberty Mutual (Plano)
- Amazon (multiple distribution centers)
Economic Outlook:
- Consistent job growth attracts thousands of new residents monthly
- Corporate relocations from California and other high-tax states continue
- Unemployment rates below national average
- Growing startup and entrepreneurship scene
2026 Market Predictions and Trends
What Experts Expect in 2026
Home Prices:
- Modest appreciation of 1-3% annually across North Texas
- Northeast and established neighborhoods may see stronger appreciation
- Areas with high new construction inventory may see flatter pricing
- No crash expected; market normalization is underway
Mortgage Rates:
- Expected to remain in the 6.0-6.5% range for most of 2026
- Potential to dip below 6% by late 2026 if Federal Reserve cuts rates
- Unlikely to return to pandemic-era lows (3-4%) in the near term
- Even small rate decreases significantly impact affordability
Inventory:
- Inventory levels expected to remain elevated compared to 2021-2022
- More choices for buyers; less frantic bidding wars
- Days on market will remain higher, giving buyers time for due diligence
Sales Volume:
- Sales expected to increase as affordability improves
- Wage growth outpacing home price growth for first time in years
- "Lock-in effect" loosening as rate gap between old and new mortgages shrinks
Long-Term Outlook: Why North Texas Remains Strong
Population Growth:
- DFW adds 100,000+ new residents annually
- Corporate relocations continue (Toyota, Tesla, CBRE, others)
- Migration from higher-cost states (California, New York, Illinois) ongoing
Economic Diversity:
- Multiple industries prevent over-reliance on one sector
- Business-friendly environment attracts companies
- No state income tax remains a major draw
Quality of Life:
- Affordable relative to coastal cities
- Strong schools and family-friendly communities
- Growing cultural amenities, dining, and entertainment
- Multiple professional sports teams and attractions
Infrastructure Investment:
- DFW International Airport expansion
- Highway improvements and new toll roads
- Water supply planning for continued growth
Bottom Line: Even as the market normalizes in 2026, North Texas remains one of the strongest long-term real estate markets in the country. For buyers willing to do their homework, 2026 presents an opportunity to purchase in a less frenzied environment while still benefiting from the region's sustained growth trajectory.
Frequently Asked Questions
Is 2026 a good time to buy a home in North Texas?
Yes. The North Texas market in 2026 is more balanced than it's been in years, with increased inventory, less competition, and gradually easing mortgage rates. Buyers have regained negotiating power while still benefiting from the region's strong long-term growth fundamentals. Wages are growing faster than home prices for the first time in years, improving overall affordability.
How much do I need for a down payment in Texas?
It depends on your loan type and buyer status. FHA loans require as little as 3.5% down, conventional loans require 3% down for first-time buyers and lower-income buyers (earning 80% or less of area median income) or 5% down for repeat buyers, and VA/USDA loans offer $0 down options. However, putting down less than 20% typically requires private mortgage insurance (PMI). Many Texas first-time homebuyer programs offer down payment assistance of up to 5% of the purchase price.
What are MUD taxes and how much do they add to my monthly payment?
MUD (Municipal Utility District) taxes fund water, sewer, and infrastructure in developing areas. Rates typically range from $0.25 to $1.40 per $100 of home value. On a $400,000 home with a $0.80 MUD rate, expect to pay approximately $3,200/year or $267/month in MUD taxes. These appear as a separate line item on your property tax bill and are in addition to regular property taxes.
Do I need a real estate agent to buy a home in North Texas?
While not legally required, working with a buyer's agent is highly recommended. Buyer's agents are typically paid by the seller through the listing commission, meaning you get professional representation at no direct cost. They provide market expertise, negotiation skills, transaction coordination, and protect your interests throughout the process—especially valuable given Texas-specific considerations like MUD districts and option periods.
How long does it take to buy a home in North Texas?
From offer acceptance to closing typically takes 30-45 days. However, the entire process from beginning your search to closing can take 2-4 months depending on how quickly you find the right home, how competitive your market is, and your financing timeline. Getting pre-approved before you start shopping significantly speeds up the process.
What's the difference between pre-qualification and pre-approval?
Pre-qualification is an estimate of what you might be able to borrow based on self-reported financial information. Pre-approval is a conditional commitment from a lender after they've reviewed your credit, income, assets, and employment. Pre-approval carries much more weight with sellers and is essential in North Texas's competitive market.
Should I buy new construction or a resale home?
Both have advantages. New construction offers modern features, warranties, and customization but often comes with higher prices, MUD taxes, and construction timelines. Resale homes offer established neighborhoods, negotiable pricing, and immediate occupancy but may need repairs and updates. Your decision should be based on your budget, timeline, and lifestyle preferences.
What is the Texas option period?
The option period is a unique Texas contract feature that gives buyers 7-10 days (typically) to conduct inspections and back out of the contract for any reason while receiving their earnest money back. You pay a small option fee ($100-$500) for this protection, which you keep regardless of whether you proceed. This is your primary protection period for due diligence.
How high are property taxes in North Texas?
Property taxes in North Texas typically range from 2.0-2.6% of your home's appraised value annually, varying by county and city. On a $400,000 home, expect $8,000-$10,400 in annual property taxes ($667-$867/month). Texas has no state income tax, which is funded partly through higher property taxes. The homestead exemption can reduce your taxable value by $140,000 for school district taxes (increased from $100,000 in 2025), providing significant tax savings for homeowners.
Can I negotiate repairs after the home inspection?
Yes. During your option period, you can request that the seller make repairs, provide credits for you to make repairs, reduce the purchase price, or provide a home warranty. In 2026's more balanced market, sellers are often more willing to negotiate than during the recent seller's market years. Your agent will help you determine which repairs to request based on their cost and importance.
Ready to Buy Your North Texas Home?
Buying a home in North Texas in 2026 offers a unique window of opportunity. The market has shifted from the frenzied competition of recent years to a more balanced environment where buyers have time to make thoughtful decisions, negotiate effectively, and find homes that truly meet their needs.
The DFW metroplex continues to offer strong job growth, excellent schools, diverse communities, and a high quality of life—all while remaining more affordable than coastal markets. Whether you're drawn to the established neighborhoods of Plano, the rapid growth of Denton County, the family-friendly communities of Fort Worth suburbs, or the affordability of southern DFW, North Texas has something for every buyer.
Your Next Steps:
- Get your finances in order: Check your credit, save for your down payment, and get pre-approved
- Define your criteria: Location, schools, commute, home type, and budget
- Choose the right agent: Find a buyer's agent who specializes in your target area
- Start your search: Tour homes, research neighborhoods, and take your time
- Make informed offers: Use your agent's expertise to structure competitive but fair offers
- Complete due diligence: Use your option period to thoroughly inspect and verify
- Close with confidence: Coordinate with your lender and title company for a smooth closing
The journey to homeownership in North Texas is exciting, and with the right preparation and guidance, 2026 could be the year you find your dream home in one of America's most dynamic metropolitan areas.
Welcome home to North Texas.
Related Resources & Blog Stories
Explore North Texas Master-Planned Communities
If you're considering new construction in one of North Texas's premier master-planned communities, these comprehensive guides provide in-depth information:
- Hillwood Communities: Developer of the Year - Learn why Hillwood Properties was named Developer of the Year and what makes their communities special
- Pecan Square by Hillwood - Northlake's award-winning master-planned community with on-site schools and Town Square amenities
- Harvest by Hillwood - Argyle's premier agrihood featuring a working farm, top-rated Argyle ISD schools, and resort-style amenities
- Treeline by Hillwood - Justin's newest master-planned community with natural open spaces and family-friendly amenities
- Landmark by Hillwood - Denton's luxury master-planned community anchored by Pilot Knob's 839-foot peak
- Hillwood's I-35W Corridor Strategy - Understanding the master plan connecting Denton, Northlake, Argyle, and Justin
North Texas Market Insights
Stay informed about the latest developments and opportunities in North Texas real estate:
- CVS Pharmacy Coming to Northlake in 2026 - How new retail is transforming the I-35W corridor
- Pecan Plaza: Hillwood's New Commercial Development - The future of retail in Northlake
First-Time Homebuyer Resources
Additional resources to help you navigate the home buying process:
- Texas Department of Housing and Community Affairs (TDHCA) - Information on first-time homebuyer programs
- Texas State Affordable Housing Corporation (TSAHC) - Down payment assistance programs
- Your County Appraisal District - Property tax information and homestead exemption applications
- Alliance Network - Hyper-local news and market intelligence for the Alliance Texas corridor
Ready to Start Your North Texas Home Buying Journey?
At Miranda Realty Team, we specialize in helping buyers navigate the North Texas real estate market with spirit-led counsel and straight talk (no fluff). Whether you're a first-time buyer, relocating to the DFW area, or exploring new construction in master-planned communities, we're here to guide you every step of the way.
Our Expertise:
✅ Alliance Texas Corridor Specialists - Deep knowledge of Denton, Argyle, Northlake, and Justin ✅ First-Time Buyer Advocates - Experts in Texas homebuyer assistance programs and MUD/PID education ✅ New Construction Experts - Specialized knowledge of Hillwood Communities and builder processes ✅ Relocation Specialists - Helping out-of-state buyers discover the best North Texas has to offer
Meet the Team:
Learn more about our team at mirandarealty.team/team
Contact Us:
📧 Email: [email protected] 📱 Phone: 940.577.2051 🌐 Website: mirandarealty.team
Areas We Serve: Denton County, Collin County, Tarrant County, and the greater DFW metroplex
Stay Informed: Monthly North Texas Real Estate Newsletter
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This guide is for informational purposes only and does not constitute financial, legal, or tax advice. Market conditions, programs, and regulations are subject to change. Always consult with licensed professionals—real estate agents, lenders, attorneys, tax advisors, and inspectors—for advice specific to your situation.
