🏠 Moving to Texas? 5 Mortgage Decisions to Make Before You Start House Hunting 🤠

⭐ Buying a Home in Texas? Make These 5 Mortgage Moves Before You Shop 🔑

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Moving to Texas? Five Mortgage Decisions to Make Before Shopping for a Home

Moving to Texas can mean a new job, a new community, more space, or simply a new chapter. But before you start scrolling through listings in Houston, Katy, Fulshear, Dallas-Fort Worth, Austin, San Antonio, or anywhere else in the Lone Star State, there is an important first step:

Build your mortgage strategy before you build your home-shopping list.

One of the most common mistakes homebuyers make is starting with a home price instead of determining what the home will actually cost them each month.

If you're relocating to Texas, here are five mortgage decisions to make before shopping for a home.

1. Decide What Monthly Housing Payment Actually Fits Your Budget

The question isn't simply, "How much house can I qualify for?"

A better question is:

"What monthly housing payment am I comfortable carrying?"

Your total monthly housing expense may include:

·Principal and interest

·Property taxes

·Homeowners insurance

·Mortgage insurance, when applicable

·HOA dues

·Other property-specific expenses

This distinction is particularly important when moving to Texas because property taxes and homeowners insurance can materially affect the monthly cost of owning a home.

Texas does not impose a state property tax. Instead, property taxes are assessed and administered locally, so the tax burden can vary substantially from one community or property to another.

Start with the monthly payment that works for your financial goals, then work backward to determine an appropriate purchase-price range.

2. Determine How Much Cash You Want to Put Into the Transaction

Your available cash doesn't automatically determine how much you should put down.

Before shopping, consider how much liquidity you want to preserve after closing.

Depending on the mortgage program and your qualifications, you may have choices involving:

·Conventional financing

·FHA financing

·VA loans for eligible veterans and service members

·USDA financing for eligible properties and borrowers

·Jumbo mortgages

·Doctor and dentist mortgage programs

·Other specialized mortgage products

A larger down payment may lower your loan amount and monthly principal and interest, but using too much cash can leave you with less liquidity for moving costs, furniture, repairs, emergencies, or other investments.

The objective is not necessarily to make the largest down payment possible. It is to structure the financing around your broader financial position.

3. Understand Texas Property Taxes and Homeowners Insurance Before Choosing a Neighborhood

Two similarly priced Texas homes can have noticeably different monthly payments.

Why?

Property taxes and insurance.

Texas property taxes are locally assessed, and qualifying homeowners may be eligible for a residence homestead exemption. Texas currently provides a $140,000 school-district residence homestead exemption, with certain additional exemptions potentially available. Eligibility and local exemptions vary, so buyers should verify the specific property and taxing jurisdictions.

Insurance deserves the same attention. The Texas Department of Insurance reports a preliminary 2025 statewide average annual homeowners premium of $3,506, although actual premiums vary significantly based on the property, location, coverage, deductibles, insurer, and other factors.

For someone moving to Texas, this means you should evaluate the complete housing expense—not just the mortgage rate and sales price.

4. Choose the Right Mortgage Program Before You Fall in Love With a House

There isn't one "best mortgage."

There is a mortgage that best fits your particular financial situation, property, and objectives.

For example, a first-time buyer may prioritize a lower down payment. A veteran may want to evaluate VA financing. A physician relocating to Texas may benefit from exploring doctor mortgage options. A self-employed entrepreneur may require a different underwriting strategy than a salaried W-2 employee.

Your mortgage strategy should account for factors such as:

·Credit profile

·Income and employment structure

·Available assets

·Down payment

·Debt-to-income ratio

·Property type

·Expected length of ownership

·Long-term financial goals

This is one reason working with a mortgage brokerage can be valuable. Rather than assuming one loan program fits everyone, a broker can evaluate multiple financing strategies and lending sources.

5. Get Pre-Approved Before You Start Seriously Shopping

A mortgage pre-approval does more than tell you whether you may qualify.

A properly structured pre-approval can help answer three important questions:

What can I finance?

What should I comfortably spend?

Which mortgage strategy makes the most sense for me?

It can also identify potential issues involving credit, income documentation, assets, employment, or underwriting before those issues become obstacles after you've found a home.

If you're relocating for employment, discuss the timing and structure of your new position with your mortgage professional early. Job changes, bonuses, commissions, self-employment income, and other compensation structures can affect underwriting.

Moving to Texas? Build the Financing Plan First

Texas offers an enormous variety of housing markets, from major metropolitan areas to fast-growing suburban communities and smaller cities.

But don't let the excitement of house hunting cause you to skip the financial planning.

Before you tour homes, decide:

1.What monthly payment fits your budget?

2.How much cash should you put down?

3.What will property taxes and insurance do to your payment?

4.Which mortgage program fits your situation?

5.Are you fully pre-approved and ready to make an offer?

Make those decisions first, and your home search becomes much more focused.

Ready to Move to Texas?

At Medallion Funds, we help homebuyers evaluate mortgage options based on the complete financial picture—not simply a sales price or advertised interest rate.

Whether you're a first-time buyer, relocating professional, doctor or dentist, veteran, investor, or self-employed borrower, the goal is to build a mortgage strategy that fits both the home you want and the financial life you're building.

Bill Rapp
Partner & Director of Capital Advisory | Medallion Funds

Commercial Lending Nationwide

Residential Lending in AL, CA, CO, NV & TXBottom of Form

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© Bill Rapp, Medallion Funds LLC, Director of Capital Advisory