It's time to start buying a house in Houston! US News ranks Houston in the top 10 big cities to live in the United States. Houston is a great city with an affordable cost of living, top restaurants and things to do, and great houses for sale. According to Redfin, 20,108 homes for sale in Houston TX were sold in 2024. That's roughly 55 homes every day and roughly two homes for sale in Houston TX every hour. These statistics may make you think that figuring out how to buy a house in Houston is easy.
In reality, the home buying process can be a bit complicated. Buying a house in Houston requires studying the Houston real estate market and your personal finances. It also means finding the right real estate agent in Houston to handle your house hunting.
But don't panic. You can figure out the essentials of buying a house in Houston by reading this simple guide. Here's what to know about how to buy a house in Houston.
Decide if You're Ready to Start Buying a House in Houston TX
Buying a house in Houston is a significant financial and time commitment. Most people buying a house in Houston require a mortgage or down payment assistance. Even if you can cover the cost of your home, buying a home may not make financial sense. You should look at a few things before deciding on buying a house in Houston. Talk to a financial advisor and an accountant for additional advice on buying a house in Houston.
Liquid Assets
Your liquid assets are any assets that you can easily convert into cash for buying a house in Houston. They include the cash you have in your bank account, checking accounts, stocks, bonds, and life insurance. The more liquid assets you have, the easier buying a house in Houston will be. If you have a low amount of liquid assets, you should wait until you have more before you buy a home. You should be able to cover at least 20% of your down payment, if not more, with the cash you have.
Employment and Income
Mortgage lenders will not give you a mortgage for buying a house in Houston if you are unemployed or have unsteady employment. You should have a full-time job that will give you a consistent monthly or yearly salary. Your income should be high enough that you can cover a significant portion of your down payment and your initial mortgage payment, at a minimum. You can prove your employment and income with pay stubs, W-2 forms, and tax returns.
Debt-To-Income Ratio
Your debt-to-income ratio is the ratio of your current debts to your current yearly income. Your current debts include child support payments, credit card payments, student loan payments, and any other payments you have. Your ratio should be as small as possible, but most lenders want to see a ratio below 36%.
Credit Score
Your credit score is a prediction of your credit and loan behavior. Factors that affect your credit score include:
- Your history of paying bills and debts, including whether you've had bankruptcies
- Your current unpaid debt, if any
- The number and type of loan accounts you currently have
- The duration of your loan accounts
- How much credit you are currently using
Most credit reports have scores between 300 and 850. In general, lenders want you to have a score of at least 620.
Determine How Much You Can Afford
If you determine that you can start buying a house in Houston, you then need to figure out how much you can afford. Remember that there are several expenses associated with buying a home in Houston:
- The down payment to buy home in Houston
- Realtor's fees
- Mortgage payments
- Closing costs, including appraisal fees, title insurance, and pre-payments for homeowner's insurance
- Property taxes after you buy home in Houston
- Renovations before you move in
- Renovations and maintenance after you buy a house in Houston
- Homeowner's insurance
- Homeowner's association fees, if you're buying a townhome or a condo
Your total housing expenses shouldn't be more than 25% of your income. If you have outstanding debts, your housing expenses should be far less than 25%. You should also limit your housing expenses if you pay a lot in groceries, child care, medical expenses, or other types of expenses. Calculate how much 25% of your take-home pay is, and use that as a budget for how to buy a house in Houston.
Look At the Houston Real Estate Market
Is it a good time to buy a house in Houston? Before you start applying for mortgages, you should research the Houston real estate market, as well as the Houston cost of living. Remember that the Houston real estate market can change, so you should research it regularly and talk to a few Houston Realtors.
According to Redfin, in April 2025, the median home price in Houston was $340,000. That's down by 5.6% since April 2024. However, home prices in Houston can rise and fall without warning. In January 2025, the median price was $313,450. The price rose to $355,000 in March 2025. Homes in Houston in April 2025 spent a median of 36 days on the market, making the market somewhat competitive. Homes in Houston receive two offers on average, with a sales-to-list price of 97.3%.
Prices to buy a house in Houston vary across the city, particularly for new construction homes in Houston. Expensive neighborhoods include River Oaks and Tanglewood, which have median home prices of over $1.6 million. More affordable neighborhoods include Downtown Houston and Clear Lake, which have median home prices below $350,000. The best place to buy a house in Houston varies, so take a look at different neighborhoods at different points in the year.
The state of Texas has no state property taxes. However, Harris County imposes property taxes. You can use the Truth-in-Taxation tool to type in addresses and see how much you would pay in property taxes for specific properties. Rates vary depending on where you live in Houston, if you qualify for exemptions, and what services you need.
The Houston cost of living index is 94.1, meaning items in the Houston area cost 5.9% less than the national average. You may be able to save money or build your savings by moving to Houston.
Find the Right Mortgage and Down Payment Assistance for Houston TX Homes
You have many options for mortgages Houston TX. Here are a few Houston mortgages you should look for. Talk to an accountant and a few different mortgage lenders before you sign up for a mortgage.
Conventional Mortgages
Conventional loans or mortgages are mortgages Houston TX from private lenders and banks, not the government. Requirements for conventional mortgages vary, depending on the lenders you talk to. In general, you need to pay at least 3% of your down payment, but most lenders charge penalties if you can't cover more than 20% of your down payment.
Lenders will examine your income and credit score, so you should have all the documents about your finances to buy a house in Houston available to them. Conventional mortgages are good for people who can make monthly payments comfortably and have low debt-to-income ratios.
FHA Loans
The Federal Housing Administration (FHA) insures FHA loans, which makes them less risky for lenders. In general, FHA loans Houston have a lower down payment, so you only need to pay around 3.5% of the purchase price. You can have a credit score as low as 500 and use funds from family members or friends to pay your loan off. You can have a debt-to-income ratio as high as 57%.
VA Loans
The Department of Veterans Affairs (VA) provides VA loans Houston for service members, Veterans, and surviving spouses. VA loans have no down payment required and charge very low interest rates on monthly payments. You can take out multiple VA loans, and there is no loan limit for first time homebuyers.
First Time Home Buyer Houston Programs
A first time home buyer Houston can use a few different programs in Houston to cover the expenses of buying a house in Houston. The City of Houston offers up to $50,000 for first time homebuyers. To qualify, your household income must be at 80% or below the Area Median Income. You also must pay City of Houston property taxes and live in your home for at least five years. Your loan is fulfilled if you live in the home for five years.
The Texas State Affordable Housing Corporation (TSAHC) offers Houston mortgages and first time home buyer grants Houston for first time homebuyers in Houston. You must be a low-income resident and have a credit score of at least 620. Professional educators, police officers, firefighters, and other public servants can qualify for the Homes for Texas Heroes program from TSAHC. To qualify for TSAHC loans, you should fill out the TSAHC eligibility quiz.
Get Pre-Approved for a Mortgage
Getting pre-approved for a mortgage is an optional step in buying a house in Houston. However, getting pre-approved will increase your chances of getting a mortgage and buying a house. You can give a pre approval letter to a home seller, encouraging them to sell a home to you.
To get pre-approved, a lender will ask to see documents about your finances, including your income, credit score, and debts. It can include a hard credit inquiry, which is a thorough check of your credit history. A hard inquiry can lower your credit score by a few points, so you should avoid taking out additional loans during and after the pre-approval process. You can ask your lender for advice on how to buy a house in Houston.
The 28/36 rule is a major determinant for pre-approval. It states that a household should not spend more than 28% of its monthly income on total housing expenses, including upkeep and utilities. It also states that a household should not spend over 36% of its income on its total debts. If taking out a mortgage would be too costly for you, you are not likely to be pre-approved. You should focus on paying off your other debts and increasing your income before buying a house in Houston.
Find a Houston Real Estate Agent
The final step before you start house hunting is to contact a Houston real estate agent. Hiring a Houston real estate agent can make the process of buying a house in Houston far easier. Agents can:
- Help you look within a specific Houston neighborhood for your dream home and find out where to buy a house in Houston
- Take care of your paperwork, including paperwork for a home loan
- Set up appointments for open houses
- Research sales prices and home valuations
- Schedule home inspections and appraisals
- Answer any questions you have about how to buy a house in Houston
You can hire a Houston real estate agent earlier in the process, before you apply for pre-approval. Your agent can look over your financial documents and talk to your lender about your home loan. If you need help figuring out how to buy a house in Houston, you should hire a Houston real estate agent early on.
Not all Houston real estate agents are the same. Many are "seller's agents," meaning they specialize in selling a home, not buying a house in Houston. Look for a buyer's agent and find one with expertise in the type of home you want to buy and the area you want to live in. Spend time talking to the best Houston real estate agents so you can find the right one for you.
Go Houston House Hunting
After hiring an agent, you can actually start house hunting. House hunting in and of itself is a multi-step process, so don't rush it. Take your time, talk to your realtor, and compare options so you find the perfect home for yourself.
Make a List of Essential Features
You should make a list of at least three essential features before you start looking at homes. You can make this list at any point. Your list should touch upon:
- The location of your home, including closeness to schools, doctors' offices, grocery stores, and other important services
- The size of your home and lot
- The architectural style of your home, including the floor plan
- Amenities, including swimming pools and patios
Think about what you might need in the future in addition to what you need now. If you plan on having kids, you should get a home with an additional bedroom and space for a nursery and a play area. If you plan on taking care of your parent or an older relative, you should get a home with an additional bedroom and a floor plan that would be easy for them to navigate.
Compare Neighborhoods
Houston has over 100 official and unofficial neighborhoods, including historic districts and planned communities. You may have a good idea of where you want to live. But you shouldn't finalize your decision until you've compared a few neighborhoods. You should compare home prices, crime rates, amenities, and other features in neighborhoods.
Here are the median home prices for a few of the best neighborhoods in Houston:
Visit Open Houses Houston
You should visit open houses Houston once you figure out the right neighborhood for yourself. Ask your real estate agent to set up open houses Houston for you and see if you can get private tours. If you can't, try to visit open houses during off-peak hours, like early mornings or late evenings. Visiting during these times will give you more privacy and room to explore the home.
Visit every room, including the attic and basement. Tour the exterior of the home and get a good view of the foundation and roof. See if you can make multiple visits so you see what noise and traffic levels are like during different parts of the day.
Submit an Offer for Buying a House in Houston
You should submit an offer as soon as you decide on a good home for yourself. Other people will make offers, and being one of the first people to make an offer can increase your chances of closing on a home. Talk to your real estate agent about how much you should offer. If you're competing with other buyers, you need to offer more than the asking price. If the home has been on the market for a while, you may be able to offer less than the asking price.
The seller may make a counteroffer. You can make your own counteroffer, but it's best not to stray too far from the seller's original offer. Asking for a significantly lower price will hurt your chances of closing on your home and buying a house in Houston.
You can attach contingencies to your offer or counteroffer. Nearly all people buying a house in Houston make their offers contingent on a successful home inspection. You can also make your offer contingent on a successful home appraisal.
Making a good-faith deposit can encourage the seller to accept your offer for buying a house in Houston. You can put 3% of the total home price into an escrow account. If you're competing with other buyers, you should consider putting more money into the escrow.
Close On Your Houston Home
There are still a few tasks you need to do once your seller accepts your offer. You should have a home inspection to ensure that your home is safe to live in and doesn't require repairs or renovations. It's okay if your home needs minor fixes, like a new paint job. But if your home has significant problems with the roofing or foundation, you should not move in. You may want to do a final walkthrough with your agent to ensure everything is in order before formally buying a house in Houston.
You should close on your loan and transfer funds as soon as possible. Remain in touch with your mortgage lender and contact them once your seller accepts your offer for buying a house in Houston.
You should also sign the closing documents as soon as possible. Have your real estate agent and a housing lawyer look over the documents so everything is in order for buying a house in Houston.
Figure Out Buying a House in Houston Today
Buying a house in Houston may seem tricky, but you can learn the essentials of how to buy a house in Houston in no time. You should review your financials and see if you can buy a home, following rules like the 28/36 rule. You may need to get a mortgage, and you should look at a few options before getting pre-approved.
You should then contact real estate agents and start an in-depth house hunt, targeting a particular neighborhood. Once you find the right home, you can make an offer and close on your home, with assistance from your real estate agent, financial advisor, and housing attorney.
After closing on your Houston home, you can contact Houston movers to move into your property. PDX Movers has the best Houston movers, with over 10 years of experience. Call 346-326-1141 for a free estimate now.
