First-Time Buyer Checklist for Austin, TX Homes

What do first-time homebuyers need to know before buying a home in Austin, Texas? 

It’s a common question—and a smart one to ask. Buying your first home is a major milestone, and in a dynamic market like Austin, preparation is everything.

Whether you're moving from another Texas city, relocating for work, or finally ready to ditch renting, this guide will walk you through the essential first-time buyer checklist tailored to the Austin, Texas real estate market. I’m Brandon Holley, real estate broker and founder of Holley Homes Realty, and I’ve helped hundreds of buyers across Central Texas navigate this process with clarity and confidence. Here’s how to get started.

Step 1: Know Your Budget and Monthly Comfort Zone

Before you even browse Zillow or tour a model home, you need to define what you can realistically afford in Austin, Texas.

Budget tips for first-time buyers:

Don’t rely solely on the pre-approval number. Focus on what fits your lifestyle.

• Factor in property taxes, which are higher in Texas than in many states.
• Don’t forget MUD taxes, HOA fees, utilities, and maintenance costs.
• Work with a lender who understands Austin's market nuances, and be conservative in estimating how much house you can carry.

Step 2: Get Pre-Approved With a Local Lender

Pre-approval is more than a formality—it gives you credibility and insight. In Austin’s slower-but-still-competitive market, sellers want to know you're serious.

Choose a local lender because:

• They understand neighborhood-specific tax rates
• They're trusted by local listing agents
• You get more accurate estimates for Austin, Texas real estate conditions

We can connect you with our trusted lending partners who consistently deliver for Holley Homes Realty clients.

Step 3: Identify Your "Must-Haves" vs. "Nice-to-Haves"

Austin neighborhoods are incredibly diverse. South Austin feels nothing like Leander. East Austin is worlds apart from Buda. So, before you get attached to granite counters, know what lifestyle you want.

Start with your must-haves:

• Max commute time
• Number of bedrooms/bathrooms
• School district preferences
• New construction vs. resale
• Yard size or HOA type

We help buyers prioritize these based on actual inventory, not Pinterest boards.

Step 4: Understand the True Costs of Buying a Home in Austin

Beyond your down payment, here are the real-world costs first-time buyers in Austin need to plan for:

• Earnest Money: Usually 1% of the sales price
• Option Fee: Typically $100-500 for your right to inspect
• Inspection Costs: $400-$800, depending on property size
• Appraisal: $500-$700
• Closing Costs: Usually 2-4% of the purchase price

Ask about seller credits and builder incentives. In a slower market, you might be able to get some of these costs covered.

Step 5: Research Neighborhoods That Fit Your Budget and Lifestyle

Not sure where to start? Here are some Austin, Texas neighborhoods and nearby cities that first-time buyers should explore:

Popular Picks:

• Buda & Kyle: Affordable, growing, great schools
• Pflugerville: Close to Austin, family-friendly, good value
• Leander & Liberty Hill: New construction galore, lower taxes
• East Austin: Trendy, walkable, competitive pricing
• South Austin (78745): Classic charm, great dining, still (relatively) affordable

Holley Homes Realty offers neighborhood walkthroughs, builder insights, and side-by-side comparisons so you're never guessing.

Step 6: Prepare for the Offer and Contract Process

This is where having a strong Austin, Texas real estate agent is crucial. Our team guides you through:

• Crafting a competitive offer based on market comps
• Choosing the right loan type (FHA, VA, conventional)
• Structuring contingencies and inspection timelines
• Understanding TREC forms, HOA documents, and property disclosures

We make sure you’re protected and confident before you sign anything.

Step 7: Schedule Your Inspections and Ask Questions

Don’t skip this! Even new homes can have issues. Your option period (usually 5-10 days) is your time to:

• Inspect major systems (roof, foundation, HVAC)
• Ask for seller repairs or credits
• Walk away if something doesn’t feel right

We coordinate all vendors and explain every step so nothing is missed.

Step 8: Final Walkthrough and Closing Day

Once your financing is approved and the title is clear, it’s time to close.

Expect to:

• Sign final paperwork (we review everything with you)
• Bring your down payment and closing costs (usually via wire)
• Get keys and celebrate—you’re now a homeowner in Austin, Texas!

Before closing, we do a final walkthrough to make sure the home is in the agreed-upon condition.

BONUS: First-Time Buyer Mistakes to Avoid

• Overbuying beyond your monthly comfort zone
• Waiving inspections just to win an offer
• Not factoring in taxes and HOA fees
• Working with a part-time or out-of-market agent

At Holley Homes Realty, we specialize in first-time buyers and new construction. We take pride in educating our clients, not just closing deals.

We Understand That Now Might Not Be the Right Time

Buying your first home is a big decision, and timing matters. We never want to be pushy. Just know that we’re here when you’re ready. If you have questions, want to start planning, or need a lender referral, we’re happy to help.

Ready to Start Your Austin, TX Home Search?

Reach out today for a pressure-free consultation. Call or text Brandon Holley directly at 512.487.9242, or email brandon@holleyhomesrealty.com.

And if you’re still in research mode, explore our market insights, new construction tours, and buying tips on YouTube: Holley Homes Realty YouTube Channel