Buying a Home in Dallas
Your step-by-step guide to the Dallas home buying process — from pre-approval to closing day.
How do you buy a home in Dallas?
Buying a home in Dallas follows eight core steps: find a trusted agent, get pre-approved with a lender, search and tour homes, make an offer, complete inspections during your Texas option period, order an appraisal and finalize your loan, handle final steps like utilities and your homestead exemption, and close. Ged Dipprey guides Dallas buyers through every step with 18+ years of local market experience.
Whether you are a first-time buyer or relocating to Dallas, the guide below walks you through the process, the financing basics, the costs to expect, and the terms you will hear along the way.
Dallas Home Buying — Quick Facts
- Minimum Down Payment: 3.5% (FHA) — 0% for VA loans
- Typical First-Time Buyer Down Payment: 6–7%
- Recommended Credit Score: 620 or higher
- Texas Option Fee: ~$200+ (buys your right to terminate)
- Typical Home Inspection: ~$450
- Dallas Median Home Price (2026): $415,000
- Average Days on Market: 28 days
The 8-Step Roadmap to Your New Dallas Home
- 1
Find an Agent
Choose an agent you trust and feel comfortable working with. Ged Dipprey represents Dallas buyers with 18+ years of local market knowledge, guiding you from your first showing through closing day.
- 2
Get Your Financials in Order
Speak with a proven lender to determine your budget and obtain a pre-approval. Ged is happy to recommend qualified Dallas lenders so you know exactly what you can afford before you start touring.
- 3
Search & Tour
Build your search criteria around your must-haves, nice-to-haves, and deal-breakers, then begin touring homes and attending open houses. Take photos as you go so you remember the layout and feel of each home.
- 4
Make an Offer
Once you find a home you love, Ged helps you craft a sensible, competitive offer and negotiates with the seller. Price is only one factor — option fee and earnest money, financing strength, and a flexible close date can all win the deal.
- 5
Inspection
Select an inspector to evaluate the home and review the findings with Ged within your option period. Your general inspection covers the major systems; pool, sprinkler, foundation, termite, and sewer are add-ons worth considering.
- 6
Appraisal & Loan Approval
Your lender orders a third-party appraisal to confirm the contract price matches the true market value. Underwriting then verifies your income, credit, and employment before granting the loan.
- 7
Final Steps
Review your lender appraisal, title commitment, survey, HOA rules, hazard insurance, and final settlement statement. Schedule movers and utilities, update your address, and plan to file your Texas homestead exemption.
- 8
Closing
Complete a final walk-through to confirm repairs are done, then sign at the closing table. Bring a government-issued photo ID and a cashier’s check or wire — then get your keys and celebrate.
Getting Your Finances Ready
Determine Your Budget
A common guideline is to stay within 3–5 times your annual income. Don't forget to factor in your down payment, property taxes, closing costs, and any renovation costs.
Down Payment
The minimum is 3.5% with FHA and 0% with VA loans. First-time buyers average 6–7%, while a 20% down payment helps you avoid monthly Private Mortgage Insurance (PMI).
Credit Score
Aim for 620 or above. Your lender will likely run a soft credit check before approving a mortgage and setting your rate — and the better your score, the lower your interest rate.
Pre-Approval
A pre-approval helps you set a realistic budget and shows sellers you are serious. It is not a guarantee — final approval happens during underwriting after your offer, so avoid major purchases or credit changes until you close.
What costs should a Dallas buyer expect?
Some buyer costs are paid out of pocket while you are under contract; others are credited back or paid at closing. While many costs can be negotiated with the seller, it pays to be financially prepared before you go under contract.
| Expense | Typical Amount | When You Pay |
|---|---|---|
| Option fee | $200+ | Out of pocket (non-refundable) |
| Home inspection | ~$450 | Out of pocket |
| Appraisal | $500+ | Out of pocket |
| Earnest money | 1%+ of sales price | Credited back at closing |
| Title closing fee | ~$500 | Paid at closing |
| Lender closing costs | Varies — ask your lender | Paid at closing |
| Down payment | 3.5%+ of sales price | Paid at closing |
Dallas Real Estate Terms Every Buyer Should Know
Real estate comes with its own vocabulary — option periods, earnest money, contingencies, homestead exemptions, and more. The full glossary defines every term you'll hear from your first offer through closing, in plain English, with the Texas-specific ones called out.
Understanding Your Title Commitment (Schedules A–D)
A title commitment discloses the title of record to the property, along with the liens, defects, and obligations that affect it. It is made up of four schedules:
Actual Facts
The who, what, where, and how much of the commitment — the buyer and record owner names, a legal description, the sales price, and the lender. It is a good idea to double-check this against your contract.
Buyer Notification
General and specific exceptions to the property, such as survey matters, taxes, easements, and setback lines that will not be covered by the title policy. Review and discuss any questions with your title company.
Clear to Close
Items that must be resolved to transfer title — such as a mortgage to be paid off, liens for home improvements, or unpaid taxes. All Schedule C items should be resolved before closing.
Disclosures
The ownership of the title company and all parties who share in the insurance premium, including underwriters, title agents, and attorneys.
This information is descriptive only and is not a substitute for legal advice. If you have concerns about any portion of your title commitment, please contact your attorney.
Dallas Home Buying — Frequently Asked Questions
How much down payment do I need to buy a home in Dallas?
The minimum down payment is 3.5% with an FHA loan, and VA loans allow for 0% down. First-time buyers put down 6–7% on average, and a 20% down payment lets you avoid the monthly Private Mortgage Insurance (PMI) most lenders charge.
What credit score do I need to buy a home?
A credit score of 620 or above is the most ideal range for approval. The better your score, the lower the interest rate you will typically receive. Your lender will usually perform a soft credit check before issuing a pre-approval.
What is an option period in Texas?
An option period is a Texas-specific negotiated number of days during which you can back out of the contract for any reason. You pay the seller an option fee, often $200 or more, in exchange, and all inspections and repairs should be negotiated within this window.
What is earnest money and is it refundable?
Earnest money is a good-faith deposit, typically 1% or more of the sales price, held in a trust or escrow account to show you are serious about the home. It is credited back to you at closing.
Which buyer costs are out of pocket versus credited at closing?
The option fee, home inspection (around $450), and appraisal ($500+) are out-of-pocket buyer expenses. Earnest money (1%+ of the sales price) is credited back to you at closing.
What do I need to bring to closing?
Bring a government-issued photo ID and a cashier’s check or wire for your funds. Closing is the final step where you sign, the seller is paid, and you receive the keys — and don’t forget to re-key the locks once the home is officially yours.
What is a Texas homestead exemption?
A homestead exemption is a Texas property-tax break on your primary residence that lowers the taxable value of your home. After closing, file for your homestead exemption to reduce your annual property taxes.
Buyer Guides
Every buyer's situation is different. Explore the guides below for advice tailored to where you are in the process.
First-Time Home Buyers
Down payment assistance programs, the Texas option period, what to inspect, and everything first-time buyers need before making an offer.
Relocating to Dallas
How to buy remotely, tour virtually, navigate Texas contracts, and close from out of state — a practical guide for relocation buyers.
Luxury Homes in Dallas
Highland Park, Preston Hollow, Park Cities. What to expect in a $1M+ transaction — pre-qualification, off-market access, and extended due diligence.
Ready to Start Your Dallas Home Search?
Ged Dipprey has 18+ years of experience helping Dallas buyers find the right home. Get personalized guidance from your first showing through closing day.