Buying your first home in San Antonio can feel overwhelming, especially when you’re trying to understand financing, neighborhoods, inspections, offers and closing all at once. This first-time homebuyer guide walks you through the home-buying process step by step so you know what to expect before you begin your search.
So, what are the steps you need to take when buying your first home in San Antonio?
Generally, the first-time homebuying process includes setting a budget, getting preapproved for financing, choosing an experienced real estate agent, deciding where you want to live, searching for homes, making an offer, completing inspections and financing requirements, reviewing your closing documents and completing the final walkthrough and closing. The process can vary depending on your financing, the property and the terms negotiated in your contract, but understanding these major steps before you begin can make the experience much easier to navigate.
How Much House Can I Afford as a First-Time Buyer?
How much home you can afford depends on more than the amount a lender is willing to approve. Consider your monthly mortgage payment along with property taxes, homeowners insurance, HOA fees, maintenance and other financial obligations when setting a comfortable budget.
- Clarify your homeownership goals and priorities.
- Assess your financial situation and determine a realistic budget.
- Consider pre-approval for a mortgage to understand your borrowing capacity.
How Much Money Do I Need to Buy My First Home?
First-time homebuyers do not necessarily need a 20% down payment. The amount needed to purchase a home depends on the loan program, down payment, closing costs and other transaction expenses, and some buyers may qualify for programs that help reduce their upfront costs.
- Conventional Loans: Some conventional loan programs allow qualified buyers to purchase a home with a down payment well below 20%. The amount required can vary based on the loan program, borrower qualifications, and property. Private mortgage insurance may also be required when putting less than 20% down.
- FHA Loans: FHA loans are government-insured mortgages that can offer lower down payment requirements and more flexible credit guidelines than some conventional financing options. Buyers must meet FHA and lender requirements, and mortgage insurance is generally required.
- VA Loans: Eligible veterans, active-duty service members and certain surviving spouses may be able to purchase a home with no down payment through a VA-backed home loan. VA loans also do not require monthly private mortgage insurance, although other costs and eligibility requirements may apply.
- Buyer Assistance Programs: Some buyers may qualify for programs that can help with expenses such as down payments, closing costs or other costs associated with purchasing a home. The Schrader Group’s Buyer Assistance Program can help buyers explore available options based on their individual situation.
In addition to the down payment, first-time buyers should plan for other potential expenses such as closing costs, inspections, appraisal-related costs, homeowners insurance and funds they may need after moving into the home. Understanding the complete cost of buying a home can help you create a more realistic budget before beginning your search.
How Do I Choose a Real Estate Agent?
Choosing the right real estate agent is especially important for first-time homebuyers who may be unfamiliar with the buying process. Look for an experienced agent who understands the local San Antonio market, communicates clearly and can guide you through each step, from your initial home search and offer through inspections, negotiations and closing. The Schrader Group has served San Antonio-area homebuyers and sellers since 1982, giving our team decades of experience helping buyers navigate the local real estate market.
- Select a reputable real estate agent with local market expertise.
- Seek recommendations or read reviews to ensure a reliable partnership.
- Collaborate with your agent to outline your preferences and priorities.
How Do I Choose Where to Live in San Antonio?
Choosing where to live is about finding the right balance between your budget, commute and the lifestyle you want. First-time buyers in the San Antonio area have plenty of options, from established neighborhoods in the city to newer communities in Schertz, Cibolo, Converse, and New Braunfels. When comparing areas, consider property taxes, school districts, HOA costs, nearby amenities, new construction, and proximity to work.
Not sure where to start? Watch our Moving to San Antonio: Neighborhoods, Home Prices & Area Guide for a closer look at different areas throughout San Antonio and surrounding communities.
- Identify the areas that fit your budget, commute and homeownership goals.
- Research factors that matter to you, such as schools, amenities, property taxes, HOA fees and planned development.
- Explore different neighborhoods and communities in person to get a better sense of the location, surroundings and daily commute.
What Should I Look for When Touring a Home?
When touring a home, look beyond the finishes and décor and consider how well the property fits your needs, budget and everyday lifestyle. Pay attention to the home’s layout, overall condition, storage, natural light, outdoor space and any features that may require additional maintenance or expense. Your real estate agent can also help you identify questions to ask about the property and point out details that may be important to consider before deciding whether to make an offer.
- Create a list of must-haves, nice-to-haves and deal-breakers before beginning your home search.
- Look at the home’s layout, condition and major features rather than focusing only on cosmetic updates.
- Consider the property’s location, commute, surrounding area and potential ongoing costs.
- Take notes and photos during showings so you can more easily compare homes after touring several properties.
What Happens When I Make an Offer on a House?
When you find a home you want to buy, your real estate agent can help you evaluate the property. Together, you can prepare an offer based on the asking price, comparable sales, market conditions, and your individual goals. An offer involves more than just the purchase price and can include terms related to financing, closing costs, the closing date, inspections and other negotiated items. The seller may accept your offer, reject it or respond with a counteroffer, which is why having an experienced agent guide you through the negotiation process is important.
- Work with your real estate agent to determine an offer price and terms that align with the property, market conditions and your goals.
- Review the complete offer carefully, including the purchase price, financing, closing timeline and other negotiated terms.
- Be prepared for the seller to accept, reject or counter your offer.
- Understand the protections, deadlines and obligations included in your contract before moving forward.
What’s the Difference Between a Home Inspection and an Appraisal?
A home inspection and an appraisal serve two different purposes during the homebuying process. A home inspection evaluates the property’s condition and can help identify potential issues with the home, while an appraisal provides an independent opinion of the property’s value. If you’re financing your purchase, your lender will generally require an appraisal, while a home inspection is typically something the buyer chooses to have performed as part of evaluating the property.
- Hire a qualified home inspector to evaluate the home’s condition and identify potential concerns.
- Review the inspection report with your real estate agent and determine whether any issues need to be addressed according to the terms and timelines of your contract.
- If you’re financing the purchase, your lender will generally order an appraisal to obtain an independent opinion of the property’s value.
- Understand that an appraisal does not replace a home inspection. The appraisal primarily addresses value, while the inspection provides a more detailed evaluation of the home’s condition.
What Happens Between an Accepted Offer and Closing?
Once your offer is accepted, the transaction moves toward closing and there are several important steps and deadlines to complete along the way. You’ll continue working with your real estate agent, lender, title company and other professionals as your financing is finalized, the property goes through inspections and appraisal when applicable, title work is completed and the requirements of the contract are addressed. Staying on top of requests and deadlines during this stage can help keep the transaction moving toward closing.
- Provide your lender with any additional financial documents or information needed to complete the mortgage and underwriting process.
- Complete inspections, appraisal and other property-related requirements within the applicable timelines.
- Arrange for homeowners insurance and complete any remaining lender requirements before closing.
- Review important documents and stay aware of contract deadlines with the help of your real estate agent.
- Complete a final walkthrough before closing to confirm the property’s condition and that any agreed-upon items have been addressed.
What Should I Expect on Closing Day?
Closing day is the final stage of the homebuying process, when you’ll review and sign the documents needed to complete your purchase. Before closing, you’ll receive important information about your final loan terms and costs, and your real estate agent, lender and title company can help you understand what you need to bring and what to expect. Once the required documents are signed and the transaction is completed and funded, you’ll officially become the owner of your new home.
- Review your Closing Disclosure before closing so you understand your final loan terms, monthly payment and closing costs.
- Complete your final walkthrough before closing to confirm the home’s condition and any agreed-upon items.
- Confirm with the title company how much money you’ll need to bring to closing and the approved method for providing those funds. Always verify wiring instructions directly with the title company before sending funds, and never rely solely on wiring instructions received by email.
- Bring the required identification and sign the documents needed to complete the purchase.
- Once the transaction has funded and you’re authorized to take possession, it’s time to get the keys to your new home.
What Should I Do After Buying My First Home?
After closing, a few final steps can make the transition to homeownership easier. Beyond moving in, make sure utilities are transferred, important documents are stored safely, and you have a plan for home maintenance.
- Coordinate with movers and transfer utilities and other services into your name.
- Keep your closing documents, inspection report, warranties and other important home records in a safe place.
- Update your address with the appropriate accounts and organizations.
- Apply for a Texas homestead exemption if the home is your primary residence and you qualify. A homestead exemption can reduce your home’s taxable value and may help lower your property tax bill. Watch our How to Save on Texas Property Taxes | Homestead & Protests video to learn how the exemption works, who may qualify and how to file through your county appraisal district.
- Create a maintenance plan and begin budgeting for future repairs and improvements.
- Take some time to settle in and enjoy your new home!
First-Time Home Buyer Mistakes to Avoid
Knowing the steps to buying your first home is important. Knowing what not to do can be just as valuable though. Watch our First-Time Home Buyer Mistakes to Avoid video for tips on budgeting, preapproval, financing and buyer assistance options. We also cover new construction and common mistakes to avoid during the homebuying process.
Buying your first home is a major milestone, and you don’t have to navigate the process alone. The Schrader Group has served San Antonio-area homebuyers and sellers since 1982. Our full-service team can help guide you through each stage of the homebuying process. From finding the right home to negotiating an offer and navigating closing, we are here for you.