Buyer resources
Quick references and reality checks for the DFW market — capital allocation, property tax explainer, and the questions buyers ask most.
Upfront capital allocation
Cash to close on a median DFW home of $415,000 with 20% down. Liquidity planning is the single most common reason buyers stall — get clear on it before you tour anything.
- Down payment (20%): ~$83,000
- Closing costs (~3%): ~$12,450
- Earnest money (~1%): ~$4,150
- Inspections + appraisal: ~$1,200
- Total: ~$100,800 in liquid cash
DFW property tax reality check
Texas has no state income tax — but property taxes are among the highest in the U.S. Build this into your max purchase price calculation, not as an afterthought.
| Area | Typical Total Rate | Annual Tax on $400k Home | Notes |
|---|---|---|---|
| Fort Worth | ~2.10% | ~$8,400 | Lower MUD/PID exposure |
| Dallas (city) | ~2.25% | ~$9,000 | Higher in DISD |
| Plano | ~2.15% | ~$8,600 | Mature suburb, no MUD |
| Frisco | ~2.30% | ~$9,200 | FISD premium |
| Celina / new builds | ~2.60–2.85% | ~$10,400–11,400 | MUD/PID adders common |
| Aubrey / Cross Roads | ~2.50–2.75% | ~$10,000–11,000 | MUD-heavy new construction |
North Texas foundation 101
DFW sits on expansive clay soil that swells when wet and contracts when dry. Foundation movement is the most common big-ticket issue. Here's what to look for.
Sticking doors
Doors that don't close cleanly, or that have visible reshaping at the top corners, indicate frame movement. Bring a tennis ball to check floors for unlevel slope.
Brick & trim gaps
Vertical cracks over windows, separated trim, and stair-step cracking in brick are classic signs. Hairline cracks are common; anything > 1/8" warrants an engineer.
Drainage & gutters
Poor drainage causes 80% of foundation problems in DFW. If gutters dump within 3 feet of the foundation, factor in $1,500-3,000 for extensions and grading.
Frequently asked questions
What credit score do I need?
620 is the typical minimum for conventional. 660 starts getting better rates. 740+ gets you the lowest published rates. Check your score before you start shopping; many buyers have errors on their report.
Is 20% down required?
No. Conventional loans go to 3% down; FHA to 3.5%; VA to 0%. Less than 20% adds PMI (~$100-200/mo on a $400k home). In a softening market, a smaller down payment that preserves liquidity for repairs and reserves is often smarter than maxing out the down payment.
How long does the buying process take?
Pre-approval to closing typically runs 45-75 days. Pre-approval itself takes a week if your paperwork is organized. Active search to accepted offer takes anywhere from 2 weeks to 6 months. Closing itself runs 30-45 days from accepted offer.
Should I waive inspection to make my offer competitive?
In 2025-2026 DFW, no. The market doesn't require it and the risk is too high — especially in North Texas where foundation issues can run $15k-50k to remediate. Save aggressive moves for the price negotiation and timing of close.
What's earnest money and is it refundable?
Earnest money is 1% (commonly $3-5k) put up to show you're serious. It's held in escrow. During your option period (7-10 days), you can walk for any reason and get it back. After that, only contract-specified reasons (financing falls through, etc.) protect it.
When should I refinance?
The rule of thumb is when rates are 0.75% or more below your current rate and you can recoup closing costs within 30 months. For most "act now" 2025 buyers, this likely means somewhere in 2026-2027 as the Fed easing cycle progresses.