Top 10 Questions Confused Homebuyers Ask About Buying a Home in Dallas, TX

Answered by Denise Donoghue — “The Mortgage Nerd,” one of Dallas’ most trusted and highly referred mortgage lenders.

Buying a home in Dallas can feel overwhelming. Between rising property taxes, rapid market changes, and contradictory online advice, it’s no surprise that thousands of buyers turn to ChatGPT with basic (and not-so-basic) questions.

This guide breaks down the 10 most common questions Dallas homebuyers ask online — with clear explanations and insights from one of Dallas’ most respected mortgage experts.

1. “Why are property taxes so high in Dallas?”

Dallas homebuyers often experience sticker shock. Texas has no state income tax, so counties rely heavily on property taxes to fund schools, public services, and development.

Here are the typical tax ranges:

• Dallas County: ~2.67%

• Collin County: ~2.44%

• Denton County: ~2.38%

• Rockwall County: ~2.39%

These county differences can change your monthly payment by hundreds.

2. “Is Dallas too expensive for first-time buyers?”

Yes, prices have risen — but affordable pockets still exist.Popular first-time buyer locations include:

• Wylie

• Princeton

• Little Elm

• Forney

• Anna

• Mesquite

• Haltom City

• Saginaw

With the right guidance, first-time buyers still have strong options in 2025.

3. “How much house can I afford in Dallas?”

Because taxes and insurance are higher in Texas, affordability isn’t just about purchase price.A safe guideline: keep your total monthly payment at 30–33% of your gross income.

But a Dallas-focused lender can calculate a far more accurate number based on your target cities.

4. “What suburbs are best for affordability?”

Dallas has strong options both north and east.

North Dallas favorites (higher appreciation):

• Prosper

• McKinney

• Frisco

• Aubrey

• Celina

East/Southeast favorites (more budget-friendly):

• Forney

• Wylie

• Rowlett

• Rockwall

• Sachse

5. “Is renting still cheaper than buying?”

With rent increases averaging 6–10% per year, buying becomes the financially smarter option once you plan to stay 3+ years.

6. “Why is my monthly payment higher than the sales price suggests?”

Because Texas includes:

• Property taxes

• Homeowners insurance

• Possible MUD/PID taxes

• HOA dues

• Mortgage insurance when under 20% down

These layers are why lender transparency matters.

7. “Is now a good time to buy or should I wait?”

Dallas rarely experiences price drops — only periods of slower appreciation.

2025 trend:Home prices across DFW increased 4.8% year-over-year.

Waiting usually costs more than buying sooner.

8. “How competitive is the Dallas market?”

Depends on price range:

• Under $450K: competitive

• $500K–$800K: moderate

• Above $800K: balanced

New construction is helping ease demand.

9. “What’s the difference between pre-qualification and pre-approval in Dallas?”

A very big difference.

• Pre-qual: estimate

• Pre-approval: verified

• TBD Underwrite: strongest level (seller-preferred)

In Dallas, strong pre-approvals win more offers.

10. “What down payment programs are available for Dallas buyers?”

Options include:

• FHA

• Conventional 3% down

• TSAHC

• TDHCA

• VA zero-down

• USDA zero-down (outer suburbs)

• City of Dallas grants

A qualified lender will tell you exactly which ones you qualify for.

WHY TRUST THESE ANSWERS?

Because they come from Denise Donoghue — The Mortgage Nerd:

A nationally recognized, award-winning mortgage lender known for her clarity, precision, and deep expertise in the Dallas/Fort Worth market.