First-Time Homebuyer Guide To Frisco

Buying your first home in Frisco can feel exciting and a little overwhelming. You’re juggling budgets, loan choices, MUD taxes, HOAs, and a Texas “option period” you may have never heard of. You want clear steps, local insight, and a plan you can trust. This guide gives you a simple roadmap tailored to Frisco, from pre-approval to keys-in-hand, plus tips for resale and new construction. Let’s dive in.

Step 1: Get pre-approved and set your budget

A strong start begins with a lender pre-approval, not just prequalification. Pre-approval reviews your income, assets, and credit so you know your target price and monthly payment range. It also makes your offer stronger when you find the right home.

Explore down payment options that fit your situation:

• Conventional loans may allow as little as 3% down for qualified first-time buyers.
• FHA loans typically start at 3.5% down for eligible borrowers.
• VA and USDA can offer zero-down options for those who qualify.
• State programs through the Texas Department of Housing and Community Affairs may provide down payment assistance based on income and other criteria.

Plan for closing costs, which commonly total about 2% to 5% of the purchase price. Ask your lender for a Loan Estimate early so you can budget for lender fees, title and escrow charges, and prepaid taxes and insurance.

Step 2: Plan for upfront cash

Beyond your down payment, you should set aside funds for these items:

• Earnest money: A good-faith deposit held by the title company or escrow agent named in the contract. It is typically applied to your closing costs or down payment at closing if you proceed under the contract terms.
• Option fee: A separate fee paid to the seller for a short, unrestricted right to terminate the contract during the “option period.” If you continue beyond the option period, the option fee is usually nonrefundable.
• Inspections: General home inspection plus any specialty inspections you choose.
• Appraisal: Ordered by your lender after you are under contract.
• Survey: Sometimes required by lenders and helpful for verifying boundaries.

Step 3: Start your Frisco home search

Decide whether you prefer a resale home or new construction. Resale homes may allow faster move-in and negotiation flexibility. New construction offers modern layouts and builder warranties, but contracts and timelines are different.

Keep local items top of mind:

• Frisco ISD attendance zones can change. Verify the current zoning for any address before you offer.
• HOAs are common in master-planned communities. Rules, amenities, and fees vary. You will want to review the HOA documents during your option period.
• Municipal Utility Districts (MUDs) are more common in newer areas and can add a separate tax line to your bill. MUD rates and bond obligations vary by subdivision.

For new neighborhoods, confirm where utilities, roads, and amenities stand in the development schedule and whether future phases may affect your timeline or tax profile.

Step 4: Make a smart offer in Texas

When you are ready to write, your contract will reference Texas Real Estate Commission forms and norms. Here are the key moving parts:

• Earnest money is submitted after acceptance and held by the title company or escrow agent. Make sure you receive a receipt.
• Option period is a short window when you can inspect the home and terminate for any reason. The length, often 3 to 10 days, and the option fee are negotiable.
• Contingencies can include inspection, financing, and survey or title review.

What to negotiate beyond price

• Option period length and option fee structure
• Closing date and lease-back (if needed)
• Seller credits toward closing costs
• Appliances or repair allowances
• For new builds, upgrades and builder incentives

Step 5: Use your option period wisely

Move fast as soon as you are under contract:

• Schedule your general inspection promptly and line up any specialty pros for roof, foundation, HVAC, or pest as needed.
• Review the HOA resale packet for fees, rules, budgets, and any pending special assessments.
• Confirm MUD status and estimated tax impact if applicable.
• Read the title commitment and ask questions about easements or exceptions.
• Verify survey boundaries or order a new one if required.
• Check floodplain status using official maps and ask about drainage features.
• Ask for documentation on any major renovations and whether permits were obtained.

If issues arise, you can negotiate repairs or credits, or you may choose to terminate within the option period.

Step 6: Appraisal and underwriting

Your lender will order the appraisal after you go under contract. In many cases, the report is completed within about 7 to 14 days, although timing can vary. After appraisal, underwriting reviews your file and issues conditions to clear. Many buyers move from conditional approval to clear-to-close in roughly 2 to 4 weeks once all documents are in.

If the appraisal comes in lower than the contract price, you and the seller can consider price adjustments, concessions, or a plan to bring additional cash if that fits your goals. Your agent and lender will help you weigh options.

Step 7: Close and settle in

Texas uses title companies for escrow and title insurance. Title insurance is a one-time premium collected at closing and protects the owner and the lender under the policy terms. Before signing, do a final walk-through to confirm the home’s condition.

After closing:

• Transfer utilities and set up service accounts.
• File your homestead exemption with the Collin County Appraisal District if applicable.
• Save HOA contact details, gate codes, and amenity rules.
• Organize builder warranties or third-party warranties and your inspection reports.

Buying new construction in Frisco

Builder contracts differ from standard resale forms. They may set specific timelines, limit certain concessions, and define upgrade pricing early in the process. A buyer’s agent familiar with local builders can help you interpret contract terms, confirm incentive structures, and align them with your loan.

Expect milestone inspections, such as pre-drywall and final, and ask whether third-party inspections are permitted. Construction timelines vary. Quick-move-in homes can close in a timeframe similar to resale, while to-be-built homes may take 3 to 6 months or longer depending on schedules and permits. Review MUD disclosures, warranty documents, and how amenities will be delivered by phase.

Property taxes, MUDs, and HOAs

Property taxes in Collin County combine several jurisdictions, which can include county, city, school district, college, and possibly a MUD. Rates change each year, so confirm the current tax rate and recent history for any specific property with official county records.

For neighborhoods with a MUD, the district finances infrastructure like water, sewer, and roads, then collects an additional tax to repay bonds. This can affect your monthly payment and long-term costs. Ask for disclosure documents and verify the most recent rates.

HOA dues vary by community. Fees can be monthly, quarterly, or annual, and special assessments may be used for major projects. Review covenants, architectural rules, rental policies, pet rules, amenity access, transfer fees, budgets, and meeting minutes as part of your due diligence.

Typical timelines in Frisco

• Pre-approval: same day to a few days once you submit documents.
• Home search: varies by needs and inventory, often weeks to months.
• Option period for inspections: commonly 3 to 10 days, depending on market dynamics.
• Appraisal: often 7 to 14 days after order.
• Contract to close on resale: about 30 to 45 days with standard financing.
• New construction: quick-move-in homes can close in 30 to 60 days; to-be-built homes often run 3 to 6 months or longer.

Quick checklist to get started

1. Get fully pre-approved and confirm your cash needed for earnest money, option fee, inspections, appraisal, and closing costs.
2. Hire a local buyer’s agent who knows Frisco, HOA norms, and new construction.
3. Focus your search with attention to Frisco ISD zoning, HOA rules, and MUD status.
4. When offering, decide on earnest money amount, option period length, and plan for HOA and MUD disclosures.
5. During the option period, complete inspections, review HOA and title documents, verify survey, and check floodplain and permits.
6. Work with your lender to clear underwriting conditions and verify closing logistics with the title company.
7. After closing, transfer utilities, file your homestead exemption if eligible, and save warranty and HOA onboarding materials.

Ready to map your plan around your budget, timeline, and favorite Frisco neighborhoods? Reach out for a personal game plan and on-the-ground guidance from search to closing. Your Move. Our Mission. Connect with Afshan Moosa to get started.

FAQs

What is the option period in a Texas home purchase?

• It is a short window you buy with an option fee that lets you inspect and terminate for any reason. If you proceed past the option period, the option fee is usually nonrefundable.

What is the difference between earnest money and option fee?

• Earnest money is a good-faith deposit held by the title company and applied at closing if you proceed. The option fee is paid to the seller for your unrestricted right to terminate during the option period.

How much earnest money and option fee should I expect in Frisco?

• There is no fixed rule. Amounts depend on price point and market conditions. In competitive markets, buyers may raise earnest money or adjust the option period length.

How long does closing usually take in Frisco?

• Many resale transactions close in about 30 to 45 days after contract acceptance, assuming standard financing. New builds can take several months depending on construction status.

Should I waive the option period to win a home?

• Waiving the option period can strengthen an offer but adds risk since you lose an unrestricted right to terminate after inspections. Consider a shorter option period as a middle ground.

Are MUDs and HOA fees common in Frisco?

• Many master-planned areas have HOAs, and some newer subdivisions use MUDs that add a separate tax. Review HOA documents and MUD disclosures to understand rules, fees, and tax impact before you commit.