Dreaming of Owning a Home in Fort Worth? Read This Before You Buy.

The housing market isn’t just heating up—it’s on fire. And if you’re not financially prepared, you could get burned.

In today’s competitive market, knowing how to manage your money, build your credit, and choose the right mortgage could be the difference between moving in or missing out.

That’s where financial literacy comes in—especially during Financial Literacy Month. Understanding the ins and outs of homeownership gives you the edge you need to shop smarter, avoid costly mistakes, and make confident choices.

Ready to turn your homebuying dreams into reality? Start with this guide designed for Fort Worth buyers just like you.

Why Homebuying Knowledge is Power in Today’s Market

Fort Worth’s housing market is hot. With demand outpacing supply, prices climbing, and interest rates fluctuating, being financially prepared isn’t optional—it’s necessary. Without the right knowledge, buyers can quickly find themselves over budget, underprepared, or stuck with loan terms they don’t fully understand.

Financial literacy bridges that gap. It empowers buyers to:

  • Understand what they can truly afford.

  • Strengthen their credit for better loan terms.

  • Navigate mortgage options confidently.

  • Plan for the full financial picture—not just the listing price.

Step 1: Get Credit-Score Savvy

A credit score isn’t just a number—it’s a key that unlocks your mortgage rate. The higher the score, the lower the interest rate (and the more affordable your monthly payment).

Tips to Boost Your Credit Before Buying:

  • Pay down revolving debt like credit cards.

  • Make payments on time—every time.

  • Avoid opening new credit accounts unless absolutely necessary.

  • Check your credit report for errors and dispute any inaccuracies.

A difference of even 50 points in your credit score could translate to thousands saved over the life of a loan.

Step 2: Build a Budget That Goes Beyond the Mortgage

Homeownership isn't just about affording the monthly payment—it’s about affording everything that comes with it.

Budget Categories to Consider:

  • Down Payment: Typically 3–20% of the home’s price, depending on loan type.

  • Closing Costs: Usually 2–5% of the loan amount. These cover appraisals, inspections, title fees, and more.

  • Property Taxes & Insurance: These vary by neighborhood and should be included in your estimated monthly housing cost.

  • Repairs & Maintenance: Budget 1–3% of your home’s value annually for upkeep and unexpected repairs.

Tip: Use online calculators to estimate your full monthly housing cost—not just principal and interest.

Step 3: Know Your Mortgage Options

Not all loans are created equal. Choosing the right one depends on your credit profile, income, and long-term goals.

Common Mortgage Types:

  • Conventional Loans: Great for buyers with strong credit and a solid down payment.

  • FHA Loans: Designed for first-time buyers with lower credit scores or smaller down payments.

  • VA Loans: Available to eligible veterans and active-duty service members—often with no down payment.

  • Adjustable-Rate Mortgages (ARMs): Start with a lower rate that adjusts over time. Best for short-term owners who plan to sell or refinance before the rate increases.

Before selecting a loan, speak with a trusted lender or financial advisor to walk through the pros and cons of each. 

Step 4: Prepare for Pre-Approval Like a Pro

Getting pre-approved is more than a formality—it shows sellers you’re serious and gives you a clear buying limit.

What You’ll Need:

  • Pay stubs and W-2s (or tax returns if self-employed)

  • Proof of assets (bank statements, investment accounts)

  • Employment verification

  • Good credit history

Bonus: A pre-approval also helps you shop smarter by narrowing your search to homes you can comfortably afford.

Step 5: Don’t Skip Local Resources

Fort Worth is full of resources to help first-time and middle-income buyers.

  • The Housing Channel offers free financial literacy classes, credit counseling, and homebuyer education.

  • Local credit unions, like Fort Worth City Credit Union, provide individual loan guidance for members and financial education tailored to the community.

  • Down Payment Assistance Programs may be available depending on your income, location, and home type.

Take advantage of these programs—many are underused simply because people don’t know they exist.

Step 6: Beware of Hidden Costs and Common Pitfalls

First-time buyers often underestimate how much homeownership really costs—or overestimate what they can afford.

Watch Out For:

  • Overbidding in a hot market, only to struggle with payments later.

  • Skipping the inspection, which can lead to expensive surprises.

  • Ignoring your long-term budget—buying more house than you can grow into comfortably.

A great deal on a house is only a deal if it works for your budget today and tomorrow.

Financial Literacy = Financial Confidence

Buying a home is one of the biggest financial decisions most people will ever make. But it doesn’t have to be intimidating. With a little financial literacy, the process becomes less of a gamble and more of a smart, strategic move.

Whether you're planning to buy in six months or just getting your feet wet, now is the time to sharpen your financial knowledge, build your credit, and get familiar with the numbers. Fort Worth City Credit Union is here to help members navigate their path to homeownership—with tools, guidance, and resources designed to make every step clearer.

Ready to learn more? Connect with a financial counselor, attend a homebuying workshop, or explore your mortgage options at fwccu.org. Financial literacy starts here—and your future home is closer than you think.

Fort Worth City Credit Union