Before You Sign: A Central Texas Homebuyer's Checklist of Questions

Signing a mortgage is the largest financial commitment most people ever make, and first-time buyers often discover the fine print only after the ink is dry. The antidote is simple: ask better questions before you sign. If you're shopping for your first home in Central Texas — whether that's a house in Hico, a place outside Stephenville, or acreage somewhere in between — start with these seven.

1. Is a Fixed-Rate or Adjustable-Rate Loan Right for Me?

Most first-time buyers should understand both options before choosing. A fixed-rate loan locks your interest rate and principal-and-interest payment for the life of the loan, which makes budgeting predictable. An adjustable-rate mortgage (ARM) typically starts with a lower rate that later adjusts with the market.

The right answer depends on how long you expect to stay in the home. Planning to put down roots for twenty years? Predictability usually wins. Expecting to relocate in five? An ARM might make sense — but only if you fully understand when and how the rate can change. Ask your lender to walk through the worst-case payment, not just the best one.

2. What Will My Property Taxes Actually Be?

This question matters more in rural Texas than many buyers expect. Property taxes here are set by multiple taxing entities — the county, the school district, and often a water district or emergency services district — and rates vary considerably from one county line to the next.

Two other Texas-specific wrinkles: first, if the home has an agricultural exemption and you don't intend to keep the ag use, the property may be subject to rollback taxes. Second, if you're buying land with a new build, taxes on an unfinished structure can look very different from taxes on a completed home. Ask for a realistic estimate based on the specific property, not a round number.

3. Do I Qualify for Down Payment Assistance?

Many first-time buyers assume they need 20% down. In reality, a variety of programs — including Texas Department of Housing and Community Affairs (TDHCA) programs, FHA loans with down payments as low as 3.5%, and USDA rural development loans that can require no down payment at all — are designed to help. Much of Hamilton County and the surrounding area qualifies for USDA rural housing programs, a fact that surprises many buyers. Ask which programs you qualify for, and ask early, before you've fallen in love with a house.

4. What Will My Total Monthly Payment Include?

Your mortgage payment is more than principal and interest. It typically includes property taxes, homeowner's insurance, and possibly private mortgage insurance (PMI) if your down payment is under 20%. In rural areas, you may also need to budget for a well test, septic inspection, or propane service. Get a complete estimate — taxes, insurance, escrow, and all — so there are no surprises when the first payment comes due.

5. Are There Restrictions on This Property?

Rural and small-town Texas properties can come with strings attached. Deed restrictions may limit outbuildings, livestock, or fencing. Properties in a flood zone will require flood insurance, which is separate from standard homeowner's coverage. If the home sits on acreage, ask about easements — utility, pipeline, or shared driveway — that could affect how you use the land. A local lender who knows the area can flag these issues before they become closing-day problems.

6. How Long Will Closing Take, and What Could Delay It?

Ask for a realistic timeline and a list of common snags: appraisal scheduling in a rural market, title work on older properties, survey questions on land parcels. A lender with local underwriting can often close faster than a distant institution, which matters when you're negotiating with a seller who has other interested buyers.

7. Who Answers When I Have a Question?

This may be the most important question of all. Will you be calling a loan officer who knows your file, or a 1-800 number with your application number handy? Buying your first home generates a hundred small questions, and you deserve a person, not a portal.

Talk It Through, in Plain English

At First National Bank of Hico, our mortgage team believes fine print should come with a translator. We sit down with first-time buyers, explain the terms line by line, and answer the questions on this list — and the ones that aren't on it. If you're ready to buy your first home in Central Texas, stop by and let's talk. No pressure, no jargon, just neighbors helping neighbors make a sound decision.