Homebuying Tips for High-Income Texans

by Lyndsey Johnson

You’ve worked hard, built a successful career, and now you’re ready to purchase your first home in Texas. Whether you’re in tech, finance, healthcare, law, or oil and gas, earning a six-figure salary opens doors — including the door to homeownership.But even high-income professionals face challenges when navigating the home buying process for the first time. If you’re buying in Dallas, Southlake, Frisco, Prosper, or any other competitive Texas market, this guide is for you.Let’s break down everything you need to know to make a smart, strategic purchase — without costly mistakes.

1. Get Pre-Approved (Not Just Pre-Qualified)

Pre-qualification gives you a general estimate. Pre-approval means a lender has reviewed your income, credit, and debt — and issued a conditional commitment.

It tells sellers you’re serious
It helps you understand exactly how much home you can afford
It allows you to act fast in competitive markets like Frisco or Southlake

At Emmly Financial, we offer fast, Texas-based pre-approvals tailored to high-income borrowers.

2. Know Your Debt-to-Income Ratio (DTI)

Even with a strong income, lenders will look at how much of your monthly income is tied up in existing debt — including:

Car loans
Credit cards
Student loans
Personal loans

Pro tip: Aim for a DTI under 43% to qualify for most conventional loans. The lower, the better for jumbo loan scenarios.

3. Don't Skip the Down Payment Planning

Earning six figures doesn’t mean you have to put down 20% — but doing so can help:

Eliminate private mortgage insurance (PMI)
Lower your monthly payments
Strengthen your offer in a competitive market

If you’re purchasing a home over $726,200 (as many do in Southlake or Prosper), you may need a jumbo loan — which often requires 10–20% down.

4. Understand What Price Range Makes Sense

Just because you can afford a $1M home doesn’t mean you should max out your budget. Ask yourself:

How long do I plan to stay in this home?
Do I want flexibility for future investments, travel, or kids?
How comfortable am I with my monthly payment — even in an emergency?

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5. Think Long-Term: Location, Schools, and Resale

Even if you don’t have kids now, school districts like Carroll ISD (Southlake) and Frisco ISD help boost home values. Look for areas with:

Low property tax rates
Steady job growth nearby
Strong resale value and community development

6. Factor in ALL the Costs — Not Just Your Mortgage

You’ll also need to budget for:

Property taxes (especially in Texas!)
Homeowners insurance
HOA fees (common in new DFW communities)
Maintenance and repairs
Closing costs (2–5% of home price)

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7. Choose a Lender Who Understands High-Income Borrowers

Not all lenders are familiar with bonus-based income, RSUs, or variable commission structures. At Emmly Financial, we specialize in helping Texas professionals:

Structure income in the best light for underwriting
Explore jumbo loan or conventional loan options
Close quickly in high-demand markets
Match mortgage strategies to career goals

8. Don’t Let Your Lifestyle Outpace Your Homeownership Goals

Yes, you earn a strong income. But if you’re spending heavily on travel, vehicles, or subscriptions, your DTI could still disqualify you from a top-tier mortgage product.Be strategic: Homeownership builds long-term wealth. Temporary lifestyle changes can lead to bigger future payoffs.

Ready to Buy Your First Home in Texas?

Whether you're buying a modern townhome in Frisco, a luxury home in Southlake, or your first single-family property in Prosper, Emmly Financial is here to guide you.