The monthly payment is $1,577. This figure is based on borrowing $247,000 at a 6.6% interest rate with a 30-year fixed mortgage, calculated for principal and interest only. This assumes a 5% down payment based on the median home price in San Antonio, but the actual monthly payment will be higher when property taxes and insurance are added.

According to Redfin, the median sales price in San Antonio as of May for the last three months was $260,000, which is a 2.6% decrease from the previous year. Zillow's average home value is also showing a similar trend at $251,065. Among major Texas cities, it has a relatively low entry barrier.

To break down the loan structure, an FHA loan can start with a 3.5% down payment if your credit score is 580 or higher, and if your score is between 500 and 579, a 10% down payment is required. Conventional loans can be available from 3% down if you are a first-time homebuyer or have an area median income of 80% or less, but typically, a 5% down payment is more common. If you put down less than 20%, PMI will be added to your monthly payment, and this cost disappears if you put down 20% or more.

Applying the Texas effective property tax rate of 1.6% to a $260,000 home results in an annual property tax of about $4,160, which breaks down to $347 per month added to the principal and interest. Combining this property tax with the previously calculated principal and interest of $1,577 brings the total monthly payment to about $1,924, and adding insurance and PMI will increase this burden slightly.

Pre-approval is the process that turns this calculation into actual numbers. By submitting your income, debt, and credit score to a lender, you will receive a precise loan limit based on your DTI ratio. Without this documentation, sellers often do not take your offer seriously.

If you are a first-time homebuyer, it's worth checking out the My First Texas Home program from the Texas Department of Housing and Community Affairs. It offers up to 5% in down payment assistance in the form of grants or second liens, with conditions of a credit score of 620 or higher and completion of HUD-approved homebuyer education. Receiving this assistance will reduce your initial financial burden as calculated earlier.

Closing costs typically range from 2% to 5% of the loan amount, so separate preparation is necessary. San Antonio is home to a large military base, so if you are active duty or a veteran, it's worth considering VA loans that require no down payment. However, eligibility requirements and loan limits vary based on individual circumstances, so it's best to check directly with your lender.

After your offer is accepted, the process continues with an appraisal, home inspection, and interest rate lock-in. The previously calculated monthly payment of $1,924 reflects only principal and interest, so it's important to confirm the final number, including insurance and PMI if necessary, during the pre-approval stage.

Since interest rates and fees vary by lender, it's advantageous to obtain quotes from multiple sources for comparison. Remember that DTI ratios have different allowable limits among institutions, but the total of existing debt and new mortgage principal and interest should not exceed a certain percentage of your income for approval.

Typically, it takes about one to one and a half months from offer acceptance to closing. During this time, document review, appraisal, and home inspection will proceed in order, so it's advisable to confirm the previously calculated monthly payment with your loan officer just before closing. Double-checking these numbers before signing the contract will reduce surprises at the closing table.

Refer to GreatSchools ratings for school districts, but keep in mind that boundaries change frequently, so check the assigned school directly before purchasing. Tax and loan conditions may vary by county. This is not investment or legal advice, and consulting a professional before finalizing any contracts is recommended.