The Horizontal Type Mask Tool creates creates type-shaped selections.
In the Toolbox, select the Horizontal Type Mask
Tool.
Set on the Options bar font options:
family (style), size and anti-aliasing
method*.
Click on the image; Photoshop automatically adds a
kind of quick mask**.
Type.
While you are typing, the cursor looks like this ,
so you can adjust typed text position without changing the tool.
When ready, select any other tool to return to standard editing
mode.
Now you can edit selected area.
*More text options are available in the Character (pull-down menu Window > Character) and Paragraph (Window > Paragraph) palettes. **Selections and quick masks are discussed in the 2nd chapter of this video-course