The Championship side – who lost out to Rangers in the national showpiece six years ago – are second favourites for Saturday’s game as they look to secure the trophy for a third time in their 139-year history.
He said: “Inverness have had a fantastic season. They’ve not finished third in the Premiership for nothing. It’s because they have good players and good organisation and a great manager.
“We’re underdogs, there’s no question about that. But, once you are in a final, you want to go and win it. We’re not just happy to be there.
“In a one-off situation, we’ve seen many times, the underdogs can come out on top. We have to cope with whatever Inverness throw at us but also get the ball down and play because we like to pass it and I’m convinced we’ll create chances.
“I think my biggest job on the day will be making sure we’re calm and handle the occasion.”
Falkirk have not played a competive fixture since their last league game against Hibernian on May 2 but Houston beleives that could work in his side’s favour.
He added: “A bit of freshness might do us good. The fitness levels are very good, but you do miss competitive games.
“Last week, we had games against young Burnley and Swansea sides. That was the best we could get at this particular time but if you can’t get the players up for a cup final then there’s no chance of ever getting them up.
“They’re excited and nerves will come into it. The Inverness players will be the exact same way and it’s who handles the occasion best.”
Watch the Scottish Cup final live on Sky Sports 3HD on Saturday, 30 May from 2.00pm