Buying property in Texas from out of state

Things to know about Texas before buying a property

So before you start searching for your perfect Texas property, here's everything you need to know about Texas:

• Texas has become a tech hub, and many Fortune 500 companies are based in this state. Thus you can count on plenty of job opportunities in various sectors.
• Depending on where you choose to settle in Texas, the cost of living is reasonable. For instance, the cost of living in Austin is 3% lower than the national average.
• One of the best things about Texas is that there's no personal income tax or state income tax.
• The number of Texas residents is only increasing. So if you're looking to purchase a property and rent it, you can be sure it won't sit empty.

Things to know about buying property in Texas from out of state

Who is involved in the process?

First of all, you should know who you'll generally work with when buying a property in Texas. Your real estate agent is the most important person for you in this process. Therefore, don't rush and hire the first agent you find online. Instead, do your research and interview a few agents before you decide.

Even though your real estate agent at home can help you look for properties in Texas, it's always best to choose someone with local market experience. For example, if you've decided to buy a property in San Antonio, hire an experienced San Antonio real estate agent.

Another important professional in your home buying journey is a home inspector. So make sure to hire someone reputable who'll let you know if the property you want to buy is worth the investment. Also, you'll cooperate with an insurance broker, too. Keep in mind that your insurance will probably be more expensive and trickier if you're buying an investment property.

At the final stage of your purchase, you'll have to be in touch with a title company. They'll hold the money in an escrow account until you and the owner sign the necessary paperwork. The title company will also provide you with the title policy.

Know your finances

Before even doing a quick search on Texas homes, it's essential to know how much you can afford. If you start looking at homes over your budget, you can only get frustrated and disappointed once you realize you can't afford them.

When it comes to financing your property, you can either pay for it in cash or get a mortgage through a lending institution. So don't simply go to your local bank and ask for a mortgage. Instead, do your research as your local bank won't have as good rates as outside lenders most of the time.

The good idea is to get pre-approved for a mortgage. That will signal sellers that you're a serious buyer, which will give you at least a slight advantage over other buyers. Once you make an offer, you'll have two checks to write - earnest money (typically 1% of the purchase price) and an option check. The option check is usually a few hundred dollars but gives you the option to back out of the purchase within the agreed number of days.

House hunting in Texas

Once you've sorted the financing part, it's time to start looking for your Texas property. As you're shopping from afar, the best way to start is to do a quick property search online. This way, you'll get an insight into what type of properties are available within your budget.

The good idea is to schedule several video tours before deciding which properties you want to see in person.

Also, don't settle for the first neighborhood that seems nice. Instead, do some research depending on your needs and check out homes in different areas. For instance, if you have a big family, you'll want to live in a safe neighborhood close to good schools. On the other hand, if you plan to rent your property, you might want it to be close to a university or similar, depending on your target renters.

This is why hiring a local real estate agent is essential. As they have experience in those areas, they'll have valuable first-hand information to share. But even though nowadays it's effortless to purchase a property remotely, you should still choose several properties you like and schedule to see them in person.