The Process of Buying a House in Texas

The timeline of buying a house in Texas

Finding the right home is a remarkable experience. However, getting there can sometimes be challenging, so it's essential you know what you can expect. Some of the most common parts people struggle with are finding the right property, paperwork, and understanding the whole process.

Luckily, we've made the step-by-step guide for Texas home shopping. By following these steps, you'll get closer to the moment where you can arrange your interstate relocation and an easy transfer from Florida to Texas and enjoy settling into your new home.

Examine your financial health

Before looking at property listings, it would be wise to take a good look at your finances and decide whether you are ready to start the home buying process.

First of all, you will need to determine the budget for housing costs every month. It's worth keeping in mind that there are additional costs to homeownership besides your monthly mortgage payment. These include property taxes, homeowner's insurance, potential repairs, Homeownership Association fees (HOA), etc.

Get pre-approved for a mortgage

The pre-approval estimates the amount of money you can get the kind of house you can afford.

The majority of lenders follow the 28/36 rule when determining whether to approve the mortgage. This rule implies that the total housing costs mustn't exceed 28% of your gross monthly income and that total monthly debt payments shouldn't surpass 36% of your gross monthly income.

Another standard metric mortgage lenders use is the calculation of your debt-to-income ratio (DTI). The lower DTI you have, the higher the chances of getting approved. If you want to figure out your monthly debt, remember to include the following expenses:

• Student Loans
• Credit Cards
• Personal Loans
• Alimony or Child Support
• Estimate of your mortgage

Finally, there's the down payment - the portion of the money you pay for your new home out of your pocket. Down payments are typically around 20% of the total purchase price.

Luckily, Texas-specific programs, like My first Texas Home loan program, could help you with the down payment, taxes, and closing costs.

Also, remember that it's always best to speak with multiple mortgage lenders to ensure you get the best type of mortgage for your situation and the best interest rate.

Find a local realtor when buying a house in Texas

The real estate agent you choose will be your main ally during this whole process. Therefore, having an excellent realtor by your side is essential if you want to ensure a successful home purchase.

Apart from finding and showing you the houses that match your requirements, they will help you with numerous other tasks:

• Refer you to other services, like lawyers and lenders;
• Provide you with valuable market information;
• Help you negotiate the best deal;
• Make sure the house is worth the asking price;
• Locate the best neighborhoods and school districts;
• Prepare offers and counteroffers.

Having a trustworthy realtor by your side ensures a less stressful and more successful process.

Start viewing different homes

Even though it can be time-consuming, house hunting is the most thrilling part, so be sure to enjoy it!

You can also take advantage of technology and view online listings. Take a good look at the photos and videos of the houses to form a first impression. You will get a clearer picture at an open home or an in-person tour.

Make sure not to rush anything. Instead, get some honest advice from your realtor and consider all the pros and cons of the house you like.
 

Make an offer

Having an experienced realtor is crucial when making an offer.

Negotiate when buying a house in Texas

Again, the experience and knowledge of your agent are of immense help in negotiations. They know that offering the highest price isn't always the best strategy. They will manage to find the best compromise for your situation to sweeten the deal.

Some of the options are:

1. SELLER CONCESSIONS - closing costs are included in the mortgage, and the seller gets a higher price;
2. REPAIR CREDITS - the buyer has control over the repairs before closing the deal;
3. NO INSPECTION CONTINGENCIES - faster closing;
4. LETTER TO THE SELLER - makes your offer stand out.

Finalize the terms of sale and prep the contract

When buying a house in Texas, finalizing the terms and conditions usually takes 24-72 hours. The finalization process must include the price, financing amounts, closing dates, inspection periods, known repairs, etc.

You will surely get excited once your offer gets accepted. However, it's worth taking some time to check whether all the terms are transparent and fair to avoid overlooking something that might bother you or cost you later.

After determining the terms and conditions, it's time to prepare a legal agreement that documents everything sale-wise. Both the buyer and seller have obligations, deadlines, and penalties if something goes wrong.

Your team consists of you, your realtor, mortgage broker, home inspector, and title company, so you need to ensure everyone's on the same page when creating a contract representing you and your interests.

Make sure everyone on your team agrees with the terms in the contract.

Once you've prepared the contract, its timeline begins. The timeline includes the deadline for a home inspection, applying for financing, deposits, appraisals, closing, etc.

Organize a home inspection

The last thing you want is a flood or a faulty electrical system once you move into your new house. The best way to avoid potential problems with the place you are buying is to get a home inspection and an appraisal.

Inspections give you peace of mind regarding the condition of the property. The inspector will pay close attention and let you know if something needs to be repaired, like the roof, foundation, plumbing, electrical, or HVAC system.

The appraisal is there to verify the contract price is fair for the buyer, the seller, and the lender. A licensed appraiser will do a walk-through, note the appearance, amenities, and overall property condition. Additionally, they will look at what similar houses were sold for and finally print out the report with their observations and recommendations.

Close the deal

Final thoughts on buying a house in Texas

And there it is, the home buying process timeline. We understand it's a lengthy and somewhat complicated process. However, buying a house in Texas is probably one of the most significant investments and achievements in one's life. You want to do everything in your power to get it right. As you can see, having the right agent is half the job. We hope our guide gave you an idea of what to expect and prepare for.