The Process of Buying a House in Texas
Once you decide to buy a new home, the excitement of the closing day can't come fast enough. A home purchase is probably one of the most important purchases of a lifetime. The process of buying a house in Texas gives both buyers and sellers time to make thought-out decisions. Additionally, it ensures people avoid impulse buying and possibly neglecting certain parts of the procedure. So, if you are a first-time home-buyer in Texas, here's what you can expect. |
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.
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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.
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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.
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![]() You will need to go through extensive financial analysis before buying a house in Texas. |
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.
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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:
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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 |
Once you settle on a property, use your realtor's knowledge to decide how much you should offer. Your real estate agent will help you get the offer in writing with all the other necessary details. |
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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:
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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. |
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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.
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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.
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Close the deal |
The deal's closing is usually held in the title company and can last 1-3 hours. Once they make sure everything's in order, you will get the keys to your new home. Congratulations! |
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. |
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