Buying A House For The First Time In Texas

Requirements for Buying a Home in Texas


There are several steps you can take to start buying a home in Texas.


Dive deeper into your finances.  The first step in buying a home is determining the price of the home you can afford.  The best way to do this is by looking at how much money you set aside for the down payment (more on that below) versus how much you can spend on the monthly payment.  It’s a good idea to start by assessing your finances and checking your creditworthiness, especially if you’re buying a home for the first time.  These are important first steps to help you establish a baseline about what you can afford and which neighborhoods are right for you.


If you can, be proactive and reduce or even better pay your monthly credit card payment.  It enhances your credit score and makes your financial profile as a borrower more attractive while buying a home.


Get pre-approved for a mortgage loan.  If you think you know your budget, it’s time to talk to a mortgage banker about how much you can actually afford, after they’ll take a closer look at your financial situation and give you information about interest rates.

Payment. You should also ask them about specific programs in Texas that can help you with the down payment, closing costs, and taxes.  Believe it or not, to help you budget and show the seller that you have the funds to complete the transaction as quickly as possible, pay off your mortgage.  Approval early is important.


Find a local real estate agent in Texas.

Not sure where to stay in the city?  A local real estate agent can be an invaluable resource when it comes to providing you with the information you need about various neighborhoods.  Plus, they can help you rate the home you’re looking for to ensure you find a home that’s a good fit for the market.  Be sure to ask for references and then ask them about their process for finding a good personality.


Start looking for Homes.  Now comes the fun part!  With budget in mind, you can do a more realistic search for homes in the neighborhood of your choice.  Your agent can give you all the information you need about services, schools, etc.  Many properties offer online video tours so you can see the house from the comfort of your couch.


Now that you have your pre-approval letter, it’s time to call a real estate agent to begin your home search.  You should learn more about your individual needs, budget and lifestyle and discuss this with your agent so they can assist you in your search.  When choosing a real estate agent, make sure they know the current real estate trends in your local market and know the neighborhoods that fit your criteria and budget.


Finding the right neighborhood is important.  You have to consider your family, your lifestyle and the country you are visiting.  Ask your real estate agent about local schools, crime rates, and community facilities.  These details will help you focus on the neighborhood and home that is right for you.


Once you have found a home that best suits your needs, you should talk to your real estate agent to make an offer.  But before doing this you have to keep some things in mind.  It’s a good idea to first learn about property taxes for that particular county and the closing costs associated with buying a home in Texas.


It is important to consider the property tax rate as it will be included in your overall budget.  On average, homeowners in Texas pay about $2,775 in property taxes each year.

Keep in mind that Texas has some of the highest property taxes in the United States when it comes to state taxes, but residents enjoy one of the highest sales tax rates, low, and no state income taxes.


Closing costs are another important aspect of the home buying process.  These costs include processing fees, lender fees, title and escrow fees, etc.  The exact number may vary depending on the cost of the home and the specific fees and services associated with purchasing the home.  In a real estate transaction, some closing costs are usually borne by the buyer.  So talk to your mortgage broker about what to expect.


There are several ways to make up for these additional costs when buying a home.  According to NerdWallet, paying closing costs out of your own pocket as a one-time expense is the most cost-effective method.  However, your lender may include them on your loan and include the cost in your monthly mortgage payment.  Note, however, that these costs will require you to pay more interest over the life of the loan.


Make a proposal for your dream home.  Once you have decided on the right property, your agent will help you prepare a written proposal, which will include all the important details like the amount of your offer to any eventualities.


Request a property inspection and appraisal.  An official test by an independent third party is always important.  That’s because even the most perfect home can have something hidden and costly to fix, such as a roof that needs replacing or a foundation that is collecting water.  An inspection gives you peace of mind that the home is in good condition and/or gives you the opportunity to negotiate a price for any necessary repairs.  A home inspection ensures that the buyer has all the details regarding the current condition of the property, including foundation, structure, electrical, plumbing, etc.  Your real estate agent can usually recommend a trusted home inspector.


The home inspector will examine these areas of the home and provide you and your agent with a detailed report.  You can accept the home as it is, ask the seller to update or repair the item, or negotiate a price to offset the cost of necessary repairs.


Set the deposit amount and complete your transaction.  Texas is what is known as a “trust state,” which means you have to put money in before the deal can officially close.  An escrow account keeps money and documents safe with third parties during the completion of a transaction.


The option period begins as soon as you have been awarded the contract for a house and signed the purchase contract.  During this period, the Buyer may terminate the contract without assigning any reason and return his deposit.