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Buying a Home in Texas - How to Buy a Home in Texas
by Brandon Cornett
Buying a home in Texas is similar to home buying elsewhere in the country. It requires some careful research, some financial preparation, and a solid game plan.
You will have to do the research and preparation on your own, but I can help you with the game plan. Here is a guide to buying a home in Texas to steer you along the way. Feel free to print it out and use it as a checklist if you'd like!
Buying a Home in Texas - One Step at a Time
1. Process Review -- Start by studying the home buying process in advance. Learn the various steps to buying a home. And learn some of the home-buying lingo while you're at it. You'll have a smoother home buying experience if you "speak the language."
2. Credit Review -- Take a good look at your financial situation before attempting to buy a home in Texas. Start by getting a copy of your credit report and reviewing it for errors. Fix credit errors quickly, if you find them. If you suffer from a low credit score, work on improving your score as much as possible before buying a home in Texas.
3. Home Buying Budget -- Use a mortgage calculator to determine how much of a mortgage you can comfortably afford. Create a budget to find out how much you have left over each month after groceries, car payment, luxuries, etc. Set your home-buying budget at a level that still allows you to put money into savings after you've paid the mortgage.
4. Save Your Cash -- Before buying a home in Texas it's important to start saving up some cash. Before qualifying you for a loan, Texas mortgage lenders will want to see that you have some cash reserves on hand. You'll also need the extra cash for any unexpected fees or costs that might arise during the home buying process.
5. Hire an Agent -- If this is your first time buying a home in Texas you should have professional help. A Texas real estate agent can guide you through the process and help you avoid costly mistakes. Ask a friend or family member who has bought a home in Texas recently if they can recommend a real estate agent to you.
6. Needs vs. Wants -- Create a list of the things you need in a home versus the things you want in a home. Write it in a checklist format, and then print copies to take with you when house hunting. During each visit, write down the home's address on the home buying checklist when filling out the information. This will help you tie the checklist back to the house later on (especially important when you look at a lot of houses).
7. Validate the Price -- Buying a home in Texas requires validation at each step of the way. One of the things you should validate is the seller's asking price. Remember, it's called an "asking price" for a reason. It's not set in stone. Compare the asking price of a home to recent sales in the area. This is where your Texas real estate agent will prove useful. He or she can provide you with a comparative market analysis (CMA) to validate the asking price.
8. Take Pictures -- If you don't have a digital camera, you should borrow or buy one before buying a home in Texas. Digital cameras are great for house hunting, because you can get a lot of pictures on them. Taking digital photos is a great way to record the details of each home for later review. Just remember to keep all of the photos organized so you can remember which home that living room belongs to, etc.
9. Making the Offer -- Make your offer based on thorough research, not emotion. Consider the type of market you're in and plan accordingly. For example, in a hot seller's market, the seller has more leverage and will be more inclined to turn down low offers. Whereas in a buyer's market, the buyer has more leverage.
10. Mortgage Shopping -- Research the different mortgage types so you can find one that best suits you. Shop around for the best interest rate as well. Texas mortgage lenders will offer you different rates and terms based on your credit history. So shop around.
11. Get a Home Inspection -- Anyone buying a home in Texas should have a proper home inspection before buying. An inspection by a licensed home inspector will usually cost between $300 and $600, which is a small price to pay for peace of mind. The home inspector will check the home's structure and major systems like plumbing and heating to ensure proper function. This is something you want!
12. Other Inspections -- A termite inspection is generally a good idea as well, especially in homes with wood siding. Depending on where in Texas you are buying a home a radon inspection might be necessary as well.
13. Prepare for Closing -- The real estate settlement (or closing) process requires a lot of paperwork and payments. You can prepare yourself by researching the closing process, continuing to save extra cash, and keeping in touch with your settlement / escrow agent.
The Texas Home Buying Journey
Obviously, this article is just an overview of the Texas home buying process. You can learn more by following the various links spread throughout this article. I also recommend you read at least one book on buying real estate. Buying a home in Texas is a major financial undertaking. The more research and preparation you do, the better off you will be.
