More than half a million Americans moved to Texas in 2019. Many businesses are heading to Texas to set up shop, while families love raising kids there. If you’re considering buying a house in Texas, keep reading.
In this guide, you’ll learn what it’s like to live in Texas and where to buy a home. Research areas that will provide you with what you need.
Learn more by checking out the tips below on how to find the perfect home.
Will You Buy a House?
You’ll want to consider your budget before buying a home in Texas. Assess your current budget and how much you can afford on living costs. Will you stay in Texas for the foreseeable future?
The average price of a house in Texas will range between $250,000 and $350,000. The price increased in the last year because of the hot housing market.
You’ll need to cover appraisal fees, broker fees, closing costs, and your down payment. Expect to add 2-5 percent of your loan’s total to the full price.
Look at Getting Pre-Approved
You will apply and provide personal information during the pre-approval process.
The lender will verify this information. They’ll call your boss and check your work history. They will also need to authenticate your assets. They might contact TransUnion, Experian, or Equifax to assess your credit.
Look for a House
There are a few ways to search for your home. You will usually begin online.
Look up different neighborhoods. Some people will hire a local real estate agent in Texas to help them throughout the process.
People looking for a home with particular features should write a list. Give this list to your real estate agent.
The home’s condition and potential renovations will also factor into the price. While shopping around in Texas, expect to make a few offers.
Get Ready to Offer
After choosing the house, you’ll submit an offer with the help of your real estate agent. You’ll pick a price and provide a money deposit. You’ll also need to give the seller a deadline.
If the seller isn’t open to negotiating, you could walk away. There are many houses in Texas to choose from, so don’t rush the process.
You’ll Want an Inspection and Appraisal
An inspector will look for appliance, structural, roofing, or electrical issues.
You can get the list of issues and potential drawbacks. Some buyers ask the seller to fix these problems before the sale. You could also ask for a price amendment due to the number of repairs needed.
Your home appraisal is essential too. They will need to get done before you receive a mortgage loan.
This appraisal will assess the value of your property. A buyer should complete a walkthrough of the home.
Find out about recent floods or storm damage. Get the right insurance by checking out this flood insurance option.
Closing
At the closing meeting, a buyer will bring their ID, documents, and proof of funds. You’ll read over the disclosure and verify the loan estimate and settlement statement.
You do this all before you sign the mortgage deed and note.
30-Day Escrow
During the terms of a contract, the seller and buyer will negotiate and agree. Now, the contract is executed, and the escrow process will begin. This is the duration until closing and depends on the state.
In Texas, 30 days is typical, but it could go longer or shorter, depending on your circumstances.
You Need a Seller Disclosure Report
Home sellers must submit a disclosure on the condition of the house. Things like fires, water damage, or house items need to be disclosed. This is standard across most states in the country.
You Don’t Need an Attorney
Some states will rule that a buyer and seller need a lawyer to represent them during closing. In Texas, you don’t need an attorney. You will put more responsibility on your agent, title company, and lender.
This way, you sign authentic legal documents.
Get the Offer in Writing
Your offer to buy real estate needs to get submitted in writing. This is critical in Texas. Consider buying a house in the winter months of Texas.
Most people sell in the spring or summer, but people who put their house on the market in the winter need to sell fast.
Your offer should include any seller concessions. Some people will ask the seller to cover some closing costs. You can provide a higher purchase price and include these costs in your mortgage.
Will you request repair credits? Repair credits are an option if you don’t want to ask the seller to pay and make the repairs.
Some purchase agreements have inspection contingencies. These contingencies will let you change or back out of the offer if major problems are revealed.
If you’re fairly certain about the house and the seller showed you a recent inspection, you can forgo this contingency.
Finally, some buyers will provide a letter to the seller. Many sellers have some emotional attachment or connection to their home. A letter will help show how you picture your life in this new Texan home.
Buying a House in Texas
Did you find this guide helpful? Buying a house in Texas will go a lot smoother if you work with a reputable real estate agent. Find a local agent in Texas who will help you navigate this process.
You should also determine your housing budget and your family’s needs. Would you like to raise a family or move to Texas for business?
Need more real estate tips like this guide? Our blog has many resources for you.
