Texas Home Buying Process

The TEXAS HOME BUYING PROCESS is comprised of several key steps not unlike the procedures in other states. Since purchasing a home is such a serious financial undertaking that impacts you and your family’s lifestyle, it’s important that you understand the steps involved.

For your convenience we have outlined each step so that you will know what to expect as we navigate with you through your home purchase process. Look it over and should you have any questions, we are here to answer them all for you.

 

Step One – Employ a REALTOR®
1

Having a professional advisor that is experienced in the local market and the industry is extremely important! As an Accredited Buyers Representative, I can assist you through the entire home buying process. I’ll also encourage you to use a Buyer Representation Agreement to put our agreement in writing.

 

Step Two – Decide how you’ll finance your home
Young handsome businessman in mortgage concept

Determining if you will utilize FHA, VA, USDA or Conventional financing This a critical step in the home buying process! Nothing can happen without this!  Speak with a lender to determine how much house you can afford and the right home loan program for you. Obtain a pre-approval letter from the lender. The lender will also give you an estimate of the amount of funds you will need to close on your home at this stage. This letter will be required for you to submit your offer to purchase.

Step Three – The Home Search
3

 

This is a process of elimination. Start by deciding which neighborhoods you want to live in and whether you want a new or existing home. We will work together to make sure these homes fit within your financial range based on your lender’s pre-approved.  I will make all the arrangements and schedule all showings to take place at your 

 

Step Four – Your Offer to Purchase
4

Once you find the right home, we will review market conditions and make our offer based on such as comparable homes sold in the immediate area of your selection. I will draft and explain all the paperwork necessary to present a competitive offer to purchase your selected home. The negotiation may go back and forth a few times between parties before final acceptance. I will be your primary advocate and an active participant in the negations acting only in your best interest.

 

Step Five – Offer is accepted – contract executed – escrow opens -option period starts.
5

After final acceptance of the terms by both parties, the next phase is to go under contract. This is when you provide an “Earnest Money” deposit to the title company, typically 1% of the sales price to open escrow. You’ll also need to provide an “Option Check” to the seller, typically $100-200 which gives you an option to cancel and time and to inspect the home. We have 3 business days to deliver Earnest Money and 3 calendar days to deliver Option Money. These are mandatory time lines and they cannot be exceeded.

 

Step Six…   Inspections, Appraisal, Title and Hazard Insurance
6

Now begins the negotiated option period, usually 5-7 days. Inspections are performed to ensure the property doesn’t have any major mechanical and structural problems. Any required repairs will be negotiated with the seller and all repairs or concessions will be completed prior to closing. Once the inspection is complete, your lender will order an appraisal to make sure the property has a value equal or greater than the sales price. This is also when you should arrange for homeowner’s hazard insurance for your new home. The Title Insurance company will also provide a Commitment for Title Insurance which confirms the home is free of any liens, encumbrances and encroachments.

 

Step Seven…  Go to the Closing Table
7

This is the fun part and the most anticipated step in the home buying process!!! Bring a certified check or order a wire transfer for your required down payment and closing cost that were previously disclosed to you by your lender in step   picture ID to the closing at the title company. After you sign and your closing documents are notarized, the closing agent will notify the lender and they will release funds to the seller. Typically, you will receive keys the same day. Once this is complete, the home is yours!