Buying property in Texas can be an exciting and rewarding experience. Can I get a yeehaw and an amen? Whether you are buying your first home or looking to upgrade, there are a few key things to keep in mind when beginning the process. Use these tips to ensure that you make a smart purchase and have a smooth experience.
Set a budget and stick to it: Before you start your search, you should know how much you can afford to spend on a home. Take into account your income, debt, and other expenses to determine how much you can realistically spend on a house. Once you have your budget in place, it will be easier to narrow down your search and avoid getting in over your head. It's smart to plan to spend around 25% or less of your monthly household income so you can easily maintain your payments. Lender's will allow you to go up to 33%, but it is all up to your lifestyle, income, debts, and goals. Stay between 20-25% of your monthly household income to avoid being "house broke."
Get pre-approved for a loan: Before you start looking for a house, it’s important to get pre-approved for a loan. Use a local lender that comes highly recommended and has a proven track record of closing on time and answering your questions quickly. This is one of the most important key players in the whole transaction that needs to have your back and treat you as a priority. The KEY to your house hunting strategy is the pre-approval. This will give you an idea of what you can afford and make your offers more competitive when negotiating with sellers. It's your stamp of credibility that backs up your financial status and says you're qualified to close on their property. It's like a resume when applying for jobs, it can be annoying to do, but it is mission critical. Start here.
Hire a real estate agent: A real estate agent can be a great asset when buying a home in Texas. We help you find the perfect property, negotiate with sellers, and provide valuable local insight throughout the process. We know how to get the terms you need, compete in the ever-changing market, and how to detect and back out of a bad deal if that should arise. There are so many contracts and real estate-specific jargon that we educate you on so you can make an informed decision. We also have vetted and experienced contacts for lending, inspections, repairs, remodeling, staging, and so on. For your buying journey, you get a full-time shopper looking for the perfect deal based on your must-haves, want-to-haves, and unique taste. It's a no-brainer! Although it is a negotiable term, the seller typically pays both the Buyer's Agent and the Seller's Agent out of the sale of the home at closing.
Get a home inspection: A home inspection can help protect you from buying a property that may have major issues or undetected defects that you couldn't see when first walking the home. It is always a good idea to hire a professional inspector to assess the condition of the property before you commit to a purchase. The inspection is done during your option period, if you negotiate one into your offer, which allows you to learn more about the condition of the home and ask for repairs from the seller during this period. In a balanced market, an option period can be anywhere between 5-7 days. In a competitive seller's market, option is often waived or dramatically shortened to 1-3 days. You need to move quickly and hire an inspector that will turn around a report quickly with digital assets for your Realtor® to use in their negotiations.
Research the area: Researching the neighborhood you plan to buy in is important. Make sure to look into the local schools, crime rate, and other resources and amenities before making a final decision. Your Realtor can provide sources and links for you to do your own research so you can form your own opinion. Make sure you have quick access to grocery stores you like, a gym, doctor, dentist, and vet you'd be happy to use going forward. You're moving your whole life there after all!
Following these tips can help you have a successful experience when buying a home in Texas. First-time home buyers are some of my favorite clients to work with. You're not just buying your first piece of property, you're also determining what neighbors you will live next to, the community that will shape your next phase of life, and where you will make memories with your family. It's incredibly important and I take your house hunt as serious as my own. Reach out to me to discuss any real estate related questions you may have!
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