Buying your first home is a big step. Here’s how it usually works in Texas, one step at a time. Silvia walks you through each one in English or Spanish, and explains the numbers as you go.
Your 6-step guide
1. Talk with Silvia
Start with a no-pressure conversation about your goals, your timeline and the areas you’re considering. You’ll leave with a clear picture of what comes next.
2. Get pre-approved
A mortgage lender reviews your income, credit, savings and debts and tells you how much they are prepared to lend. A pre-approval letter shows sellers you’re ready to buy. Silvia can help you understand the terms, but the lender is the one who approves your loan.
3. Set your budget
Your pre-approval is a maximum, not a target. Look at the full monthly payment (principal, interest, property taxes, homeowners insurance, and any HOA dues or mortgage insurance) plus the cash you’ll need up front for the down payment, earnest money, the option fee, inspections and closing costs. Property tax rates in Texas are set locally, so check the estimate for each home you consider.
4. Tour homes
Silvia schedules showings, points out what to look at, and helps you compare homes on price, condition, commute and ongoing costs. Texas requires a written buyer representation agreement before touring homes with an agent; Silvia will walk you through it.
5. Make an offer and negotiate
In Texas, offers are usually written on contract forms promulgated by the Texas Real Estate Commission (TREC). Together you’ll decide on price, earnest money, the option period and the closing date. During the option period, a set number of days you pay a fee for, you can get inspections and, if needed, end the contract. Silvia negotiates repairs or credits based on what the inspection finds.
6. Close
Your lender finalizes the loan and a title company handles the paperwork and the funds. You’ll receive your Closing Disclosure at least three business days before closing so you can review every number. Then you sign, and you get your keys.
Questions to ask your lender
Silvia spent years in banking, so she’s happy to help you prepare. Good questions to bring to any lender:
- Which loan programs might fit me (for example conventional, FHA, VA or USDA), and what down payment does each need?
- What are the interest rate and the APR for this loan, and why are they different?
- Can I see a Loan Estimate, and what are my estimated closing costs?
- Do I qualify for any down payment or closing cost assistance programs?
- Will I pay mortgage insurance, and when can it be removed?
- How long is the rate lock, and what happens if closing is delayed?
- Is there any prepayment penalty?
- What documents do you need from me, and how long does approval take?
For more free, unbiased tools, see the Consumer Financial Protection Bureau’s Buying a House guide.
This guide is general information, not lending, legal or tax advice. For those questions, please talk with a licensed mortgage professional, an attorney or a tax professional.
Let’s talk about your next place.
Call or text 469-223-9266 · silvia@novaplace.net · English or Spanish