If you are thinking about buying a home in Texas, there are some steps that can help make the process run smoothly, and it’s important to understand how the buying process works before you proceed.

Find a Real Estate Agent

The first thing you will probably want to do is find a licensed real estate agent.  You can start your search online or by asking friends, family and/or neighbors about any Texas REALTOR® who might make a good fit for you.  You may want to speak to several agents to find one who specializes in the buying process and who is familiar with the area in which you are looking.  A licensed real estate agent will guide you through every step of the buying process.

Prioritize Your Desires For Your Home

Once you’ve found a real estate agent that fits your needs, you’ll need to decide on what specifics you’ll want included in your home.  Things you may want to consider include location, price range, taxing jurisdiction, school district, commute time to work, and proximity to shopping, hospitals and major highways.   You may not be able to find a home that meets your exact wants and needs in your given price range, so it is important that you prioritize your list to find the best match possible.

Pre-Qualify For A Loan

After you’ve narrowed your requirements down, you will probably want to pre-qualify for a loan before you make an offer on a house.  Dealing with a mortgage broker or bank before you make an offer on a house is a smart step, because then you will have a much better idea as to how much home you can afford.  This will also be the time you will decide how much down payment you have the funds for and how much you will actually qualify for.  You’ll need to make sure that you have all of your financial documents for the last couple of years which outline your income, assets and any outstanding credit you may have.

Find Your Home and Make An Offer

Once you pre-qualify, you are ready to find that perfect home.  You and your real estate agent will probably look at many homes before deciding on one.  Once you find one you like, you will make an offer on the home.  Your real estate agent will sit down with you and fill out all of the standard state required paperwork in order to make an offer.  The seller has the right to accept, reject or make a counteroffer.  If there is a counteroffer, it may take some time to negotiate a fair deal.  If your offer is accepted, the paperwork will become a binding contract and it will be one of the most important documents you sign in the process since it outlines the terms and conditions of the transaction.

Have An Inspection

After your offer is accepted you will want to get the home inspected by a qualified inspector.  This is also a good time to have a termite inspection performed as well.  You may want to ask you real estate agent to request that the seller include a one year residential service contract as part of the deal.   This is often done with an existing home to ensure that certain items will be repaired if there are any issues with the home after you move in.

Secure Financing

Next, you will secure a loan to finance the purchase of the home.  If you pre-qualified for a loan before your search began, much of the paperwork may already be done.  If not, you will need to provide income, asset and credit information to complete the loan application and lock a rate. If you put down less than 20% you also will be required to pay PMI, Private Mortgage Insurance, which protects the lender if you default on the loan.

Check  the Title

The contract will then be sent to a title company and the title will be investigated to make sure there are no legal issues with your property.  An implied easement or an existing lien may be issues that could surface.  In Texas, according to lawyers.com liens on a piece of property may include the following:

• Abstract of judgment
• County assessments for road improvements
• County litter lien
• County weed and sanitary lien
• Deed of trust or vendors lien
• Federal estate tax lien
• Federal income tax lien
• Federal judgment lien
• Federal lien securing a judgment imposing a criminal fine
• Homeowners’ association lien for assessments
• Mechanic’s lien by affidavit
• Mechanic’s lien contract
• Miscellaneous state tax liens
• Municipal assessments for street improvements
• Municipal assessments for water/sewer systems
• Municipal demolition lien
• Municipal utility services lien
• Municipal weed and sanitary lien
• Solid waste facility remedial lien
• State inheritance taxes
• Surface coal mining reclamation
• Unemployment taxes
• Water district standby fees
• Water district taxes
  (Source: http://research.lawyers.com/Texas/Buying-a-House-in-Texas.html)

Having the title researched is an important step and protects you.  The title company will notify you of any issue with the property and will issue you title insurance to further protect your rights as a homeowner.

Go to the Closing

Once the title clears and the financing is secured, you’ll be informed of the closing costs for which you will be responsible. The money you will need to close the deal will include your down payment, inspection costs, title insurance, and any other fees associated with the closing of the home.  You’ll schedule a time with the title company to sign all of the paperwork, bring in closing costs and finalize the loan.  The seller will also sign papers to transfer the rights and validate the information they disclosed about the home.

The last step is to pick up your keys, move in and enjoy your new home!

If you are looking for a new home and need excellent buyer representation, check out Save On A New Home to start your search today.