Buying Your First Home in Dallas Texas | Step-by-Step Guide
Texas is a fast-growing US state famous for its BBQ, live music, and the strong job market. Every year, hundreds and thousands of young professionals move to Texas to find their dream jobs.
The best thing about Texas is that the house mortgage rates here are comparatively lower than other US states, such as California and Florida.
If you live somewhere else and are planning to move to Texas in 2022, or you’re already a Texas resident looking to invest in your own home, you have landed on the right page.
In this post, we will walk you through the steps of buying your first home in Texas. Excited? We’re too. Let’s start…
Step 1 – Assess your financial situation
Before you start searching for a Dallas mortgage company or a property listing, make sure you have a clear idea of your financial situation.
Determine the amount of money you can put down initially. Also, keep monthly mortgage payments in mind.
It is also essential to understand that homeownership costs are way more than your monthly mortgage payments.
Buying a new home comes with several additional costs – HOA fees, property taxes, and insurance are to name a few.
Carefully check your credit score and make efforts to improve it before you move forward to buy a new home.
Step 2 – Do your research
Buying a new home is a big decision. Also, it involves a lot of money. That is why it is critical to do your research at every step of the home buying process. Whether it is about choosing a real estate agent or a mortgage company, make sure you invest your time and resources in picking the best of the best options available out there.
Because your real estate agent will be your main ally throughout the process, it’s essential to have someone you trust on board. Look for someone who can:
- help connect you with reliable lawyers and lenders
- provide insights into the current real estate market in Dallas, Texas
- help you negotiate a profitable deal
- help you find the best neighborhood/location for your new home
Step 3 – Get pre-approved for a home mortgage
This step is critical. Remember, most sellers won’t show you their property unless you hold a preapproval letter.
Getting pre-approved means you’re serious and financially ready to invest in a new home.
Choosing the right mortgage company in Dallas isn’t an easy feat either. Jot down a list of feasible options and compare interest rates.
Step 4 – Choose the right neighborhood
Because properties in Texas are expensive, many homebuyers consider affordable neighborhoods in Dallas, Texas, to find a profitable deal.
If you’re following our advice step by step, you must have a clear idea of your budget now. Based on your research and financial situation, you can start searching for affordable neighborhoods surrounding Texas. Most people prefer Oak Lawn, Preston Hollow, and Lake Highlands as these neighborhoods are affordable and people-friendly.
Once you have a list of neighborhoods that fit your financial criteria ready, you’ll have to assess how well each area fulfills your unique family needs and preferences.
For example, if you have kids, you’ll need a place with schools and parks. If you love socializing, you’ll have to search for a place with many restaurants and community clubs.
Step 5 – Submit an offer
Once you have selected your dream house, it’s time to make an offer.
Speaking of Texas…
Properties usually stay on the market for up to 55 days. But some homes get snatched up more quickly than others. Write a perfect offer letter based on the current market conditions and convince the seller to accept it.
Step 6 – Get a home inspection
When buying a home in Texas, the last thing you want is flood damage, broken flooring, and damaged roofing. In order to avoid these unpleasant surprises, you need to get your chosen property inspected for any unseen or potential issues.
Step 7 – Get an appraisal
Just like you, your lender also wants to ensure the property you’re investing in is worth its price.
An appraiser confirms that the deal in progress is feasible and profitable for the buyer, seller, and lender.
Step 8 – Final walk-through/closing
We’re down to the final step now…
Before you seal a deal, it is a good idea to take a final walkthrough of your property to ensure everything is up to the mark.
Carefully examine ceilings, roofs, HVAC systems, and appliances.
Run the water to check leaks. Also, ensure you have the working keys for all doors (front/garage/indoors).
Hire an experienced real estate attorney to help you walk through the closing process. Don’t forget to review every document you sign during the closing. Feel free to ask your attorney or lawyer to clarify things for you if you’re not familiar with any term or clause.