Moving into your own home is an American Dream. It’s symbolic of your financial independence and the start of your adult life. However, the home buying process in Texas may be rife with obstacles that can turn that dream into a nightmare. 

Knowing the ins and outs of real estate and first home buying process in Texas, may be a tricky subject for some. But, if you invest your time in reading the below, you’ll know everything you need before purchasing your new house.

Budget Wisely

One fatal mistake that new homeowners make is underestimating how much debt they’re going to take on. Mortgages aren’t cheap, and they can quickly be overwhelming if you’re not accustomed to budgeting well.

People that get approved for loans that they can’t afford was the cause of the 2008 market crash. Budgeting and looking over your finances before searching for a new home should be your top priority. 

As a rule of thumb, you should not spend more than about 30% on housing per month. This, of course, depends on many factors but it’s a good estimate for the average consumer. Don’t overstep these bounds; you’ll find yourself in a heap of financial debt quickly. 

Time the Home Buying Process in Texas

Buying a new home strongly depends on the real estate cycle. You don’t want to buy a house at the peak of its value. You should aim to buy real estate during a buyer’s market; this is indicative of a lot of homes on the market for sale, which reduces the price. 

Here are some things you should look out for that exemplify a buyer’s market (when you should search for a house):

• Houses are listed for longer than normal
• There are a lot of “for sale” signs in yards
• Houses are selling for lower than their estimates
• Real estate agents are offering incentives and relisting frequently

Obviously, you should avoid buying your home during a seller’s market.

Check for Incentives 

A lot of real estate agents or homeowners sell their houses with incentives included. Banks and local, state governments also offer subsidies and discounts on loans for particular people. New homeowners typically have reduced down payments and lower interest rates.

Check your local banks and government’s incentives before purchasing a home. It could save you a lot of money.

Be sure to check for home warranties, too. They’re very valuable if something were to go wrong. Here’s how to learn more about them. 

Investigate the Surrounding Area

Always do an area check before moving into a home in Texas. Some areas have prevalent crime rates, and it’s not required for the previous owner to disclose how good or bad the area is. It’s entirely up to the buyer to do their research.

Go and scope out the neighborhood before you get serious about a house.

Welcome Home!

Purchasing a new home can quickly devolve into a nightmare if you don’t know what you’re doing during the home buying process in Texas. There are a few things you should know to prepare yourself for the process for buying a home in Texas.

Before searching, you should budget your money and check for loan discounts and other incentives. Be sure to buy the house in a buyer’s market and a good neighborhood.

Are you interested in moving into a Texan neighborhood? Check out our other articles on Texas real estate.