How to Buy a House in Texas

Everybody dreams of buying their first home. It is something that you work hard for, something that you go without nice things for (in order to save a down payment), and something that you will always cherish.

The feeling of buying your first home is truly special, but it doesn’t really go away – no matter whether you are buying your first house or your fifth house. 

Buying a house is one of the most exciting things that you can do. The process of researching areas to live, attending open houses, and putting in an offer is truly thrilling. It is totally worth the stress that follows until you get your keys. 

The process of buying a house will differ from State to State. So, if you are planning on moving to a different State, then you should do your research into buying a house in that specific area. 

In this guide, we’ll be taking a look at how to buy a house in Texas. So, if you are a Texan first time buyer, or someone who is looking to move to Texas for the first time, read this guide to find out how to buy a house. 

How Much Do Houses Cost In Texas?

First things first, let’s take a look at how much houses cost in Texas. If you have done some research into living in Texas, then you will know that cost of living is generally lower in this State. That is partially because housing costs in Texas are much lower. 

Houses in Texas are some of the cheapest houses in the whole of the USA. There are two main reasons for this. The first is that wages (Also see How Much Do Teachers Make in Texas) are typically lower in Texas, and so the cost of living has to be lower too. The second is that Texas is a large State.

Texas is the second-largest State by land area, and because of this there is more land in Texas than is needed. Due to this, land is sold cheaper, meaning that houses can be sold at a lower price too. 

But, how much do houses cost in Texas? Of course, the cost of a specific home will depend on a number of factors, including whether it is in a city or a rural area, the number of bedrooms, and the amount of land that comes with the house.

But, on average, houses in Texas cost around $247,210. Just to put this in perspective, the average cost of a house in Utah is $465,012.

What Do You Need To Buy A House In Texas?

So, if you have been drawn to Texas by work, the low cost of houses, or simply wanting to stay in your home State, you probably want to know what you need to buy a house in Texas.

In general, you will need the same sorts of things no matter where you plan on buying a house. So, let’s take a look at what you will need.

There are 2 things that you will need in order to buy a house in Texas. They are cash, and a good credit score. Most people purchase their houses using a mortgage, but even when you do this you will need enough cash to cover the down payment of your home.

The specific down payment that you will need to make will depend on the type of house that you want to buy. So, take a look at the styles of houses you like in order to work out an average. 

You will also need a good credit score in order to get a mortgage. Your credit score is a reflection of your financial situation and behavior, so it really matters.

On average, you will need a credit score of between 662 and 730 in order to successfully buy a house in Texas. Now that we know that, let’s take a look at how to buy a house in Texas. 

How To Buy A House In Texas

Once you have gathered everything that we have spoken about above, you are ready to begin the process of buying a house.

First things first, you should speak with your financial advisor to get a pre-approved mortgage. This will be tailored to your budget and finances, and it will really speed up the process once you find a house that you like. 

With your pre-approval, you should then seek the help of a Texas real estate agent. You can tell them exactly what you are looking for in a house, and the areas that you are interested in.

From there, your real estate agent will supply you with plenty of potential houses, usually in the form of a shortlist. From this shortlist, you can then begin viewing homes. 

In the process of looking at houses, you will likely attend many open houses, and private viewings too. Viewing lots of houses is important as it can help reinforce exactly what you want.

Once you find a house that you are interested in, you can then put a written offer in for it, with the help of your real estate agent. 

When your offer is accepted, you can then organize a property inspection and appraisal. When you do this, an independent third-party will come in and look at the property.

They will be able to determine if there are any hidden issues with the house that could make it unsuitable. If everything is fine, the purchase will move to escrow as Texas is an escrow State. 

In escrow, you will be expected to put down a payment for the house before anything happens. The payment essentially works as a retainer and formalizes the agreement between you and the seller.

While you are in escrow, all the formal processes will take place, such as applying for mortgages, etc. Once all that is complete, and the deal closes, escrow will end, and the property will be yours. 

Summary 

In short, buying a house in Texas is a great idea because the average cost of houses is significantly lower than the cost in other States.

If you are thinking of buying a house in Texas, the process isn’t actually that different to other States. But, if you want to find out more about how this works, read the guide above to find out how to buy a house in Texas.

Robert Miller
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