Navigating the Home Buying Process in Texas
Congratulations on taking the first steps toward homeownership! Real estate laws vary significantly by state, and the Texas home-buying process has its own unique set of rules and terminology.
At Remington Team Realty, our service-driven professionals are here to provide personalized guidance, ensuring you meet every legal deadline and protect your investment from the moment your offer is accepted.
Understanding the Texas Real Estate Timeline
Once your contract is signed by both parties (the “Effective Date”), a series of strict legal deadlines begins. In Texas, time is of the essence. Failure to meet these deadlines could result in the loss of your earnest money or in the compromise of your right to terminate the contract legally. We manage these timelines for you to ensure a smooth, worry-free path to closing.
Essential Out-of-Pocket Expenses Before Closing
While your down payment is paid at the end of the transaction, there are several “upfront” costs you should prepare for once you are under contract.
1. Earnest Money
Earnest money serves as a “good faith” deposit to show the seller you are committed to the purchase.
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Cost: Typically 1% of the sales price.
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Deadline: Must be delivered to the Title Company within three days of the contract’s effective date.
2. The Option Fee (The “Option Period”)
Unique to Texas, the Option Fee buys you the unrestricted right to terminate the contract for any reason within a set number of days (usually 5–10). This is your “due diligence” window to perform inspections and negotiate repairs.
3. Professional Home Inspections
While not mandatory by law, home inspections are highly encouraged to protect your interests. Depending on the property, you may also consider:
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Pest Inspections (WDI): Checking for termites and wood-destroying insects.
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Specialized Inspections: Pool, septic, or well water testing, if applicable.
4. The Appraisal Fee
If you are obtaining a mortgage, your lender will require an Appraisal to ensure the home’s value supports the loan amount. The lender collects this fee upfront and orders the appraisal from a neutral third party.
5. Final Loan Approval & Underwriting
Once the appraisal and inspections are complete, your lender’s processing team submits your full financial file to Underwriting. This is the final stage where your loan is officially approved, and you receive the “Clear to Close.”