Texas is an attractive state for real estate investors. Major cities Houston, Dallas, and Austin have high economic growth, growing populations, and high demand for housing. Texas has no state income tax, cheap land, and an efficient land acquisition process. If these highlights are enough to pique interest in investing in real estate, these are the five things to consider before buying a house in Texas. 

Evaluate Finances 

Obtain a credit report and evaluate the current financial situation. Getting into a home requires a down payment, which ranges from 3.5 percent to 20 percent in Texas. Texas has several programs in place to help first-time homebuyers with reduced down payments. One such program is the Texas Department of Housing and Community Affairs’ (TDHCA) My First Texas Home Program, which can reduce down payments to as little as 3.5 percent. 

Get Pre-Approved for a Mortgage 

Being pre-approved for a mortgage is needed prior to making an offer on a property. To be pre-qualified for a mortgage, candidates submit income, assets, debts, the price of the property, credit score, and desired down payment to a lender. This information is used to give an estimate for a mortgage and interest rate. 

A pre-approval is more formal and requires hard checking a credit score. If a pre-approval is granted, buyers will know what size loan and the interest rate they qualify for. 

Buying property is an expensive investment. Borrowers want a successful outcome with no hidden fees and competitive rates. Hard money brokers in Texas, Bay Mountain Capital, take a stream-lined approach to investment opportunities in major markets throughout Texas and surrounding Southeastern states. Clients who work with Bay Mountain Capital can expect a quick closing turn-around time for any type of real estate asset. 

Find a Real Estate Agent 

Texas does not mandate that buyers hire a real estate agent, however, working with a real estate agent minimizes error in requirements to buy a home. Use the Texas Real Estate Commission website to find an agent that best meets the buyer’s purposes and goals. 

Agents have access to local listings and sales data, giving them a snapshot of the market at any time. It’s important to understand whether the market favors buyers or sellers, what are the median prices in the area, and average listing time. 

Inspections and Negotiations 

Any home purchase in Texas requires an inspector to assess the standards of the property and an appraiser to determine a property’s value. An inspection will find any potential issues with a property that could cause problems later on. Should any issues be discovered, buyers can negotiate to either have the costs of repairs covered by the seller or seek a reduced price reflecting the costs of fixing defects. 

Depending on the year that a property was built, the structure may contain hazardous materials such as lead paint or asbestos. In case a homeowner has been exposed to dangerous materials, temporary insurance gives access to doctors and medical care. Agile Health Insurance offers affordable short-term health insurance for individuals seeking an alternative to Obamacare. This insurance is ideal for anyone in need of immediate coverage for illness or injury, who is between jobs, or who needs a lower deductible. 

Property Disclosures and Purchase Agreements

By law, sellers are required to make disclosures about the condition of the property under the Texas Real Estate Commission’s disclosure form. Sellers must list the features and type of equipment within the property and disclose if there are any known defects. 

Supplement the seller’s disclosure with a total home inspection by an independent home inspector. Make the purchase offer contingent on the property receiving a satisfactory inspection report. A written real estate contract must be signed by both buyers and sellers. The contract must include an offer to sell or buy, an acceptance of the offer, sale price, and thorough property description.