Home buyer's guide for Houston, Texas

Buying in Texas follows a clear path, but some steps are different from other states. Here is what to expect.

1. Get pre-approved

Before you tour homes, talk with a lender. A pre-approval letter tells you your budget and shows sellers you are ready to buy. Plan for a down payment, closing costs (often 2–4% of the price) and cash reserves.

2. Choose your agent and sign a buyer agreement

Before touring homes with an agent, you will sign a written buyer representation agreement. It explains what your agent does for you and how the agent is paid. Compensation is negotiable; ask questions before you sign.

3. Search and tour

Decide on your must-haves, areas and commute. Your agent can set up listing alerts and schedule showings. Check the property tax rate, HOA fees and flood history for any home you are serious about.

4. Make an offer

Offers in Texas use standard TREC contract forms. Your offer includes:

• Price and how you will pay (cash or financing)
• Earnest money: a deposit held by the title company, credited to you at closing
• Option fee and option period: a small fee paid to the seller for the right to cancel for any reason within a set number of days (often 5–10)
• Closing date and any requests such as seller-paid closing costs

5. Use the option period well

During the option period, schedule a professional inspection and any specialist checks (foundation, roof, sewer line, pool). You can negotiate repairs or a price reduction, or cancel and keep your earnest money. After the option period ends, cancelling usually means losing your earnest money unless another contract condition applies.

6. Appraisal, financing and title

Your lender orders an appraisal to confirm the home’s value. The title company searches the title, and a survey may be needed. Review the HOA documents and the title commitment carefully.

7. Closing

Do a final walkthrough, review your Closing Disclosure (sent at least three business days before closing for most loans), and sign at the title company. Bring a photo ID and send funds by wire only after confirming wire instructions by phone with a known number.

After you move in

If the home is your primary residence, file for the homestead exemption with your county appraisal district (for example HCAD or FBCAD). It lowers your property taxes.

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This guide is general information, not legal, tax or lending advice. Contract terms vary; ask Jill about your situation.