Buying Your First Home in Houston This Fall: What to Know

Fall is a good time to buy in Houston for a lot of first-time buyers. The summer rush is over, the weather is finally comfortable for touring homes, and many people want to be settled before the holidays. If you're thinking about buying your first home this fall, here's what I'd want you to know before you start.

1. Start with the Lender, Not the Listings

It's tempting to start scrolling listings first. But the most useful first step is a conversation with a lender. A pre-approval tells you what you can borrow, what your payment might look like, and what you'll need to bring to closing. It also makes your offer stronger, because sellers want to know you can actually close.

Ask the lender about more than the rate. Ask what loan types you qualify for (FHA, conventional, VA or USDA), what the mortgage insurance will cost, and what your total closing costs might be. If you want to keep an eye on where rates are heading, Freddie Mac publishes a weekly national average in its Primary Mortgage Market Survey.

Freddie Mac weekly mortgage rates

2. Ask About Down Payment Assistance Early

Many first-time buyers assume they need 20% down. Most don't. There are also programs that can help with a down payment or closing costs. In our area, two worth asking about are the Texas Department of Housing and Community Affairs (TDHCA) Homebuyer Program and the City of Houston's Homebuyer Assistance Program. Both have their own rules about income, location and homebuyer education, and funding can open and close. Ask early. Some programs take extra time to process, and you'll want that built into your contract dates.

• TDHCA Homebuyer Program
• City of Houston Homebuyer Assistance Program

3. Take Flood Risk and Insurance Seriously, Even in Fall

Atlantic hurricane season officially runs June 1 through November 30. But in Houston, flooding is something to think about any month of the year. Before you fall in love with a house:

• Read the seller's disclosure. Texas sellers have to answer specific questions about flooding and flood insurance.
• Look up the flood zone and ask whether the home has flooded before. You can look up FEMA flood maps by address at the FEMA Flood Map Service Center
• Get insurance quotes early, both homeowners and flood. Most homeowners policies don't cover flood damage. A flood policy through the National Flood Insurance Program typically has a 30-day waiting period before it takes effect. There's an exception when the policy is required by your lender as part of getting a mortgage, but don't leave it until the last week.

FEMA flood insurance basics | FloodSmart

4. Know How a Texas Contract Works

In Texas, most resale homes are bought using the TREC One to Four Family Residential Contract (Resale). A few terms you'll hear:

• Earnest money: a good-faith deposit held by the title company and usually credited toward your purchase at closing.
• Option fee and option period: you pay the seller a small fee for a set number of days to inspect the home and back out for any reason. Use that time well. Schedule your inspection right away.
• Title company: in Texas, closings happen at a title company, which handles the title search, title insurance and closing paperwork.

TREC contract forms

5. Budget for More Than the Down Payment

Plan for the option fee, inspections, the appraisal, closing costs, and the prepaid taxes and insurance your lender will collect at closing. Also look at the property tax rate, HOA dues and any MUD taxes. MUD taxes are common in many Houston-area suburbs and can make a big difference in your monthly payment. Your lender's Loan Estimate will show you the real numbers for your loan.

6. After You Close: File Your Homestead Exemption

A homestead exemption can lower your property taxes. To qualify, you need to own the home and live in it as your principal residence. You apply with the appraisal district in the county where the home is located (HCAD if you're in Harris County). The general deadline for exemption applications is before May 1. If you buy after January 1, you may still be able to get the exemption for part of that year if the previous owner didn't have it, so ask your appraisal district once you move in.

• Texas Comptroller: Property Tax Exemptions
• Harris Central Appraisal District (HCAD)

7. Have Someone in Your Corner

A first home involves a lot of deadlines and decisions. A buyer's agent represents you, negotiates for you, and keeps the process on track. Before we tour homes, we'll sign a written buyer agreement that spells out exactly what I do and how I'm paid, so everything is clear from day one.

Ready to Start?

Call or text me at 832-545-0236, or send me a message and let's talk about your plans. Se habla español.

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First-time buyer guide (page)

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Danny Garcia, Founder/REALTOR® | Liv Texas, brokered by Realty of America
TREC Brokerage #9015126 | Agent License #563028
Call/Text: 832-545-0236 | [email protected]
4200 Westheimer Rd #1000, Houston, TX 77027
Se habla español.