Education Hub/The Home Buying Process
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The Home Buying Process

10 steps from pre-approval to keys in hand — no surprises.

Step 1 — Get Pre-Approved (Not Pre-Qualified)

Pre-qualification is a quick estimate based on what you say. Pre-approval is a real underwriting review — the lender verifies your income, credit, and assets. Sellers take pre-approved buyers seriously. Pre-qualified buyers often get ignored in competitive markets.

  • Choose a lender and complete a full application
  • Provide W-2s, tax returns, pay stubs, and bank statements
  • Lender pulls a hard credit inquiry
  • You receive a pre-approval letter with a specific loan amount

Key point: A pre-approval letter is your ticket to make competitive offers. Without it, most sellers won't even respond.

Step 2 — Sign a Buyer Representation Agreement

Effective August 17, 2024, Texas agents are required by law to have a signed Buyer Representation Agreement before showing you properties or negotiating on your behalf. This agreement establishes our working relationship and gives you full fiduciary protections — meaning I am legally obligated to put your interests first.

  • Defines the scope and duration of our working relationship
  • Establishes how agent compensation is handled
  • Activates fiduciary duties: loyalty, disclosure, confidentiality, obedience, accounting

Step 3 — Property Search & Showings

We search MLS listings, off-market properties, and coming-soon listings based on your criteria. I'll schedule showings and help you evaluate each property — structure, location, market position, and red flags.

Step 4 — Make an Offer

When you find the right property, we submit a written offer using the TREC-promulgated contract (Texas Real Estate Commission forms — these are standardized and non-negotiable in their base form). We'll discuss offer price, earnest money, option fee, closing date, and any contingencies.

  • Purchase price and financing terms
  • Earnest money deposit (typically 1% — held in escrow by title company)
  • Option fee (gives you the unrestricted right to terminate during the option period)
  • Closing date and possession
  • Any repairs or concessions you're requesting

Step 5 — Option Period & Inspections

Texas buyers have a unique tool: the Option Period. You pay a small fee (negotiated, typically $100–$500) to reserve the right to terminate the contract for any reason within the option period (typically 7–10 days). During this window, you'll complete all inspections.

Key point: The option period is your safety net. Don't waive it — it costs very little and protects you from an enormous mistake.

Step 6 — Negotiate Repairs or Credits

After inspections, you can request the seller make repairs, provide a price reduction, or issue a closing cost credit. We negotiate based on inspection findings, market conditions, and what's reasonable. Not every item needs to be fixed — we'll prioritize what matters.

Step 7 — Appraisal

Your lender orders an independent appraisal to confirm the property is worth what you're paying. If it comes in low, you have options: renegotiate the price, pay the difference in cash, or (if you have an appraisal contingency) walk away.

  • Ordered by the lender after the option period
  • Appraiser is independent — neither you nor I choose them
  • If it appraises at or above contract price, you're clear
  • If it comes in under, you have a gap to bridge

Step 8 — Underwriting

Your file goes to the lender's underwriter for final review. This is the most document-intensive phase. Do not change jobs, open new credit accounts, or make large purchases during this time. Underwriting typically takes 2–3 weeks.

Key point: The cardinal rule: do not touch your finances during underwriting. No new credit, no large deposits, no job changes.

Step 9 — Clear to Close

When underwriting signs off, you receive a 'Clear to Close' (CTC). The title company prepares your closing disclosure (CD) which details every dollar in the transaction. You must receive it 3 business days before closing. Review it carefully.

Step 10 — Closing Day

Bring your government-issued ID. Bring a certified check or wire the closing funds (your lender will give you exact amounts). You'll sign a large stack of documents. The deed is recorded — often same day in Texas. Then you get the keys.

  • Closing typically takes 1–2 hours
  • Funds must wire before the cutoff time for same-day recording
  • Title company disburses funds to seller after recording
  • You receive keys upon funding

Ready to start the process?

This is what I do — help you understand exactly where you stand before you commit to anything.

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