7 steps to buying a home in Austin, TX

Every home-buying experience is unique, but in most residential real estate transactions in Texas you can expect to go through the following process. Talk to your Realtor about your individual case and options.

Step 1: Secure financing

Speak with a lender (or a few) to determine how much house you can afford. Your lender will give you a pre-approval letter — which is submitted with your offer — for the loan amount you are approved for. If you are a cash buyer, you won’t need to meet with a lender, but you’ll still need to provide proof of funds. Your agent will walk you through the process.

Step 2: Hire a Realtor

You’ve probably been in contact with a real estate agent or two, but this is when you enter into an official, written agreement with the Realtor you’ll work with moving forward.

Step 3: Find a home!

Drive around and familiarize yourself with Austin neighborhoods and home styles. Work with your Realtor to find home choices that meet your neighborhood and features requirements. Identify your favorite homes through your Realtor’s MLS portal. Schedule time to go house hunting and find a house you want to purchase.

Step 4: Make an offer

Once you’ve found a home you want to buy, your Realtor will review market conditions to determine what type of offer to submit. They should walk you through the offer, your strategy, and your options. At this point, the negotiation between you and the seller might go back and forth a few times before you both agree on the contract terms.

Step 5: Go under contract

When you and a seller agree to terms, you are “under contract.” At this point, you’ll provide some up-front fees that your Realtor can explain in more depth, and the title company that will facilitate your closing will open an escrow account for the transaction. From this point until closing (as little as a week to 45 days), you’ll need to be in close communication with your lender, title company, and Realtor and provide them all requested documents as quickly as possible.

Step 6: Enter into option period

In Texas, buyers and sellers often negotiate what’s known as an option period — a period of time in which a buyer can exit the contract for any reason. This gives the buyer time for due diligence to make sure the property is a good purchase for them. This is when the buyer schedules an inspection and appraisal and repairs are negotiated. Your Realtor should be in close communication during this time, guiding you through the process.

Step 7: Close on your new house!!

At this point, the buyer and seller will complete the closing paperwork at the title company, the funds are released, and the buyer is given the keys to their new home!