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The Texas Home Buying Process
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1.
Obtain your credit score:
www.equifax.com
www.transunion.com
www.experian.com
To get all three visit www.myfico.com
2.
Save money:
The Texas Department of Housing and Community Affairs offers a First Time Homebuyer program for very low
to moderate income Texas families, as well as the Down Payment Assistance Program. Call 800-792-1119 for more information.
3.
Select one of our REALTORS as your Accredited Buyer's Agent:
Sign the Buyer's Representation Agreement, otherwise the
Package Realty REALTOR represents the Seller or Builder. The Home Tour Fee is $40 per hour without a signed Buyer's Representation
Agreement, which states you are only working with the selected PACKAGE REALTY Realtor.
4. Select a Lender: (Know
your purchasing power before you start touring homes)
Make sure your lender provides you with a pre-approval letter. Meaning,
the loan application and all of your supporting documents have gone to the lender and your almost guaranteed the loan. A pre-qualification
letter is not the same thing. A pre-approval letter gives you more negotiating power when you put in an offer. Some Realtors
require the letters be submitted at the time of the offer.
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Information
Your Loan Officer Needs:
2 years residence history with phone numbers, addresses and landlord/mortgage company name
and account number
2 years employment with W2 Forms, phone numbers, addresses and supervisor's name
Provide 3 most recent
months bank statements and paystubs
Provide monthly debt and budget information
Marriage license and/or divorce decree
Driver's
License and Social Security Card
If a Veteran, provide DD214 Certificate of Eligibility Form
5. Write the offer:
The
offer will include $100 Option Check made payable to the seller. You will not get this money back because it "buys" you 10
Calendar Days to take the property off the market for you to have inspections done. The buyer pays for inspections and this
money is not refundable either.
The offer will also include $500 to $2,000 Earnest Money Check payable to which
ever title company the Seller or Buyer chooses first and foremost. The title company is negotiated based on who pays for the
policy, location and/or Realtors past working experience with that title company. Earnest money is applied to closing costs.
If you go over your option period without amending the contract, you risk losing your earnest money and/or you are buying
the property "AS IS". So it is very important to get inspections done in a hurry and make up your mind about continuing the
sale.
6. Offer is Accepted or Rejected:
The seller can accept or reject your offer. If the seller rejects your
offer, you can adjust the sales price or terms and re-submit a new offer. Again, the seller can accept or reject your new
offer and the process continues until everyone can agree.
7. Offer is Accepted:
Once all contract terms are
agreed upon and everything is signed by Seller and Buyer, the Realtors coordinate the inspections, survey, appraisal and closing.
If repairs are to be made, this is also worked out.
8. Buyer's Walk-thru:
Buyer's agent and Buyer tour property
24-hours prior to closing to make sure repairs are completed and home is in proper condition.
9. Closing:
Realtors
attend closing with their clients and double check the title company's HUD 1 or Settlement Statement. Receipts and warranty
paperwork for repairs are exchanged along with keys, garage door openers, etc.
10. Funding:
Buyer will not take
possession of the property until funding of the loan paperwork to the title company. DO NOT close on a Thursday or Friday!
Sometimes it takes awhile to fund. Don't make any large purchases or open charge cards until after funding on your home, as
your credit score could be run right before closing!
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