Everything you need to know about the home buying process: key concepts, the 15-step roadmap, avoiding delays, closing day, and life after closing.
Buying a home can be overwhelming. Many buyers settle to end the process. A knowledgeable REALTOR® can make it smoother. Write down your questions as you go—here are two frameworks to start.
Wants are optional—things you can live without or add later. Needs are deal-breakers: number of bedrooms, single-family vs. condo, location. Create a list and share it with your agent so they don't show homes that don't fit.
Keep a running list of questions for your REALTOR®. Writing them down ensures you get the guidance you need to find the right home.
What it is: Title is your right to own or use your property and any limitations on those rights.
Why it matters: No buyer wants to inherit debts or legal issues that could affect property rights. Title determines how you can use or modify your property.
What it is: Title professionals examine public records for problems or defects and may manage closing.
Why it matters: They complete the title search, write the policy, and reduce your risk of ownership issues. Your title professional has your back so you have peace of mind.
What it is: An early step to uncover issues that could limit your rights to the property.
Why it matters: Title professionals typically resolve issues before you know they exist. After the search, a policy can be issued. Protects you from inheriting a previous owner's debts or title problems.
What it is: There are two types: owner's and lender's. The owner's policy protects you; the lender's policy protects the lender and is usually required. Both are typically paid by you.
Why it matters: Undiscoverable defects can surface after the search—forgery, fraud, liens, unknown heirs. Owner's title insurance protects your investment. Most homebuyers protect their largest investment with owner's title insurance.
What it is: The final step in the home buying transaction.
Why it matters: It enables the transfer of ownership. You get the keys to your home.
When preparing to buy a home, many words may be unfamiliar. This list of commonly used terms links to the glossary for full definitions.
A title insurance policy is a one-time cost paid at closing that lasts as long as you have an interest in the property. In Texas, rates are regulated by the TDI and based on the amount of coverage.
Most lenders require a lender's title policy to protect their investment, similar to requiring homeowners insurance.
Owner's title insurance helps you feel confident there are no other claims to the property. It insures access, the right to occupy, and good and indefeasible title.
Fifteen key steps from pre-qualification to keys in hand.
Pre-qualification is a lender estimate; pre-approval involves credit checks and documentation for a specific loan amount.
Your agent is an expert who will advocate for your best interest.
Determine how much you can afford. Use a Home Affordability Calculator to get started.
With pre-approval in hand, find your dream home.
Your agent helps with negotiation. An earnest money deposit is typically required.
A contract period giving you the right to terminate for any reason. Use it for the home inspection.
Deposit earnest money with the title company within three days of contract execution.
The title company examines public records for ownership, liens, judgments, and other matters affecting title.
Hire a professional inspector to evaluate the property. Must be completed before the option period ends.
A licensed appraiser provides an independent estimate of fair market value.
The lender reviews your application, documents, and credit. The loan is approved if the property meets requirements.
Secure coverage for damage to your home and other structures.
Sign documents and bring ID, funds, and any required paperwork. Confirm wire receipt if applicable.
The title company sends documents to the lender for final approval. Funds are distributed.
Once funded, you receive the keys to your new home.
Prior planning prevents inconvenience. Awareness of these items helps ensure a smooth closing.
Return all lender-requested documents and complete required tasks promptly. Delays in documentation can push back your closing date.
Pay any delinquent taxes in your name before closing and furnish the original tax receipt. Closing cannot proceed until payment is confirmed.
If you have a common surname, complete a Confidential Information Statement and return it to the title company before closing.
Texas is a community property state. If married, your spouse must sign the deed of trust at closing due to Texas Homestead Laws, even if not on the loan.
The title company must approve any Power of Attorney before closing. The original must be delivered prior to closing and recorded first. The title company will contact you on closing day to confirm you have not revoked it.
Documents must be signed exactly as requested and properly notarized. Documents mailed internationally must be notarized in English.
Review the survey, title commitment, HOA documents (if applicable), and Closing Disclosure promptly. Alert your REALTOR® or title company to any errors.
You sign forms including the Closing Disclosure, title documents, and loan documents (if applicable). Review the Warranty Deed to confirm who is taking title. After signing, the closing team processes documents for funding—this can take several hours. Once funded and disbursed, you receive the keys. The title company records the Warranty Deed to convey title to you.
Congratulations! Important to-dos for new homeowners:
The Warranty Deed and Owner's Title Policy will be sent by email about a month after closing. Print and store your policy for safekeeping.
Contact the CAD to ensure the property is rendered in your name for the upcoming tax year.
File your homestead designation with the County Appraisal District. Exemption forms are available online at no cost.
If you received a home warranty and want additional coverage, contact the Home Warranty company directly.
Reduce physical mail at your new address for up to 5 years at optoutprescreen.com or 1-888-5-OPT-OUT.
Exemptions reduce the taxable value of your property. File with your County Appraisal District. It is free to file—avoid anyone who charges a fee.
You may qualify for: Homestead Exemption, Disabled Veteran Exemption, Disabled Individual Exemption, Over 65 Exemption, Agricultural Land Exemption.
New homeowners typically file for homestead exemptions in the year after acquisition. Applications are usually due by April 30. Contact your County Appraisal District for current requirements.
Ensure your Texas Driver's License or ID address matches your property address—mismatches can delay exemption approval.
Additional tools and resources are in development and will be added here as they become available.
Your title company or attorney can help with your home buying and title questions.
"Preparation is the key to success."
— Alexander Graham Bell
