Home buyer FAQs.
Straight answers to the questions buyers ask us most, from pre-approval and earnest money to MUD taxes and homestead exemptions. No jargon, no pressure. And if your question isn’t here, just ask.
First-time buyersNew constructionMoving to TexasVA, FHA & conventional
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New to this?
That’s the best time to call. We’ll look at your budget, your timeline and your options with you. No strings attached.
Before you start looking.
Should I buy a home or should I rent a home?
It depends on how long you plan to stay, how steady your income is, and how the true monthly cost of owning compares to your rent. If you’ll be in the area three to five years or more, buying often makes sense. If your job or plans might change soon, renting can be the smarter move for now. We help with both, so there’s no push either way.
How do I know if I’m ready to buy a home?
A few good signs: steady income, a credit score you’ve checked lately, savings for a down payment and closing costs (plus a little cushion), and plans to stay put for a while. You don’t need perfect credit or 20% down. Talk to a lender early. A quick pre-approval conversation tells you what you qualify for and what, if anything, to work on first.
Do I pay anything to work with you as a buyer?
How your agent gets paid is spelled out in a written agreement you sign before we tour homes. Often the seller or builder offers to cover some or all of it, and we can ask for it in your offer. Anything you might owe is agreed on up front, in writing, so there are no surprises. We’ll walk you through your options on our first call.
Why do I have to sign a buyer agreement before touring homes?
Texas law requires it. Since January 1, 2026, a Texas agent needs a written buyer representation agreement before showing you a home. It explains what we’ll do for you, how long the agreement lasts and how we’re paid. Read it, ask questions, and know that terms like length and compensation are negotiable.
What’s the difference between pre-qualified and pre-approved?
Pre-qualification is a quick estimate based on what you tell a lender. Pre-approval means the lender has actually checked your credit, income and assets. Sellers take a pre-approval letter much more seriously, and it keeps you shopping in a price range that works. Get pre-approved before you start touring.
How long does it take to buy a home?
Once your offer is accepted, closing usually takes about 30 to 45 days with a mortgage, and it can be faster with cash. The search itself can take a weekend or a few months, depending on the market and how picky you are (no judgment). New construction takes longer if the home isn’t built yet.
Know your real number.
Your mortgage payment isn’t your housing payment. We’ll help you add up taxes, insurance, HOA dues and MUD taxes before you fall for a house.
The money questions.
How much do I need for a down payment?
Less than most people think. Some conventional loans allow as little as 3% down for qualified buyers, FHA loans start at 3.5%, and VA and USDA loans can mean zero down if you qualify. Putting less than 20% down on a conventional loan usually adds mortgage insurance to your payment. Don’t forget to save for closing costs, too.
Are there down payment assistance programs in Texas?
Yes. Statewide programs from the Texas State Affordable Housing Corporation (TSAHC) and the Texas Department of Housing and Community Affairs (TDHCA), plus regional options like the Southeast Texas Housing Finance Corporation (SETH), can help with down payment and closing costs. Most have income limits, price limits or credit minimums, and you’ll need a participating lender. We’ll point you to lenders who work with them.
What credit score do I need to buy a house?
It depends on the loan. Conventional loans usually start around 620. FHA loans may allow scores as low as 580 with 3.5% down. VA loans don’t set a hard minimum, but lenders do. A higher score gets you a better rate, so if you’re close, a few months of cleanup can save you real money. Ask us for lender contacts who’ll give you a straight answer.
What will my monthly payment actually be?
Your mortgage payment isn’t your housing payment. Add up principal and interest, property taxes, homeowners insurance, mortgage insurance if you have it, HOA dues, and any MUD or PID taxes. In Texas, taxes and insurance can be a big share of the total. We’ll help you run the full number on every home you’re serious about.
How much are closing costs for a buyer?
Plan on roughly 2% to 5% of the loan amount for lender fees, title and escrow charges, and prepaid taxes and insurance. You can sometimes ask the seller or builder to pay part of them. Your lender gives you a Loan Estimate early on and a Closing Disclosure at least three business days before closing, so you’ll see the exact figures.
Is a 50-year home loan a smart option? What are the pros and cons?
A 50-year mortgage stretches a home loan over half a century. The longer term can mean a lower monthly payment, but you’ll pay significantly more interest over time and build equity much more slowly. It can make owning feel more affordable up front while costing more in the long run.
Ready to shop?
Browse Houston-area listings on our HAR page, then send us the ones you like. We’ll pull the comps before you write an offer.
Making an offer.
How do you decide what to offer on a house?
We pull recent sales of similar homes nearby, look at how long the home has been on the market and what it’s competing with, and factor in its condition. Then we talk strategy: price, option period, closing date, repairs and any help with closing costs. The goal is to get the house at a price that makes sense, not just to “win.”
What is earnest money, and do I get it back?
Earnest money is a good-faith deposit held by the title company, often around 1% of the price in our area. At closing it goes toward your down payment or closing costs. You can generally get it back if you terminate during your option period or under another contract protection, like financing. Walk away outside those protections and you could lose it. We track every deadline with you.
What is the option period and the option fee?
The option fee is a small, negotiated payment to the seller for the unrestricted right to terminate during the option period, a set number of days you agree on. That’s when you do inspections and decide whether to move forward, renegotiate or walk away. Under the Texas contract, the option fee has to reach the title company within 3 days of the effective date or you lose the option period. It’s usually credited to you at closing.
What happens if the appraisal comes in low?
Your lender will only lend based on the appraised value. You can ask the seller to lower the price, cover the gap yourself, meet in the middle, or, depending on how your contract is written, terminate. Texas has an optional appraisal addendum that sets how this works, so we decide how to handle it before you make an offer.
Do I need an agent to buy new construction?
You don’t have to have one, but we recommend it. The builder’s sales rep works for the builder. We negotiate incentives, review the contract and schedule inspections, and the builder often pays our fee. Important: many builders require your agent to be with you, or registered, on your very first visit. Call us before you walk into that model home.
Almost home.
Inspections, title, closing day. We keep track of every deadline so nothing sneaks up on you.
From contract to keys.
Do I need a home inspection, even on a brand-new home?
Yes. A licensed Texas inspector checks the roof, foundation, electrical, plumbing, HVAC and more, and the report gives you leverage to negotiate repairs during your option period. On new construction, inspections at key stages (like pre-drywall and final) catch problems before they’re covered up, and an inspection before your builder’s one-year warranty ends is smart, too.
What is a home warranty? How is it different from home insurance?
A home warranty is a service contract that helps pay to repair or replace systems and appliances, like your AC or water heater, when they wear out. Home insurance covers damage from events like fire, wind or theft, and your lender requires it. A warranty is optional, and sometimes the seller will pay for the first year.
Who pays for title insurance and the survey?
In Texas, title insurance premiums are set by the state, so they don’t change from company to company. Who pays for the owner’s policy and the survey is negotiated in the contract, and in many local deals the seller pays for the owner’s policy. If the seller has an existing survey and nothing has changed, it can often be reused with a signed affidavit (a T-47), which can save you a few hundred dollars.
What happens on closing day, and when do I get the keys?
You’ll sign your loan and title documents with the title company, bring your funds by wire or cashier’s check, and the lender funds the loan. Under the standard Texas contract, you typically get possession at closing and funding, so the keys usually come the same day. We’ll do a final walk-through beforehand to make sure everything is as agreed.
How do I protect myself from wire fraud?
Scammers send fake emails that look like they’re from your agent or title company, with “updated” wiring instructions. Before you wire a single dollar, call the title company at a phone number you looked up yourself, not one from an email, and confirm the instructions out loud. Real wiring instructions don’t change at the last minute by email. If something feels off, stop and call us at (832) 661-0475.
Only in Texas.
MUDs, PIDs, homestead exemptions and flood zones trip up newcomers and lifelong Texans alike. Ask before you sign.
Texas-sized questions.
What are MUD and PID taxes, and why do they matter here?
Many neighborhoods north of Houston sit in a Municipal Utility District (MUD), which issues bonds to build water, sewer and drainage and pays them back through an added property tax. A Public Improvement District (PID) works in a similar way, with an assessment for local improvements. Both can add a lot to your yearly bill. Sellers must give you a MUD notice with the current rate, and we compare total tax rates when you’re choosing between homes.
Why are property taxes so high in Texas?
Texas has no state income tax, so schools, counties, cities and special districts rely on property taxes. Your total rate combines every taxing unit your home sits in, which is why two similar homes a few miles apart can have very different bills. The good news: a homestead exemption and the 10% yearly cap on your homestead’s taxable value help keep things in check, and you can protest your appraisal each spring.
When should I file my homestead exemption?
As soon as you own and live in the home. Texas lets you apply the same year you buy, through your county appraisal district (for example, Montgomery Central Appraisal District or Harris Central Appraisal District). The usual deadline is April 30, and late applications are generally accepted for up to two years. As of 2026, the school district exemption is $140,000, with more for homeowners who are 65 or older or have a disability.
Do I need flood insurance if I’m not in a flood zone?
It’s worth a serious look. Plenty of Houston-area homes that flooded in past storms were outside the mapped high-risk zones, and regular homeowners insurance doesn’t cover flooding. Policies outside high-risk zones are often more affordable, and an NFIP policy usually has a 30-day waiting period, so don’t wait until a storm is in the forecast. Texas seller disclosures ask about past flooding, so read them closely.
What should I know about buying a home with an HOA?
Read the rules before you fall in love. HOAs can set rules on fences, paint colors, parking, rentals and even trash cans, and they charge dues and sometimes special assessments. In Texas, you’re entitled to the HOA’s subdivision information, including its governing documents and a resale certificate, and the contract gives you time to review it. We’ll help you spot red flags like big upcoming assessments or lawsuits.
This page is general information, not legal, tax or lending advice. Programs, limits and rules change, so confirm the details for your situation with your lender, title company or tax professional.
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