Texas is a large and fast-growing market, and the home-buying process here has a few distinct features worth understanding before you start touring properties.
1. Property Taxes Are Higher Than Many States
Texas has no state income tax, and property taxes help make up the difference. Rates vary by county and school district, so it is worth checking the specific tax rate for any home you are considering, since it directly affects your monthly payment.
2. Title Companies Handle Closing
Unlike some states where attorneys run the closing table, Texas closings are typically handled by a title company. The title company manages the paperwork, holds earnest money in escrow, and coordinates the final signing.
3. Option Periods Are a Texas Feature
Texas contracts commonly include an option period, a short window where the buyer pays a small fee for the right to walk away from the contract for any reason. This is separate from the inspection itself and gives buyers real flexibility early in the process.
4. Getting Pre-Approved Early Matters
- Competitive markets like Austin, Dallas, and Houston move quickly
- Sellers often expect a pre-approval letter with any offer
- Rural and suburban areas may have different appraisal timelines
- Property insurance costs can vary significantly by region
5. Local Loan Options
Texas buyers have access to the same major loan types available nationwide, including conventional, FHA, and VA financing, along with programs tailored to self-employed borrowers. Working with a broker familiar with local appraisal timelines and title practices can help keep your purchase on schedule.
Start Your Texas Home Search
Ovation Mortgage has local loan officers serving buyers across Texas. Apply online or contact us to get pre-approved before you start touring homes.
