What is The Buying Process in Texas?
- Get pre-approval Letter from LOCAL LENDER (my local lenders are below)
- Find a home you love!
- Discuss offering strategy
- Submit offer by certain date
- Listing Agent will go over all offers
- Negotiations may happen
- You’re notified your contract has been accepted, contract executed
- Deliver option fee & Earnest Money to the Title office
- Option Fee check delivered before 5:00pm on the 3rd day of Option Period
- Applied to purchase of house
- Made out to Seller
- Earnest Money check to Title company before 5:00pm on the 3rd day of Option Period (depending on holidays)
- Entitled to receive Earnest Money refund as long as terminated for allowable reasons
- Made out to Title Company (they will tender—cash—the check)
- You may use electronic forms of payment!
- ZOCCAM for Earnest Money (Ask Title about ZOCCAM)
- Venmo or Zelle for Option Money (send to Seller’s handle; screenshot receipt)
- Option Fee check delivered before 5:00pm on the 3rd day of Option Period
- Once we have executed the contract, agent (David) sends buyer a “Buyer’s Checklist” + “Critical Dates”
- Buyer schedules home inspection
- 4 preferred inspectors on our list
- Can do Wood Destroying Insects (WDI) Test if you want… (get the test if home is 10+ years old)
- Buyer attends inspection if they can make it; inspector gives summary
- Recap inspection
- Perfect homes have at least 18-page report, and will have code violations — DON’T PANIC.
- We’re looking for material defects (Roof, Foundation, Plumbing, Electric, HVAC, Safety, Destruction, Mold)
- Buyers then tell Realtor (David) what they want repaired or how much money they want Seller to give them for the repairs
- Approach Seller with repairs
- Once repairs agreed upon, home goes to “Pending”
- Only thing left for Buyer is to comply with Lender requirements
- Financial papers
- It’s federal law to resubmit papers lots of times
- Get Title Commitment
- States what the Title Company is going to do in transaction, what liens are on the property, and what the Title Policy covers
- We will see what the title comes back with
- Buyer must read Commitment carefully
- HOA Bi-laws (if applicable)
- Buyer must review and see what’s acceptable to them
- Must receive every document in Bi-Laws!!
- HOA Insurance Rider
- Buyer must review and see what’s acceptable to them
- HOA Budgets
- Agent (David) to look at budgets and see if HOA is underwater
- Buyer also checks HOA budget – see if HOA is organized
- HOA addendum
- Can terminate contract within 3 days after receiving HOA Docs!!!
- Entitled to refund of Earnest Money
- Schedule closing time and pick home warranty company/package
- Title companies suggest you close before 2:00pm so you can fund in the same day you close
- Final Walk-thru 24-72 hours before closing
- Go to close, sign papers, get keys!!!
- You own the home when your loan funds (if getting mortgage on property)
- Submit a testimonial for David — It helps me get better/grow my business 🙂
Buyer’s Guide to a Smooth Transaction
- Use a local mortgage lender
- Get “pre-approved” — or even better — have your lender get you “pre-underwritten”
- Be prepared to move quickly to see homes you like, and to make a speedy decision at each one! We’re not shopping. Once you have seen a home please inform me of your decision ASAP. I will be on standby if I feel that you may want to make an offer on a home. We don’t want to miss any deadlines to submit offers and will want to submit as quickly as possible
- Are you prepared to pay cash above list price? If so, how much?
- Consider paying the title policy
- Consider waiving home warranty
- Consider having a short option period with a higher option fee; or no option period
- Consider raising earnest money deposit
- Consider closing at the listing agents preferred title company
- Consider waiving right to terminate due to appraisal; or if appraisal is over a certain amount
- We will need to respond to negotiations promptly. During this process be prepared to answer any phone calls, texts, or emails from me ASAP. If I am calling you during this time it is not to talk about the Dallas Cowboys (Lord, help them…)
- Be prepared to make a 30 second to 1 minute video explaining why you love the house that you are making an offer on. We will submit this with your offer
- Be prepared to get an option fee and earnest fee to my office within 24 hours of executing a contract
- Yes!!! We are contracted!! What do we do next?? Once we get executed you will be receiving a new checklist with action items from us
My Preferred Local Lenders
Justin Padron
Watermark Home Loans
1920 McKinney Ave #7H, Dallas, TX 75201
PadronLoans.com
(817) 913-6892
justin.padron@watermarkhomeloans.com
Stephanie Cigainero
Interlinc Mortgage
7711 San Jacinto Place #100, Plano, TX 75024
(469) 531-0257
stephaniec@lincloan.com
Devin Bullard (HECM & HECM for Purchase Specialist)
Fairway Mortgage
2624 Long Prairie Rd, Flower Mound, TX 75022
(530) 657-1319
devin.bullard@fairwaymc.com
Service Providers
Home Inspectors
- Prospect Inspection (Lee Warren): 469-682-0341
- Smith Inspections (Jeff Smith): 817-430-4210 (can also do termite inspection for additional $’s)
- Tim Bethel Inspector: 214-668-1249
- Pillar to Post Inspectors (Ken Duggan): 214-399-5862
Pest Control
- Arrow Pest Control: (Termites and wood destroying ants) 888-462-7769
Foundation
- Doug Rushing — MBR Foundation: 214-455-4076
Roofing
- Luke Anderson, Colt Construction: 817-789-7588
- Bryce Buford, Buford Roofing: 817-404-9071
Pools
- Scooter Shaffer, Knock Out Pools: 817-458-1292
HVAC
- Mark Garcia, North Texas Comfort: 682-564-5378
- Alex Wright, JW Mechanical Systems: 817-771-1452
Electrician
- Mike Love: 214-524-1243
Plumbing
- Les Wells: 972-822-0270
Interior/Exterior Work
- Complete Exterior Solutions: 214-735-1363
- Greenway Designs: 469-506-3686
Handy Man
- Patrick Price — justaguyandatruck.com: 682-319-9519
David Stoltzman 