First Time Buying in Austin? Start Here

Buying your first home is a lot of new vocabulary at once. The good news is that the process itself is pretty predictable once you know the order things happen in. Here is how I walk first time buyers through it.

Step one: talk to a lender before you talk to a seller

Before you tour anything, get preapproved. A preapproval tells you what a lender is actually willing to lend you, what your monthly payment looks like at different prices, and how much cash you need for a down payment and closing costs. It also makes your offer credible when the right house shows up. Talk to at least two lenders so you can compare rates and fees side by side.

Step two: decide what matters most

Make two short lists. The first is your must haves: number of bedrooms, a yard, a commute you can live with. The second is your nice to haves. Most first homes check every box on the first list and a few on the second. Knowing the difference keeps you from passing on a great house because the backsplash is ugly.

Step three: sign a buyer agreement and start touring

In Texas, you will sign a written buyer representation agreement with your agent before touring homes. It spells out what your agent does for you and how they are paid. Read it, ask questions, and make sure you understand it before you sign.

Step four: write an offer

When you find the one, we look at recent comparable sales, how long the home has been on the market, and how much competition there is. Then we write an offer on the Texas Real Estate Commission contract with a price, earnest money, an option fee and option period, a closing date, and any requests like help with closing costs.

Step five: the option period

Once your offer is accepted, the option period starts. This is your window to do inspections and decide if you want to move forward. If something big comes up, you can negotiate repairs or a price change, or walk away and get your earnest money back.

Step six: appraisal, loan, and closing

Your lender orders an appraisal and finalizes your loan. The title company handles the title search and prepares closing documents. A few days before closing, you get your final numbers. On closing day you sign, the funds move, and you get your keys.

A few first timer tips

• Keep your finances boring until closing. No new car, no new credit cards.
• Save receipts and bank statements. Lenders ask for a lot of paperwork.
• Budget for move in costs like utility deposits, a lawn mower, and window coverings.
• Ask questions. There are no silly ones, and a good agent wants you to ask.

Your first home does not have to be your forever home. It just has to be a smart next step. If you want to talk through yours, I'm always happy to.