Navigating the Texas Resale Home Buying Process: A Step-by-Step Guide
Buying a home is one of the most exciting and significant milestones in life. In Texas, the resale home buying journey is structured in a series of well-defined phases, each with its own crucial tasks and timelines. Whether you’re a first-time buyer or a seasoned homeowner making your next move, understanding this process can ensure a smoother, more informed experience. For a copy of our full checklist in .pdf format, click the link at the end of the article and we'll email it to you.
This comprehensive guide breaks down the Texas resale home buying process into six main phases, providing clarity on what to expect at every step — from house hunting to closing and beyond.
Phase 1: Home Search to Accepted Offer
Know Your Budget and Needs
Before stepping into any open house or setting foot in a property, begin by identifying your financial capability. This includes getting pre-approved by a lender to understand how much house you can afford. Establish your must-haves, nice-to-haves, and deal-breakers based on your lifestyle and future goals.
Begin the Search
With your budget, criteria, and pre-approval in hand, it’s time to team up with a real estate agent and start the hunt. Your agent will help filter properties, schedule tours, and compare listings that meet your specifications. Depending on market conditions and preferences, this phase can take days or even months.
Making the Offer
Once you’ve found "the one," your agent will help you determine a strategic offer price. This involves assessing:
· The home's condition
· How well it fits your needs
· Time on the market
· Ongoing showing activity
Offers are formalized using state-approved contract forms. After negotiation, if your offer is accepted, the executed contract is submitted to both the title company and your lender, marking a transition to the next phase.
Phase 2: Active Option Period
Understanding the Option Period
This is typically a 7-10 day window starting from the date the contract is signed. It allows the buyer to inspect the property and withdraw for any reason, provided it's within the timeframe.
Key Activities
· Submit Earnest and Option Money: Due within 3 days (extended to the next business day if this falls on a weekend or holiday).
· Start the Title Process: The title company opens escrow and begins a title search to ensure the property can legally be sold.
· Initiate Loan Processing: Submit the contract to your lender and begin their checklist of documentation.
Inspections and Negotiations
You’ll begin with a general home inspection, which may recommend specialized inspections (e.g., HVAC, roofing, foundation). Based on these findings, you can negotiate with the seller for repairs or credits. If agreements are reached, these are documented in a repair amendment.
Survey and Appraisal
A property survey may be required, depending on lender and title company preferences. Costs range from $400 to $700. The appraisal — usually ordered by the lender — determines if the property value justifies the loan amount. This is one of the most common causes of closing delays, so it's recommended to initiate this during the option period.
Phase 3: Pending
Behind-the-Scenes Processing
This is often the quietest yet most crucial phase. It lasts from the end of the option period until the lender issues a “clear to close.” Most of the work is handled by the lender and title company.
Lender and Title Activities
· Initial Loan Approval: Your documents are scrutinized again by the lender's underwriters.
· Title Commitment: Confirms that there are no liens or legal obstacles to the sale.
· HOA Documents: If applicable, these must be delivered within the timeline set in your contract. You may back out if documents are late or unacceptable.
Survey & Underwriting
The survey (if needed) is finalized and submitted. Your loan file goes through final underwriting — a critical and sometimes repetitive process designed to detect any issues.
Initial Closing Disclosure
By law, this must be issued at least three business days before closing. It outlines your estimated costs. While not final, this document gives you a preview and must be acknowledged promptly. You sign to acknowledge receipt and highlight any errors to your lender and realtor.
Home Warranty and Closing Appointment
Buyers often include a home warranty in the offer. Once the loan is cleared, a closing appointment is scheduled. If you're using a recommended title company, you may be able to set this up earlier.
Phase 4: Clear to Close
What It Means
This milestone signifies the lender's full approval of the loan and allows the transaction to move toward completion.
Final Preparations
· Loan Documents Sent to Title Company: Funds and legal documents are prepared.
· Final Closing Disclosure: Once finalized, this document shows the exact amount of funds you will need to bring to closing, and your total monthly payments.
· Wire Transfer: The buyer must wire closing funds and confirm receipt with the title company.
· Utility Transfers: Schedule utility services to start in your name on the day of possession.
Phase 5: Closing and Funding
The Final Countdown
Closing typically occurs over a few hours, often at the title company. In Texas, buyers and sellers sign separately, usually with an escrow officer present.
What to Bring
· Government-issued photo ID (usually a driver’s license)
· Confirmation of wired funds (or instructions from the title company)
What Happens Next
· After signing, documents are sent back to the lender.
· Upon approval, the lender authorizes fund release.
· The title company sends the “funded” message — now you're officially a homeowner!
Exceptions to Be Aware Of
· Remote Closings: May delay funding, especially if international parties are involved.
· Late Closings: Closings late on Fridays or before holidays may not fund until the next business day.
· Unexpected Delays: Rare, but possible due to missing signatures or clerical issues.
· Table Funding: Some lenders allow the title company to fund immediately after all documents are signed. Ask your lender if they table fund, so you have realistic expectations about when you will get your keys.
Pro tip: Avoid scheduling movers or furniture deliveries on closing day. Plan for a buffer to avoid inconvenience if any last-minute hiccups occur.
Phase 6: Homeownership
Welcome Home!
Now the fun (and responsibility) begins. Homeownership is ongoing and requires proactive care and planning.
Initial Tasks
· HVAC Servicing: Especially if the seller didn’t handle this before closing.
· Homestead Exemption: File to reduce your property taxes if this is your primary residence.
· Register Warranties: Ensure you activate any product or structural warranties included with the purchase.
Routine Maintenance
To protect your investment:
· Deep clean regularly to spot early signs of damage.
· Check and repair caulking/grout in wet areas.
· Monitor window trim and roof lines for potential water intrusion.
· Schedule pest control services to prevent infestations.
Stay Connected
Continue your relationship with your real estate advisor. They can be a great resource for trusted vendors, market updates, and advice if you ever plan to refinance or sell.
Final Thoughts
Buying a resale home in Texas is a journey full of critical decisions and timelines. From choosing the right home and negotiating terms, to navigating inspections and coordinating closing logistics, each phase builds on the last. By staying organized, informed, and connected to a trusted real estate professional, you can enjoy a confident and successful path to homeownership.
Whether you're planning to buy soon or just getting started with your research, understanding these phases helps you feel empowered through every step of the Texas real estate process.
👉 Click here or reach out to us directly to receive your free copy of our full Texas Home Buyer Checklist.
