Step 1: Assess Your Financial Readiness

Before you start house hunting, it’s essential to evaluate your financial situation to ensure you’re prepared for the costs of homeownership. Here’s how to do it:

1. Review Your Credit Score

Your credit score impacts your mortgage interest rate and loan eligibility.

• 620+ – Typically required for conventional loans.
• 580+ – Minimum for FHA loans (lower credit scores may require a higher down payment).
• 740+ – Ideal for securing the best mortgage rates.

👉 Tip: Check your credit report for errors and pay down high-interest debt to improve your score before applying for a mortgage.

2. Calculate Your Debt-to-Income (DTI) Ratio

Lenders use your DTI ratio to determine how much home you can afford.

• Formula: (Monthly Debt Payments ÷ Gross Monthly Income) × 100
• Aim for: Below 43% to qualify for most loans; under 36% is even better.

👉 Tip: Pay off credit card balances and reduce other debts to improve your DTI before applying for a mortgage.

3. Save for a Down Payment

The amount you need depends on your loan type:

• Conventional Loan: 3%-20% down
• FHA Loan: 3.5% down
• VA Loan: 0% down (for eligible military members)
• USDA Loan: 0% down (for rural areas)

👉 Tip: Consider down payment assistance programs like TSAHC or TDHCA if you need help with upfront costs.

4. Budget for Closing Costs

Closing costs typically range from 2-5% of the home price and include:

• Loan origination fees
• Title insurance
• Appraisal and inspection fees
• Prepaid taxes and homeowners insurance

👉 Tip: Ask your lender for an estimate early in the process so you can plan accordingly.

5. Get Pre-Approved for a Mortgage

A mortgage pre-approval shows sellers you’re a serious buyer and helps you understand your price range. To get pre-approved, you’ll need:
✅ Proof of income (W-2s, pay stubs, tax returns)
✅ Employment verification
✅ Credit report check
✅ Bank statements and assets

👉 Tip: Work with a lender experienced in the Austin market to understand local trends and financing options.

Step 2: Research First-Time Homebuyer Programs

As a first-time homebuyer in Austin, you may qualify for programs that provide down payment assistance, grants, or lower mortgage rates. Understanding these options can save you thousands of dollars and make homeownership more affordable. Here’s what you need to know:

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1. Texas State Affordable Housing Corporation (TSAHC)

TSAHC offers two major assistance programs for first-time buyers in Texas:

• Homes for Texas Heroes Program – For teachers, police officers, firefighters, and healthcare workers.
• Home Sweet Texas Home Loan Program – Available to any qualifying first-time buyer.

✅ Benefits:
✔ Down payment and closing cost assistance (grants & forgivable loans)
✔ Fixed-rate mortgage options
✔ No requirement to live in a rural area

👉 Tip: You don’t have to repay the grant portion, making it a great option for buyers who need upfront financial help.

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2. Texas Department of Housing and Community Affairs (TDHCA)

TDHCA offers first-time buyer assistance through:

• My First Texas Home Program – Low-interest loans with up to 5% down payment assistance.
• My Choice Texas Home Program – Open to repeat buyers as well.

✅ Benefits:
✔ Lower interest rates
✔ Down payment and closing cost assistance
✔ Available for homes statewide, including Austin

👉 Tip: To qualify, you must meet income and purchase price limits, which vary by county.

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3. FHA, VA, and USDA Loans

If you don’t qualify for Texas-specific programs, federal loan programs can still help:

✅ FHA Loan (Federal Housing Administration) ✔ 3.5% down payment (with a credit score of 580+)
✔ More lenient credit requirements
✔ Ideal for first-time buyers with lower credit scores

✅ VA Loan (Veterans Affairs) ✔ 0% down payment
✔ No private mortgage insurance (PMI)
✔ Lower interest rates
✔ Available to military service members, veterans, and their families

✅ USDA Loan (U.S. Department of Agriculture) ✔ 0% down payment
✔ Low mortgage insurance costs
✔ Available for homes in rural and some suburban areas around Austin

👉 Tip: Some areas near Austin qualify for USDA loans, such as Dripping Springs, Bastrop, and parts of Hutto.

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4. Austin-Specific First-Time Homebuyer Programs

The City of Austin offers additional financial assistance:

• Austin Homebuyer Assistance Program (AHAP) – Up to $40,000 in down payment assistance for eligible buyers.
• Habitat for Humanity Austin – Affordable homeownership opportunities.

✅ Benefits:
✔ Help with down payment and closing costs
✔ Special programs for lower-income buyers

👉 Tip: These programs often have income limits, so check the latest requirements on Austin’s housing website.

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Next Steps

1️⃣ Check eligibility requirements for each program.
2️⃣ Get pre-approved with a lender that offers these programs.
3️⃣ Apply for assistance early, as funds may be limited.

Would you like help finding local lenders that offer these programs in Austin?

Step 3: Define Your Home Needs & Budget

Now that you understand your financing options, it’s time to determine what kind of home you need and what you can afford in Austin. This step ensures you stay within your budget while finding a home that fits your lifestyle.

1. Decide on Must-Haves vs. Nice-to-Haves

Before you start house hunting, make a list of your priorities. Consider factors like:

✅ Must-Haves (Non-Negotiables)

• Number of bedrooms & bathrooms
• Home size (square footage)
• Garage or parking needs
• Proximity to work, schools, or public transit
• Pet-friendly home or yard space
• Safe neighborhood with low crime rates

⭐ Nice-to-Haves (Wish List Items)

• Open floor plan or modern kitchen
• Smart home features (security system, automation)
• Pool or outdoor entertaining space
• Energy-efficient appliances
• Home office or extra storage space

👉 Tip: Prioritize your must-haves to stay focused, but keep an open mind on nice-to-haves in case you need to compromise.

2. Research the Best Austin Neighborhoods for First-Time Buyers

Austin’s real estate market can be competitive, but some neighborhoods offer more affordable options for first-time buyers. Here are a few top areas:

📍 Affordable & Up-and-Coming Areas:

• Manor – Newer homes, growing community, and lower prices.
• Pflugerville – Family-friendly with good schools and amenities.
• Hutto – Small-town feel with affordable new builds.
• Buda/Kyle – Just south of Austin with lower home prices.

📍 Closer to Downtown (More Expensive but Convenient):

• South Austin (78745, 78704) – Trendy, with great restaurants and nightlife.
• North Austin (78758, 78753) – Close to major employers like Apple and The Domain.
• East Austin (78702, 78721) – Hip and growing, but prices are rising.

👉 Tip: Consider future appreciation potential when picking a neighborhood. Areas with new developments, schools, and infrastructure improvements tend to grow in value.

3. Use a Mortgage Calculator to Estimate Monthly Payments

Your mortgage payment includes:
🏠 Principal & Interest – Based on your loan amount and interest rate
🏠 Property Taxes – Higher in Austin, usually 1.8-2.5% of home value
🏠 Homeowners Insurance – Varies based on home value and location
🏠 PMI (Private Mortgage Insurance) – If your down payment is less than 20%

Example Calculation:

• $350,000 home price
• 5% down payment ($17,500)
• 6.5% interest rate
• ~$2,800 per month (including taxes & insurance)

👉 Tip: Use an Austin-specific mortgage calculator to get an accurate estimate based on local tax rates.

4. Consider Additional Costs of Homeownership

Owning a home comes with more than just a mortgage. Factor in these ongoing costs:

💡 Utilities – Electricity, water, gas, and internet
🔧 Maintenance & Repairs – Budget 1-2% of home price per year
🛡 HOA Fees – If buying in a community with a homeowners association
🌿 Lawn Care or Landscaping – If your home has a yard

👉 Tip: Avoid maxing out your budget on just the mortgage. Keep some financial cushion for unexpected repairs.

Next Steps

✅ Make a list of your must-haves and preferred neighborhoods.
✅ Use online tools to estimate monthly payments for different home prices.
✅ Talk to your lender about realistic loan approval amounts based on your budget.

Would you like recommendations on specific first-time buyer-friendly homes in Austin?

Step 4: Find a Real Estate Agent

Working with a knowledgeable real estate agent is crucial for first-time homebuyers in Austin. A great agent will help you navigate the competitive market, find homes within your budget, and negotiate the best deal.

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1. Why You Need a Real Estate Agent

Buying a home is one of the biggest financial decisions you’ll make, and having an expert on your side ensures you don’t make costly mistakes. Here’s how an agent can help:

✅ Access to Listings – They provide real-time MLS access, often before homes hit public sites like Zillow.
✅ Market Expertise – They know the best neighborhoods, upcoming developments, and home values.
✅ Negotiation Skills – They can negotiate pricing, closing costs, and repairs in your favor.
✅ Paperwork & Contracts – They handle legal documents, contingencies, and deadlines.
✅ Guidance Through the Process – They explain inspections, financing, and closing details so you’re never confused.

👉 Tip: As a buyer, you don’t pay your agent’s commission—the seller does! There’s no downside to working with a professional.

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2. How to Choose the Right Real Estate Agent

Not all agents are the same! You want an agent who is experienced in working with first-time homebuyers and understands the Austin market.

🔎 What to Look For in an Agent:

• 📍 Local market knowledge – Familiar with Austin’s best neighborhoods and first-time buyer programs.
• ⭐ Proven experience – Check reviews, past sales, and client testimonials.
• 🏡 Understands first-time buyers – Should be patient and explain everything clearly.
• 🔥 Negotiation skills – Can help you secure a great deal, especially in multiple-offer situations.

👉 Tip: Avoid choosing an agent just because they’re a friend or family member. Pick someone based on their experience and expertise in the Austin market.

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3. Questions to Ask When Interviewing an Agent

Before choosing an agent, interview at least two or three to compare. Here are some important questions to ask:

• How many first-time buyers have you worked with?
• What neighborhoods do you specialize in?
• What’s your approach to helping buyers in a competitive market like Austin?
• Do you have recommendations for mortgage lenders, inspectors, and title companies?
• How do you communicate with clients (text, phone, email)?

👉 Tip: Choose an agent who is responsive and makes you feel comfortable. You’ll be working closely together for weeks or months!

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4. Get a Buyer’s Representation Agreement

Once you find an agent you trust, they may ask you to sign a Buyer’s Representation Agreement (BRA). This contract outlines:

• The agent’s responsibilities to you.
• Your commitment to working with them (typically for a set time).
• That the agent is working in your best interest, not the seller’s.

👉 Tip: Read the agreement carefully and don’t hesitate to ask questions before signing.

Next Steps

✅ Interview at least two or three agents.
✅ Ask about their experience with first-time buyers.
✅ Choose an agent who is responsive and knowledgeable.
✅ Sign a Buyer’s Representation Agreement if you’re ready to move forward.

Step 5: Start House Hunting

Now that you’ve secured financing and chosen a real estate agent, it’s time for one of the most exciting parts of the process—finding your first home! To make the most of your search, you’ll need a solid strategy to find homes within your budget, tour properties effectively, and avoid common pitfalls.

1. Set Up MLS Alerts for New Listings

Austin’s real estate market moves fast, so staying ahead of new listings is key. Your agent will set up MLS (Multiple Listing Service) alerts so you get notified when homes that fit your criteria hit the market.

✅ What to Include in Your Search Filters:

• Price range (based on your pre-approval)
• Preferred neighborhoods
• Minimum bedrooms and bathrooms
• Home type (single-family, condo, townhome)
• Features (garage, yard, updated kitchen, etc.)

👉 Tip: Be flexible with your criteria—perfect homes are rare, and minor updates can always be made later.

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2. Attend Open Houses & Schedule Private Showings

🔑 Open Houses – Great for casually exploring homes and getting a feel for different neighborhoods.
📆 Private Showings – More in-depth tours scheduled through your agent, giving you time to inspect the home closely.

✅ What to Look for When Touring Homes:

• Overall Condition – Are there visible signs of damage or repairs needed?
• Floor Plan & Layout – Does it fit your needs, or would major renovations be required?
• Storage Space – Closets, cabinets, and garage space should meet your lifestyle.
• Natural Light & Ventilation – Is the home well-lit and comfortable?
• Noise & Surroundings – Check for busy streets, noisy neighbors, or other potential concerns.

👉 Tip: Take notes and pictures of each home to help you compare later. It’s easy to forget details after multiple showings!

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3. Compare Home Prices & Market Trends in Austin

Austin’s housing market can be competitive, so understanding local pricing trends is crucial.

📍 Current Market Conditions:

• Average home price in Austin: ~$450,000 (varies by area)
• Median days on the market: ~30 days (hot homes sell even faster)
• Multiple offers common? Yes, especially in popular neighborhoods

✅ How to Stay Competitive:

• Act fast – If you love a home, don’t hesitate to make an offer.
• Know the market value – Your agent will provide comparable sales (“comps”) to determine a fair offer.
• Consider expanding your search – Look at up-and-coming neighborhoods for better deals.

👉 Tip: In a competitive market like Austin, you may need to be prepared to offer at or slightly above asking price for desirable homes.

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4. Take Notes & Rank Your Favorite Homes

After viewing multiple homes, it can be overwhelming to remember details. Use a simple ranking system:

🏡 Home #1: 9/10 – Loved the layout and yard, but small kitchen.
🏡 Home #2: 7/10 – Great location, but needs major updates.
🏡 Home #3: 8/10 – Move-in ready but slightly over budget.

✅ Key Questions to Ask Yourself:

• Can I see myself living here for at least 5 years?
• Does this home fit my needs and lifestyle?
• Is it within my budget, including taxes and maintenance?
• Is the neighborhood safe and convenient?

👉 Tip: After narrowing down your top choices, schedule second showings before making a decision.

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Next Steps

✅ Set up MLS alerts with your agent.
✅ Attend open houses and private showings.
✅ Take notes & compare homes carefully.
✅ Narrow down your top choices before making an offer.

Would you like help with a checklist for home tours or guidance on what neighborhoods best fit your budget?

Step 6: Make an Offer & Negotiate

Once you’ve found a home you love, it’s time to make an offer. In Austin’s competitive market, crafting a strong offer is key to standing out. Your real estate agent will guide you through this process, but understanding the steps will help you feel confident in your decision.

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1. Review Comparable Sales (Comps) to Make a Competitive Offer

Your agent will analyze comparable homes (comps) that have recently sold in the same neighborhood to determine a fair offer price.

📊 What Comps Consider:
✅ Homes with similar square footage, bedrooms, and bathrooms
✅ Sales from the last 3-6 months (most recent is best)
✅ Homes in similar condition (new vs. fixer-upper)
✅ Any unique upgrades or features

👉 Tip: Don’t rely on listing prices alone—some homes are overpriced, while others are priced low to attract multiple offers.

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2. Submit a Strong Offer

Your offer is a formal contract that outlines the terms of the purchase, including:

✅ Offer Price – Based on comps, market conditions, and your budget.
✅ Earnest Money Deposit – Typically 1-3% of the home price, held in escrow to show you’re serious.
✅ Contingencies (Protections for You)

• Financing Contingency: Ensures you can secure a mortgage.
• Appraisal Contingency: Protects you if the home is appraised lower than the offer price.
• Inspection Contingency: Allows you to negotiate repairs or back out if major issues are found.
  ✅ Closing Timeline – Usually 30-45 days, but can be shorter or longer.
  ✅ Seller Concessions (if applicable) – You can ask the seller to cover part of your closing costs.

👉 Tip: In a competitive market, consider offering a higher earnest money deposit or being flexible on closing datesto make your offer more attractive.

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3. Be Prepared for Counteroffers & Negotiations

💬 If the seller accepts: Congrats! You’re one step closer to homeownership.
💬 If the seller counters: They may ask for a higher price, different terms, or removal of certain contingencies.
💬 If your offer is rejected: Don’t panic—your agent will help you adjust and submit another offer if needed.

✅ Common Negotiation Strategies:

• Increase your offer slightly (if within budget).
• Waive minor contingencies (but never skip an inspection!).
• Offer a leaseback if the seller needs extra time to move.
• Write a personal letter to the seller (this can help in some cases).

👉 Tip: Don’t overpay just because you’re emotionally attached to a home—stay within your budget.

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4. Once Your Offer is Accepted, You’re Under Contract!

When the seller accepts your offer, both parties sign a purchase agreement, and you enter the option period (usually 5-10 days). During this time, you’ll complete inspections and finalize financing.

🚀 What Happens Next?
✅ Deposit your earnest money into escrow.
✅ Schedule a home inspection ASAP.
✅ Work with your lender to finalize your mortgage.

👉 Tip: Your offer isn’t final until the inspection and appraisal are completed—if any red flags appear, you can renegotiate or back out.

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Next Steps

✅ Work with your agent to review comps and determine a strong offer price.
✅ Include contingencies to protect yourself.
✅ Be prepared for negotiations.
✅ Once accepted, move quickly on inspections and financing.

Step 7: Get a Home Inspection & Appraisal

After your offer is accepted, the next step is to ensure the home is in good condition and that the price aligns with its value. This involves two key steps: a home inspection and an appraisal. Both are crucial to protecting your investment.

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1. Schedule a Home Inspection

A home inspection is a detailed evaluation of the property’s condition, performed by a licensed inspector. This helps uncover potential issues that may not be visible during a showing.

✅ What the Inspection Covers

A typical inspection includes:
🏡 Structural Issues – Foundation, walls, roof, attic
🚰 Plumbing System – Pipes, water heater, leaks
⚡ Electrical System – Outlets, circuit breakers, wiring
🌬 HVAC System – Heating, ventilation, air conditioning
🛠 Appliances – Stove, dishwasher, washer/dryer (if included)
🚪 Doors & Windows – Seals, security, proper operation
🐜 Pest or Mold Issues – Signs of termites, mold, or water damage

👉 Tip: Attend the inspection if possible! The inspector will explain issues and answer any questions you have.

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2. Review the Inspection Report & Negotiate Repairs

After the inspection, you’ll receive a detailed report outlining the home’s condition. Some minor issues are normal, but major problems might require renegotiation.

✅ Three Ways to Handle Inspection Findings:
1️⃣ Request Repairs – Ask the seller to fix significant issues before closing.
2️⃣ Negotiate Seller Credits – Instead of repairs, the seller may offer a credit to cover future fixes.
3️⃣ Walk Away – If serious problems exist and the seller won’t negotiate, you can exit the deal (if you included an inspection contingency).

🔴 Major Red Flags That May Be Deal Breakers:

• Foundation issues (cracks, shifting, uneven floors)
• Roof damage (leaks, missing shingles, aging materials)
• Plumbing problems (leaks, low water pressure, sewer issues)
• Electrical hazards (old wiring, overloaded circuits, code violations)
• Mold or termite infestations

👉 Tip: Don’t stress over small cosmetic issues, but major structural or safety concerns should be addressed before moving forward.

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3. The Home Appraisal Process

Once the inspection is complete, your lender will order an appraisal to determine the home’s fair market value. This ensures the bank isn’t lending more than the home is worth.

📊 What Determines the Home’s Appraised Value?

• Comparable Sales – Recently sold homes in the same area.
• Home’s Condition – Upgrades, renovations, or damages.
• Size & Features – Square footage, number of bedrooms/bathrooms, lot size.
• Market Trends – Supply, demand, and Austin’s real estate market conditions.

🔴 What Happens If the Home Appraises for Less Than Your Offer?
If the appraised value is lower than your purchase price, you have a few options:
1️⃣ Negotiate a lower price with the seller
2️⃣ Cover the difference with extra cash (if possible)
3️⃣ Dispute the appraisal (request a second opinion with better comps)
4️⃣ Back out of the deal (if you included an appraisal contingency)

👉 Tip: Appraisal gaps are common in hot markets like Austin. If you’re offering over asking price, be prepared to cover the difference or negotiate.

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Next Steps

✅ Schedule a home inspection ASAP (within the option period).
✅ Review the report and negotiate repairs if needed.
✅ Ensure the appraisal meets the purchase price to secure financing.
✅ Decide if you want to move forward, renegotiate, or walk away.

Step 8: Secure Financing & Finalize the Deal

Now that the home inspection and appraisal are complete, it’s time to finalize your mortgage and prepare for closing. This step ensures that all financial and legal requirements are met before you officially take ownership of your new home.

1. Lock in Your Mortgage Interest Rate

Interest rates fluctuate daily, so once you’re satisfied with the terms of your loan, you should lock in your rate to prevent any surprises before closing.

✅ Things to Consider Before Locking Your Rate:

• Current market rates – Are they stable or rising?
• Loan type & terms – Fixed or adjustable-rate mortgage?
• Closing timeline – Rate locks are valid for a set period (30-60 days).

👉 Tip: Ask your lender about “float-down” options, which allow you to get a lower rate if rates drop before closing.

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2. Submit All Required Documents to Your Lender

Your lender will need a final round of financial verification before approving your loan. Be prepared to provide:

📑 Commonly Requested Documents:
✅ Pay stubs (last 2-3 months)
✅ Bank statements (last 2-3 months)
✅ Tax returns (last 2 years)
✅ Employment verification
✅ Proof of assets (stocks, retirement accounts, etc.)

🚨 DO NOT:
❌ Make large purchases (like a car or furniture)
❌ Apply for new credit cards or loans
❌ Change jobs or income sources

👉 Tip: Any major financial changes could impact your mortgage approval. Wait until after closing to make big purchases.

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3. Review Loan Estimate & Closing Disclosure

You’ll receive two important documents before closing:

📄 Loan Estimate (LE) – Issued shortly after applying for the loan, detailing your estimated loan terms, interest rate, and closing costs.

📄 Closing Disclosure (CD) – Issued 3 days before closing, summarizing your final loan terms, closing costs, and monthly payment.

✅ Key Things to Check in Your Closing Disclosure:

• Loan amount & interest rate – Matches your agreement?
• Monthly mortgage payment – Within your expected budget?
• Closing costs – Any unexpected fees?
• Escrow details – Includes taxes & insurance?

👉 Tip: Compare the Closing Disclosure to your original Loan Estimate. If anything seems off, ask your lender to explain before signing.

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4. Purchase Homeowners Insurance

Lenders require homeowners insurance to protect your investment. This policy covers damage from fires, storms, theft, and more.

🔍 How to Choose a Policy:
✅ Compare multiple insurance providers for the best rate.
✅ Ensure coverage includes replacement cost (not just market value).
✅ Check if flood or additional coverage is needed in your area.

👉 Tip: Some lenders allow you to bundle homeowners insurance with auto insurance for discounts.

Next Steps

✅ Lock in your mortgage rate.
✅ Provide final financial documents to your lender.
✅ Review your Closing Disclosure for accuracy.
✅ Purchase homeowners insurance before closing.

Step 9: Closing Day – Finalize the Purchase & Get Your Keys!

Congratulations! You’re just one step away from becoming a homeowner. Closing day is when you officially sign the final paperwork, transfer funds, and receive the keys to your new home. Here’s what to expect and how to prepare.

1. Do a Final Walk-Through of the Home

Before heading to closing, you’ll do a final walk-through with your agent to make sure the home is in the agreed-upon condition.

✅ Check for These Issues:

• Any repairs the seller agreed to make are completed.
• Appliances, HVAC, plumbing, and electrical systems are working properly.
• No new damage has occurred since your last visit.
• The home is clean and free of seller’s personal belongings.
• Agreed-upon fixtures & appliances (e.g., refrigerator, light fixtures) are still in place.

🚨 If you find an issue:
Your agent will negotiate with the seller for last-minute fixes or credits before closing.

👉 Tip: Bring your purchase agreement to the walk-through to confirm everything matches what was agreed upon.

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2. Bring Required Documents & Funds to Closing

At closing, you’ll need to provide some documents and pay your remaining closing costs.

📑 What to Bring to Closing:
✅ A government-issued photo ID (driver’s license or passport).
✅ Closing Disclosure (reviewed in Step 8).
✅ Cashier’s check or proof of wire transfer for closing costs.
✅ Proof of homeowners insurance (policy declaration page).
✅ Any additional lender-required documents (if applicable).

📌 Common Closing Costs (2-5% of home price):
💰 Down payment (if not already paid).
💰 Loan origination fees (charged by the lender).
💰 Title insurance & title search fees (protects you from ownership disputes).
💰 Escrow fees (handling funds during the transaction).
💰 Property taxes & homeowners insurance prepayment (usually required at closing).

👉 Tip: Your lender will provide exact closing costs in the Closing Disclosure 3 days before closing.

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3. Sign the Closing Paperwork

The closing appointment takes place at a title company or attorney’s office. You’ll sign multiple documents, including:

📄 Final Loan Documents – Confirms your mortgage terms.
📄 Closing Disclosure – Outlines your final costs.
📄 Deed of Trust – Transfers ownership to you.

👉 Tip: Take your time reading through all documents. Ask questions if anything seems unclear.

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4. Receive the Keys & Celebrate!

Once all paperwork is signed and funds are transferred:

🎉 Congratulations, you’re officially a homeowner! 🎉

Your real estate agent or title company will hand over the keys, and you can move in at your convenience (unless the seller has a leaseback agreement).

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Bonus Tips for a Smooth Closing:

✅ Double-check wire instructions – Be on alert for wire fraud scams when sending funds.
✅ Arrive on time – Closing appointments take 1-2 hours.
✅ Change your locks – For added security, rekey the locks after moving in.
✅ Set up utilities – Transfer electricity, water, gas, and internet before move-in day.

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Next Steps

✅ Do a final walk-through before closing.
✅ Bring required documents & payment to closing.
✅ Sign the final paperwork and receive the keys.
✅ Move in and enjoy your new home!

Bonus Tips for First-Time Homebuyers in Austin

Buying a home is a big financial commitment, and there are a few additional factors that first-time buyers in Austin should consider. These key insights will help you avoid unexpected surprises and ensure a smooth transition into homeownership.

1. Check Commute Times: Austin Traffic Can Be Unpredictable

Austin is a fast-growing city, and traffic congestion is a real challenge, especially during rush hours. Before finalizing your home purchase, test your commute to work, school, or other frequent destinations.

🚦 Key Things to Consider:
✅ Rush hour congestion – I-35, MoPac (Loop 1), and US-183 can get heavily backed up.
✅ Alternative routes – Toll roads (SH-130, SH-45) can save time but add toll fees.
✅ Public transportation – CapMetro buses and rail are options, but coverage is limited.
✅ Future road projects – Check city plans for expansions or improvements in your area.

👉 Tip: Use Google Maps or Waze to check estimated commute times at different hours of the day to see if a location fits your lifestyle.

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2. Understand Property Taxes: Texas Has No State Income Tax, But Property Taxes Are Higher

Texas does not have a state income tax, which is great for take-home pay. However, it makes up for this with higher property taxes, which can be a significant ongoing cost for homeowners.

📊 What to Know About Austin Property Taxes:
✅ Travis County property tax rate: Around 1.8% – 2.5% of the home’s assessed value.
✅ Williamson & Hays County taxes (Round Rock, Pflugerville, Buda) can be similar or slightly lower.
✅ School district taxes – Vary by location and can impact total property tax costs.
✅ Homestead Exemption – If the home is your primary residence, you can apply to reduce taxable value and lower your tax bill.

👉 Tip: Use Travis County Appraisal District’s (TCAD) website to estimate property taxes on any home you’re considering.

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3. Plan for Future Expenses: Maintenance, HOA Fees, and Utilities

Owning a home comes with ongoing costs beyond the mortgage payment. Be sure to budget for these expenses so you’re financially prepared.

🔧 Home Maintenance

• Expect to spend 1-2% of the home’s value per year on maintenance.
• Older homes may require higher upkeep (roof, plumbing, HVAC).
• Regular costs: Lawn care, pest control, HVAC servicing, minor repairs.

🏘 Homeowners Association (HOA) Fees

• If you buy in a planned community or condo, HOA fees may apply.
• Fees cover amenities, landscaping, and community maintenance.
• Costs vary: $30–$500/month, depending on the neighborhood.
• Ask for HOA rules upfront to avoid surprises!

💡 Utilities & Other Monthly Bills

• Electricity (Austin Energy, Bluebonnet Electric): $100–$250/month.
• Water & Trash (Austin Water): $50–$150/month.
• Gas (Texas Gas Service): $30–$100/month.
• Internet & Cable: $50–$150/month.
• Homeowners Insurance: $100–$200/month, depending on location & coverage.

👉 Tip: Ask the seller for past utility bills to get an estimate of expected monthly costs before buying.

Ready to buy your first home in Austin? Let’s connect and make the process smooth!