Back HomeA checklist of essential documents you need to buy a Texas home
Texas, just as in most states in the country, has managed to weather the storm caused by the threat of COVID-19. Sales are exploding in the Lone Star State to the point where demand is sharply overtaking supply.
If you are intent on securing real estate here, you have to be prepared, not only for the financial requirements but also for competing with other buyers in the wake of the low housing inventory. The process of buying a house in Texas can be expedited by knowing the essential documents related to this endeavor and attending to these promptly. Doing so gives you a distinct edge over other homebuyers and results in a quicker journey toward closing the deal with the seller.
The Texas homebuyer’s document requirements
Take note of these important papers as you prepare to purchase your Texas home:
Buyer representation agreement
If you decide on taking on the services of a local real estate agent, this should be the first document you’ll want to secure. The buyer representation agreement essentially binds a buyer to a brokerage of their choice. It details the expectations and goals to be reached by both the home buyer and real estate broker. Other than assuring that this binds the buyer into working exclusively with the agent and their brokerage firm, it also builds trust in the working relationship between the two parties.
Purchase agreement
This is a legal contract that binds two separate parties in a buyer/seller transaction. It should contain counteroffers or contingencies made in the process of negotiations that have been agreed to by both the buyer and the seller.
Here are several integral parts of the purchase agreement:
- Important schedules like target closing or sales dates, as well as deadlines on up to when the offer will be in effect;
- Final sales price;
- How much earnest money to deposit; and
- Responsibilities and roles of each party in the real estate transaction.
Seller’s property disclosure
This document outlines the flaws and problems a property has that can affect its value. This ensures that both seller and buyer are on the same page when it comes to the condition of the home. It also takes off the liability of the seller from all stated defects in the document if the buyer accepts the existence of said defects.
Home inspection report
The home inspection report is the result of a thorough evaluation of the property for sale by a professional home inspector. It details findings regarding the actual condition of the home, as well as possible repair and maintenance costs that the buyer may have to shoulder once they own it.
Property appraisal report
This particular document states the current value of a property based on several factors. These factors may include the current real estate market in the area as well as the condition of the home.
Insurance policies
There are two kinds of insurance policies to secure – the title insurance policy and the homeowner’s insurance policy.
You’ll want to shield yourself from any potential legal problems concerning your potential home’s title, which is why a title insurance policy is a must. Securing this document ensures that nobody can make claims to the property for sale.
Meanwhile, the homeowner’s insurance policy gives you the assurance that should any covered fixture, appliance, or section of the home require repairs or replacement, you can take advantage of valuable services from the concerned service providers either for free or at a discounted rate. This document needs to be reviewed and updated annually.
Closing disclosure
If you secured a mortgage to buy your home, your chosen lender will hand over to you the closing disclosure which details all the agreed terms of your loan, from the breakdown of fees to dates of closing and payment.
Property deed
This written contract finalizes and legalizes the transfer of property ownership to the homebuyer.
Storing important documents
Even before starting the home buying process, it is best to have a binder for all these property-related documents. Choose a waterproof one and store this in an area of your home where it can be easily retrieved should an emergency in your home happen.
Receipts are also important documents so keep these, along with the above-mentioned papers.
Finally, make sure to back up your hard copies with photocopies, as well as digital ones that you can save on your PC and/or on secure external storage (e.g., a flash drive or cloud storage). In case you lose your physical papers for any reason, rest assured that you will still have existing copies that you can pull out at any given time.
If you’re buying a house in Texas, one of the top-notch real estate teams in the state can help you. Berkshire Hathaway HomeServices Caliber Realty has the expertise and the commitment to serve you as you go through your real estate journey. Just call 979.694.8844 or send an email to sales(at)bhhscaliber(dotted)com.
