How Does the Texas Home Buying Process Work Step by Step?

Buying a home in Texas is one of the most meaningful financial decisions a family will ever make. The process is more straightforward than most people fear — but only when you know the steps and the timing. Here is the full picture.

Step 1: Get Pre-Approved for a Mortgage

Before you tour a single home, get a mortgage pre-approval from a licensed lender. This is not the same as a pre-qualification — a pre-approval involves a review of your credit, income, assets, and debt-to-income ratio and results in a letter stating how much a lender is willing to lend you. In the Boerne and Hill Country market, sellers often will not entertain an offer from an unqualified buyer. Buyer closing costs in Texas typically run 2% to 6% of the purchase price on top of your down payment, so factor that into your budgeting from the start.

Step 2: Choose Your Real Estate Agent and Sign a Buyer Representation Agreement

Under current Texas real estate law and TREC rules, buyers who work with a licensed agent must sign a written Buyer Representation Agreement before being shown homes. This agreement documents the scope of the relationship and how the agent will be compensated. Choose an agent who knows your target area well, has experience with the TREC contract forms, and communicates the way you want to be communicated with.

Step 3: Search, Tour, and Select a Property

Once pre-approved and represented, you begin actively searching and touring homes. In today's Texas market, with inventory at approximately five months of supply statewide as of Q1 2026, buyers have meaningful time to evaluate options without the frantic pace of 2021 and 2022. Use this window wisely. Tour homes critically, not emotionally, and evaluate location, school district, lot, and resale value alongside the finishes and floor plan.

Step 4: Make an Offer Using a TREC Contract

Your agent writes an offer using the current TREC One to Four Family Residential Contract (version 20-18 as of 2025). The offer includes the purchase price, earnest money amount, option period length and fee, financing terms, closing date, and any addenda. Earnest money and option fees are typically due to the title company within one to three business days of the effective date. Your agent negotiates on your behalf until both parties reach a signed agreement.

Step 5: Option Period and Inspections

Once the contract is executed, the clock starts on your option period. Order a general home inspection immediately — most option periods are five to seven calendar days, and specialty inspections (foundation, roof, HVAC, pool) need to be scheduled quickly. If the inspection reveals concerns, your agent can negotiate repairs, credits, or a price reduction during this window. If the home does not meet your standards, you can terminate in writing and receive your earnest money back, forfeiting only the option fee.

Step 6: Loan Processing and Appraisal

While the option period runs, your lender begins formal loan processing. This includes the appraisal, title search, underwriting review, and any conditions that need to be cleared before the loan can close. Texas uses a wet funding model, meaning funds are disbursed on the day of closing. The average time from contract to close in Texas is roughly 30 to 45 days for a conventional loan.

Step 7: Final Walk-Through and Closing

Before closing, you will complete a final walk-through of the property to confirm its condition. At least three business days before closing, you will receive the Closing Disclosure from your lender, which outlines all final costs. On closing day, you sign 30 to 50 documents at the title company, wire your cash to close, and receive your keys. Welcome home.

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