Buying in Dallas-Fort Worth: Before We Look at Houses, We Get You Ready

Being ready means two things are done before we open a single door.

Your financing. A pre-approval from a lender tells you, and every seller, what you can really spend. I'll introduce you to lenders I trust if you don't have one. A lender looks at your income, your debts, your credit and your savings, and the pre-approval they write is what makes a seller take your offer seriously. Getting it early also means there are no surprises about your monthly payment after you've found the house.

Our agreement. In Texas, every buyer signs an agreement before an agent can show them a home. It isn't optional, and it protects you. There are two kinds:

• A buyer-brokerage agreement makes me your agent. It spells out what I'll do for you, what you're responsible for as a buyer, and how I'm paid, which we go over together before you sign anything.
• A no-agency agreement is for someone who wants to see a home without being represented. It states clearly that the agent isn't representing them.

I'll walk you through every line of the agreement and answer every question first. You should never sign something you don't understand, and with me you won't.

A good search shows you fewer homes, and better ones. We start with how you want to live: the commute you'll accept, how much yard you want to care for, single story or two story, a condo, in town or on a few acres.

North Dallas is a 50-minute city. The cities across the metroplex are spread out, and depending on traffic in the area you live, it could take you 15 minutes to go 7 miles, or an hour, depending on which city you live in and where you work. From there I set up a search around your real criteria. When a home looks promising, I'll tell you what I notice beyond the photos: the age of the roof and mechanicals, how the lot drains, what the neighboring homes sold for, and what the property taxes look like. This conversation is held one on one when we first talk or meet to discuss the homes and areas you are considering.

If you're moving here from out of the area, we can tour by video, and I'll give you the context a listing can't, so you can narrow things down before you make the trip. See my relocation plan.

And before we write an offer, every person who is part of the decision will have seen the home and said yes. That one rule has saved my clients a lot of heartache.

Buying a home doesn't start with looking at houses. It starts with a financial plan and understanding the process, because the right house almost never goes to the person who saw it first. It goes to the person who showed up prepared.

My job as your REALTOR® is to guide you, explain every stage, represent you in the negotiation, and coordinate the process with the lender, the title company, the inspector, and everyone else involved, all the way to closing.

Step 1. Your prequalification or preapproval

Before we search, we need to know how much you can buy and, even more important, how much you want to pay each month. If you're financing, that's decided by a lender, the institution that lends the money. The lender will go over your income, employment, credit, monthly debts, bank statements, the money you have available for the down payment and closing costs, any documentation that applies in your case, your financial history, and which type of loan you qualify for.

Depending on your situation, we can look at different financing options: conventional, FHA, VA, down payment assistance, 0% down programs when they exist and you qualify, programs for medical professionals, programs for first-time buyers, options for people who are self-employed, and other programs depending on your profile. I connect you with lenders and go over what each option means with you.

That gives us five answers that organize everything else: how much you can buy, how much you want to pay each month, roughly how much money you'll need to close, which type of loan you'll use, and which price range we should search in. Try the mortgage and affordability calculators below to see your numbers.

Step 2. The buyer representation agreement

Before we look at homes together, we put our professional relationship in writing. The document explains that I represent you, which services I'll provide, in which area or market, how long the agreement lasts, whether the representation is exclusive or not, and what each of us is responsible for.

My responsibility is to make sure you understand what you're signing before we start. I explain the process and the documents you'll sign clearly, and I answer whatever you ask. You also receive the official information about how brokerage representation works in Texas.

Step 5. We start touring homes

When we find homes that fit what you're looking for, we schedule the showings. I want you to enjoy them, and at the same time my job is to guide you past the decor so you can see the potential of each space.

Here is what we look at:

• Structure. The overall condition, the roof, the foundation, the windows, and the floors.
• Systems. The age and state of the heating and air conditioning, the plumbing, and the electrical.
• Functional spaces. The layout, the flow, the kitchen, the bathrooms, and the common areas, and whether it suits how you live.
• Neighborhood and location. The surroundings, the distance to the places you go, and how easy it would be to resell.
• Possible red flags. Visible repairs and anything that could affect the value down the road.

None of this replaces a professional inspection. The inspector does an independent evaluation once we have a property under contract, and that comes further down.

Step 6. We find the right house

When you tell me "Amy, this is the one," we stop thinking like excited buyers and start thinking strategically.

Before we make the offer, we review the list price, the comparables, recent sales, the competition, days on market, any price reductions it's had, the condition, how the market looks right then, the seller's position when we have that information, and the chance of multiple offers. If there are multiple offers, we build a strategy that stands out while keeping your best interests first. My job is to guide you in putting together a competitive offer without losing sight of what's good for you.

Step 9. Executed contract

When buyer and seller reach an agreement and everyone signs correctly, we have an executed contract. From that moment, very important deadlines start running, and I keep the calendar with you so you know what has to happen and when.

Step 10. Earnest money and option fee

Earnest money is a deposit that shows you're serious about the purchase. The option fee is the negotiated amount tied to your right to terminate during the option period the contract sets. In the Texas residential resale contract, those funds generally go to the escrow agent within the time the contract specifies. Meeting those deadlines is extremely important.

Step 11. Option period and inspection

During the option period, we usually schedule the inspection with an independent professional inspector. Depending on the property, they may check the foundation, roof, plumbing, electrical system, heating and air, appliances, attic, windows, doors, exterior, interior, and safety items. Depending on what they find, they may recommend additional inspections by specialists.

Step 12. We go over the report together

No house is perfect, and not everything that shows up in an inspection means we need to ask the seller for something. We'll figure out what really matters. Depending on the circumstances and the contract, we can consider asking for repairs, credits, concessions, adjustments, or another negotiated solution. The seller can accept, reject, or negotiate what we ask for.

Step 13. The lender keeps working on your loan

While we handle the inspection and negotiation, your lender keeps processing the loan and will probably ask you for updated documents: pay stubs, bank statements, tax returns, employment verification, letters of explanation. Answer them quickly.

During this time, don't make big financial changes without checking with your lender first. Buying a car, opening new credit cards, buying furniture on credit, moving large amounts between accounts without documenting it, making big purchases, or changing jobs can affect your loan approval.

Step 14. Appraisal

If you're financing, the lender usually orders an appraisal. An independent appraiser puts a value on the property, and the lender uses it as part of their review to decide whether that value supports the financing. If a problem comes up with the appraisal, we review our options based on what the contract says.

Step 15. Title, survey, and documents

The title company opens the file and reviews everything related to the property's title. We also figure out which survey (the drawing of the lot and its boundaries) can be used, or whether a new one is needed. HOA documents, restrictions, easements, the title commitment, and other documents may come up. I keep the process organized and let you know when something needs your attention.

Step 21. Closing day

You sign the documents that complete the purchase and, if you're financing, the ones for your loan. The title company coordinates the closing.

Step 22. Funding and getting your keys

Signing and getting the keys don't always happen in the same minute. First the closing and funding process has to be completed, and funding is when the money is actually released. Once the transaction has closed and funded under the terms that apply, the house is yours and I hand you your keys.

What I do through all of these steps

I don't want you to feel like you're coordinating all of this on your own. I walk with you and coordinate the communication between you, the lender, the inspector, the seller's agent, the title company, the appraiser, and the closing. My job is to make sure that at every moment you know what's happening, what comes next, what you need to do, which deadlines we have, and what your options are when there's a decision to make.

If you also have to sell your current home, we don't treat it as two separate transactions. It's explained at the end of how I sell your home.

This describes my general process as a REALTOR® in Texas and is not legal, tax, or loan advice. The details of each transaction vary with the contract, the property, and the county. For legal, tax, or financing questions, please talk with the right professional.