Houston attracts buyers nationwide with its warm climate and no state income tax. With over 20K homes for sale in Houston, you have plenty of options. But buying a house here can be challenging. You must get preapproved, explore neighborhoods, and attend open houses.
With Houzeo, Houston’s best home buying website, managing your home search is simple. You can look through the latest listings in the Space City, save your favorites, schedule showings, and submit offers, all at your fingertips.
👉 Download the Houzeo mobile app to simplify your Houston home search.
At a Glance:
- Determine whether you’re purchasing a primary home, a vacation getaway, or a rental property, and choose the best neighborhoods in Houston.
- Set aside 30–45 days for mortgage pre-approval. Aim for a credit score of 620 or higher to stay competitive in Houston’s fast-paced market.
- Explore FHA, VA, or USDA loans, and apply for programs like the Texas State Affordable Housing Corporation (TSAHC) or the My First Texas Home program.
- Use platforms like Houzeo to search Houston homes by city, price, or must-have features like pools, waterfront access, or flood protection.
- Schedule inspections for the roof, HVAC, and plumbing.
- Expect 2%–5% in closing costs. After purchase, file for Texas’ Homestead Exemption to reduce your property taxes in Harris County, or your local appraisal district.
7 Steps for Buying a Home in Houston 🏜️
Buying a home in Houston doesn’t have to be complicated. Whether you’re just starting your search or are already browsing homes for sale in The Heights or Sugar Land, these 7 simple steps will help you move forward with confidence:
Step 1: Decide Your Homebuying Purpose
Whether you’re looking for a getaway or seeking an investment, knowing why you’re buying real estate in Houston is essential. It sets your expectations and helps you make smarter choices. Here’s what you should keep in mind:
- Primary Residence vs. Investment: Explore areas that match your lifestyle, whether it’s the urban bustle of Midtown or the suburban quiet of Pearland. If you’re investing, consider homes for sale in Spring Branch or Montrose, where rental demand is high.
- Short-Term or Long-Term: If you plan to live in the house for only a few years, focus on neighborhoods with strong resale value and upward market trends. You can check out homes for sale in Central Northwest, where the housing market continues to grow.
- Space Requirements: If you’re looking for larger lots or big backyards, consider suburban areas like Katy or Tomball. But if you prefer something easier to manage, condos or townhomes in the Galleria or Medical Center area can be a smart option.
Calculate the cost of living in Houston to get a detailed breakdown of expenses like housing, utilities, transportation, and more. 🏡
Step 2: Explore Financing Options
Before buying a house in Houston, it’s important to understand the financing options available for you to make an informed decision. Here’s what you need to do:
1. Prepare Financially
- Check Your Credit Score: Lenders will check your credit score to determine if you’re eligible for a loan. Aim for a score of 500+ for an FHA loan and 620+ for a conventional loan.
- Calculate Your Debt-to-Income (DTI) Ratio: Lenders often use your DTI ratio to assess how much home you can afford. Keep your DTI below 36%. It’s especially important in Houston, where property values can vary dramatically by neighborhood.
- Set Your Budget: Include taxes (Houston has no state income tax, but high property taxes), home insurance, and HOA fees if applicable.
👉 Use a Texas mortgage calculator to estimate how much property you can afford in the Lone Star State.
2. Explore Loans and Assistance Programs
Down payments in Houston usually range between 10% and 20%, but often vary based on the financing option you choose. You can also look for suitable Down Payment Assistance Programs (DPAs) to help you cover part or all of your down payment.
| Program | Description |
|---|---|
| FHA Loans | Require just 3.5% down and are ideal for first time home buyer in Houston. Flexible credit and income requirements make them widely accessible. |
| VA & USDA Loans | Offer 0% down with competitive interest rates. Great for veterans, active-duty military, and buyers in rural parts of Texas. |
| Texas State Affordable Housing Corporation (TSAHC) | Offers down payment assistance and mortgage credit certificates (MCCs) for eligible low- to moderate-income Texans and first-time buyers. |
| Texas Department of Housing and Community Affairs (TDHCA) | Provides assistance through programs like My First Texas Home and My Choice Texas Home, with grants and deferred forgivable loans. |
| Fannie Mae Sponsored Programs | Help low- and moderate-income Houston home buyers access affordable mortgage products tailored to their financial situation. |
Step 3: Get Pre-Approved for a Mortgage
The Houston housing market is competitive, so get a mortgage pre-approval to show sellers you’re a serious buyer. In fact, 86% of sellers prefer buyers who are pre-approved. It also helps you negotiate better, and reduces delays in the transaction.
Shop around to find the best Houston mortgage lenders—compare their programs, rates, and terms. Once you’ve narrowed down your options, get pre-approved by submitting documents like proof of income, credit history, bank statements, and your ID proof.
Step 4: Dive Into the Houston Market
Whether you’re looking at houses for sale in Montrose or anywhere else in the Space City, here’s how to buy smart:
- Online Listings: If you’re wondering how to buy a house, starting with online listings is a good first step. Use platforms like Houzeo to search homes for sale by price, zip code, and more. You can also filter for must-haves like a backyard, pool, etc.
- FSBO (For Sale By Owner) Homes: Explore FSBO listings, as they often offer more flexibility in price negotiations. This is because sellers aren’t paying 5% to 6% in agent fees.
Abilene is the nicest and cheapest place to live in Texas. The number of homes for sale in Abilene is on the rise, thanks to its safe neighborhoods and diverse job opportunities.
Step 5: Make a Competitive Offer
In Houston’s competitive housing market, homes tend to sell fast. Focus on real estate comps for a more accurate picture. Here’s a checklist to help you craft a strong offer:
- Seller’s Name and Address: Don’t forget the basics—include the seller’s legal name and property address.
- Price and Terms: Offer a price based on Fair Market Value (FMV) and comparable sales. In high-demand areas like The Heights or West University, you might need to offer above the asking price to stand out.
- Down Payment: In Houston, down payments usually range from 3% to 20%. In competitive markets like Montrose or Bellaire, a larger down payment can strengthen your offer.
- Earnest Money: Boost your earnest money deposit to show you’re serious, especially in hotspots like the Galleria, Oak Forest, or Memorial, where homes can go fast.
- Contingencies: Include protections like home inspection, financing, and wind mitigation contingencies. These safeguards protect you from issues like hurricane damage.
- Concessions: Request the seller to cover some closing costs. In Texas, it’s common to negotiate repairs after the inspection, such as roof issues, HVAC problems, or plumbing leaks.
- Deadline for Seller’s Response: Set a 24- to 72-hour deadline to encourage a prompt reply. This helps prevent delays and keeps you on track for Texas’ average 44-day closing timeline.
- Closing Costs: Expect closing costs around 2% to 5% of the home’s price, including title insurance, property taxes, and lender fees.
Step 6: Conduct Inspections and Appraisals
A standard home inspection in Texas should cover:
- HVAC System: Ensure the air conditioning can handle Houston’s heat and humidity. It is essential for year-round comfort.
- Plumbing: Check for leaks, corrosion, and water pressure issues, especially in Houston homes built before the 1980s. These houses are more vulnerable to damage from humidity and salt air.
- Electrical System: Verify everything is up to code and can handle power surges, especially during severe thunderstorms or hurricanes, which are common in the Houston area.
- Roof Condition: Assess for storm damage, missing shingles, or age-related wear. Homes in Houston are often exposed to heavy rains, high winds, and occasional hail, so roof integrity is crucial.
- Foundation and Structure: Look for cracks, moisture, or settlement issues, particularly in flood-prone or sandy-soil areas.
When you’re browsing homes, ensure that you get a wind mitigation inspection for hurricane risk. Also, if you have a condo over 30 years old and higher than two stories, make sure you get a Milestone Inspection for structural safety.
Once the inspection is complete, your lender will order a home appraisal to confirm the property’s market value. This step ensures the loan amount aligns with what the home is actually worth. It can impact final loan approval, especially if the appraisal comes in low.
Step 7: Close on Your Houston, TX Home
Almost there! Closing usually takes 30–45 days, from signing the contract to getting the keys in your hand. Here’s what you can expect:
- Final Walkthrough: Make sure all repairs have been completed, and the home is in the agreed-upon condition.
- Buyer Closing Costs: Expect to pay 2%–5% of the home price. This includes title fees and lender charges, plus prepaid taxes or insurance.
Once you sign the dotted line and transfer the escrow—congratulations, you’re officially a homeowner. Grab those keys and cue your happy dance! 🎉
What Should You Do After Closing?
Welcome home! Now it’s time to handle a few must-dos to protect your investment:
- File for Homestead Exemption: If the home is your primary residence, you can apply for Texas Homestead Exemption to reduce their property taxes. You could get up to a $50,000 reduction in taxable value—especially valuable in high-tax areas.
- Set Up Utilities: Get water, electric, internet, and trash service connected, often through FPL. And don’t forget pest control, especially in humid areas, where bugs are active year-round.
- Get Insurance: Homeowners insurance is required if you’re financing, and flood insurance may be needed in FEMA zones. Rates are higher in coastal areas like Surfside Beach, Freeport, and the Kemah Boardwalk due to hurricane risk.
- Home Maintenance Plan: Schedule AC tune-ups at least twice a year, clear gutters regularly, and inspect roofs for storm damage or algae buildup. Consider wind mitigation upgrades to reduce insurance costs.
How to Buy a House in Houston, TX Without a Realtor?
Start by researching neighborhoods and browsing listings on trusted sites like Houzeo. Then, schedule showings directly with sellers or their agents. You can also hire a real estate attorney to review contracts and handle legal details.
Next, get pre-approved for a mortgage, make an offer, schedule inspections, and negotiate repairs. With the necessary due diligence, you can buy a house without a Realtor.
Should You Buy a House in Houston, Texas?
Absolutely! Houston offers incredible value with no state income tax, a booming job market, and diverse housing options. Moreover, with more homes being sold below the list price, now’s the best time to buy a house in Texas.
Whether you’re drawn to Midtown’s nightlife or the Heights’ historic charm, Houston has it all. There’s a spot to match every lifestyle and budget. So if you’re on the hunt, check out our list of the best places to live in Texas!
