Questions Buyers Ask Sharon
The buyer questions Sharon answers before you spend a dollar.
Sixty-seven questions, grouped the way buyers actually live them: getting started, finding the right property, making an offer, inspections, appraisal and financing, and closing and afterward. Sharon Yeary, Associate Broker with eXp Realty, answers in plain English, and where the answer depends on a lender, a program, or a county office, she points you straight to it.
Part One
Getting Started
How much home can I afford?
The short answer comes from your lender: a preapproval that verifies income, debts, and credit and sets your loan ceiling. The practical answer adds the real monthly costs, property taxes, insurance, HOA dues, and utilities, which in Texas can move the number meaningfully. Your broker and lender together should get you to a comfortable payment, not just a maximum loan.
How much money do I need to purchase a home?
Plan on the down payment plus closing costs, which together commonly run 3% to 6% of the price for many first-time programs, up to 20% or more depending on the loan. You will also want cash for earnest money, option money, moving expenses, and a few months of cushion. Your lender will itemize the prepaid costs, and your broker will help you budget the rest.
Do I need 20% for a down payment?
No. Many Texas buyers put down 3% to 5% with conventional or FHA programs, and some VA and USDA loans allow zero down for qualified buyers. Under 20%, you will usually pay private mortgage insurance until you build equity. Your lender can show you the trade-off between a smaller down payment plus PMI and a larger one without it.
What loan programs might be available?
Conventional, FHA, VA, and USDA loans cover most buyers, and Texas has its own suite of down-payment-assistance programs for first-time and qualifying buyers. Self-employed buyers have bank-statement and alternative programs. Which one fits depends on your credit, income, and down payment, so ask your lender to map the options for your profile.
What credit score do I need?
Most conventional loans want a 620 or better, FHA can work into the low 600s with compensating factors, and VA and USDA have their own guidelines. Higher scores generally mean lower rates, which is real money over a 30-year loan. Check your score before you shop so you know which programs are realistic for you.
Should I speak with a lender before looking at homes?
Yes, absolutely, before you tour anything. A lender conversation tells you your budget, your rate range, and any credit fixes you need, which keeps you from falling for homes outside your real range. Every seller and listing agent will also ask whether you are preapproved.
What is the difference between prequalification and preapproval?
Prequalification is a quick, unverified estimate of what you might afford. Preapproval is a lender's written commitment based on verified income, credit, and assets, and it is what sellers take seriously. Get preapproved before you make offers, and keep the letter current.
Can I buy a home if I am self-employed?
Yes, self-employed buyers qualify all the time, but lenders typically want two years of tax returns and may count income differently, including depreciation and deductions. Some lenders offer bank-statement loans that use deposits instead of net income, usually at a higher rate. Talk to a lender early so your paperwork is ready.
Can I use gift funds for my down payment?
Yes, most programs allow a gift from a family member or other qualified donor for all or part of the down payment and closing costs. The gift must be documented with a gift letter and the funds traced, and the donor usually cannot be the seller or a party to the sale. Your lender will explain the exact rules for your program.
Are there down-payment-assistance programs?
Texas offers several down-payment-assistance and mortgage-credit programs for first-time and qualifying buyers, and some local authorities and nonprofits add their own. They vary by income limits, county, and funding availability. Ask your lender and your broker which ones you qualify for, because the details change.
Should I sell my current home before purchasing another one?
It depends on whether your current equity is needed for the next down payment. If it is, selling first is the classic path, but you risk a timing gap; if it is not, you can buy first and avoid two moves. Sharcom's guaranteed cash offer and Trade-In program lets you buy first without a sale contingency, which solves the timing puzzle many move-up buyers face.
How long does the buying process usually take?
From offer to closing, a typical Texas contract runs 30 to 45 days, and the search itself can take weeks or months depending on your market and how specific you are. Preapproval, inspections, appraisal, and underwriting all fit inside that window. Your broker should set the timeline expectation early so your lease and move line up.
Part Two
Finding the Right Property
Choosing a neighborhood: rely on objective, public sources for schools, safety, and neighborhood data, the school district's boundary maps, crime statistics from the city and county, and your own commute test. A neighborhood decision should be built on verified facts that fit your family's needs, never on protected characteristics. Sharcom Realty Group serves all clients equally and asks everyone to make these choices the same way.
How do I decide which neighborhood is right for me?
Start with the non-negotiable filters: commute time, school needs, and budget, then layer in the lifestyle factors you care about, parks, walkability, community amenities, and future buildout nearby. Drive the neighborhood at rush hour and on weekends, and ask a local broker which blocks feel different. A neighborhood is a long-term decision, so give it as much thought as the house.
What can I purchase within my preferred price range?
Your broker builds a realistic search around your preapproved amount and the taxes, insurance, and HOA costs in each neighborhood, because those shift what a monthly payment buys. That turns the question into concrete homes in concrete communities. You will see what is genuinely in range, not just the listing price.
Should I buy a new-construction home or a resale home?
New construction gives you modern systems, builder warranties, and your choice of finishes, often in growing master-planned communities; resale gives you established neighborhoods, mature trees, and usually more negotiating room. Each carries different inspection, warranty, and timeline considerations. Walk both with your broker before you commit to one direction.
Do I need my own REALTOR® when purchasing from a builder?
Yes, it is almost always in your interest. The builder's agent represents the builder, and the price and incentives are typically the same whether you are represented or not, but your own agent protects your interests in the contract and negotiations. Tell the sales office about your agent on your first visit, before you sign anything.
How old are the roof, HVAC system and water heater?
These three systems carry the big-ticket replacement costs, so know their ages and conditions before you offer. A roof or HVAC near the end of its life is a negotiation item, a credit, or a reason to adjust price. Your inspector will date them precisely, and the seller's disclosures can answer a lot of it up front.
How much are the property taxes?
The county appraisal district sets the taxable value and the local taxing entities set the rates, so the property tax bill depends on the specific address, not the listing price. Texas has no state income tax, but effective property tax rates average around 1.4% of value, which is real money every month. Ask your broker for the actual current bill and check the homestead exemption timing.
Is the property in a MUD, PID or special taxing district?
Many Texas communities, especially newer master-planned ones, sit inside municipal utility districts or public improvement districts that add fees on top of the property tax bill. Those numbers appear in the tax records and the title commitment, and they vary significantly by community. Always ask for the current MUD or PID rate and any bond payments before you budget the monthly cost.
How much are the HOA dues, and what do they cover?
HOA dues vary wildly by community, from a few hundred to several thousand dollars a year, and they cover anything from gates and landscaping to pools, trails, and events. The covenants tell you what the association maintains and what it enforces, and the resale certificate from the HOA lists current dues and any special assessments. Ask for both documents before you make an offer, not after.
Has the property previously flooded?
Start with the Texas disclosure forms and the seller's answers, then check the FEMA flood maps, the flood insurance requirement, and the flood history for the address. Past flooding is not always disqualifying, but you need to know the risk and the insurance cost before you commit. A broker who works the area knows which blocks flood and which do not.
Is flood insurance required?
If the home sits in a FEMA special flood hazard area and you have a federally backed loan, flood insurance is required, and it can be a meaningful monthly cost. Outside the designated zones it is elective, but many Texas buyers buy it anyway. Verify the flood zone status and get an insurance quote during the option period, not at closing.
Are there deed restrictions?
Most Texas subdivisions recorded in the last several decades carry deed restrictions that control things like architecture, parking, fences, and uses. Your title commitment and the HOA documents spell them out. Read them if you care about remodeling, a shop, or running a business from home.
Can the property be rented?
Sometimes yes, sometimes no, and it depends on the covenants, HOA rules, and any lender requirements on the property. Master-planned communities increasingly regulate rentals, lease lengths, and tenant screening. If you may rent it later, confirm the rules in writing before you buy.
Are short-term rentals permitted?
Short-term rentals on the major booking platforms are often restricted or banned by HOA covenants, city ordinance, or deed restrictions, and the rules change. Never assume a home can be listed on a rental platform just because others in the area do it. Verify with the city and the HOA in writing if this matters to you.
What future development is planned nearby?
Check the city and county planning departments, which post zoning cases, plat filings, and future road plans, and ask the seller and the neighbors what they have heard. A new school or park can lift value; a high-traffic corridor can change the character of a street. This is exactly the local knowledge a long-tenured broker brings.
How can I research schools, crime information, traffic and commute times?
Use the objective public sources: the school district's own boundary maps and report cards, city and county crime statistics and the police department's open data, the city's traffic and mobility pages, and a commute test at the actual hours you will drive. A careful agent will direct you to these objective sources rather than steering you loosely by neighborhood reputation. Choose a neighborhood on verified facts about schools, safety, and commute that fit your family's actual needs, never on protected characteristics.
Part Three
Making an Offer
How much should I offer?
An offer price should be built from comparable sales, the home's condition, and the market's current pace, not a round number or a guess. In competitive Texas markets, a strong preapproved offer near asking with good terms often wins over a higher price with weak terms. Your broker will show you the comps and help you find the number that is both fair and competitive.
Can I offer below the asking price?
Yes, when the data supports it: the home has sat longer than normal, needs visible work, or is priced above its comparable sales. In a strong seller's market, a low offer can be a waste of time when the home is well priced. Let the comps, not the asking price, set your starting number.
How can we determine whether the home is overpriced?
Compare the asking price to the closed sales of true comparable homes, adjusted for condition, updates, and lot, and to what similar homes are actively listed for. If the asking price sits well above both, it is overpriced for the market. Your broker can also tell you how long similar homes are taking to sell, which shows whether buyers agree.
What comparable sales support the offer?
Your broker pulls the recent closed sales of similar homes, same neighborhood or nearby, with similar size, age, and condition, sold in the last few months. Those comps are the evidence behind an offer, and sellers respond to a well-documented number. Ask to see the comp sheet with every offer you make.
How much earnest money should I provide?
Earnest money in Texas commonly runs 1% to 3% of the price, held in escrow and credited at closing. More earnest money signals seriousness and can matter in multiple-offer situations, but it is money at risk if you default. Your broker will help you size it to your comfort and the competition.
How much option money should I provide?
Option money is the separate Texas fee you pay the seller for the right to terminate during the option period, commonly a modest amount depending on the market. It is non-refundable, while your earnest money is refundable if you terminate within the option period. It is a small amount that buys a lot of protection.
How long should the option period be?
Seven to ten days is typical, enough for a general inspection and a first look at the big-ticket items. Older homes, homes needing renovation, or homes in flood-prone or high-wind areas may warrant longer. Every extra day costs you option money and gives the seller more time off the market, so size it to the risk.
Should I ask the seller to pay closing costs?
It is a common request, and sellers often accept it in exchange for a higher price or in balanced markets. In Texas, seller-paid closing costs can be written into the contract within lender limits, which can let you keep more cash in savings. Your lender will tell you what the program caps allow.
Can I ask the seller to buy down my interest rate?
Yes, seller-paid rate buydowns are a popular Texas concession, especially in higher-rate markets, and they lower your monthly payment for the early years or the life of the loan depending on the structure. The cost is paid by the seller from sale proceeds and negotiated like any other term. Your lender can structure it; your broker can negotiate it.
What contingencies should be included?
At minimum, financing and appraisal protections plus the option period for inspections, and more when the situation calls for it, like a sale contingency or a survey. Each contingency protects you but also weakens your offer in competition. A good broker helps you keep the protections you need and drop the ones you do not.
How do I compete against multiple offers?
Go in with your strongest terms, not just your strongest price: full preapproval, solid earnest money, a reasonable option period, a closing date that suits the seller, and a personal letter if it genuinely fits. A clean, low-risk offer often wins against a higher number with strings attached. Your broker will read the situation and help you size each term.
Should I waive the appraisal or inspection?
Rarely, and never without understanding the risk. Waiving the inspection means buying unknown condition issues; waiving the appraisal means covering any gap with cash if the home appraises low. In very competitive markets, buyers sometimes shorten option periods or cap repair requests instead, which protects more value. Your broker should show you what each waiver actually costs if something goes wrong.
What personal property is included in the sale?
Whatever the contract says is included: typically the house and attached fixtures, with appliances, window treatments, and extras as negotiated and listed on a personal property addendum. Never assume the refrigerator, washer and dryer, or the lovely light fixtures stay unless they are in writing. Go through the list room by room before you finalize.
When does an offer become a binding contract?
In Texas, when the seller signs the offer and all parties receive notice of the acceptance, which is why every date, addendum, and blank matters before signatures. Until then, either side can walk away without consequence. Your broker will walk you through your contract's terms so you know exactly what binds you and when.
Part Four
Inspections, Appraisal and Financing
Do I need a home inspection?
Yes, virtually always, and the option period exists so you can do it before you are locked in. For a few hundred dollars you get a professional inventory of the home's systems and condition, and the findings are your negotiating leverage. Most buyers waive this protection only in rare, well-understood circumstances.
What inspections should I order?
The general home inspection is the base. From there, Texas buyers commonly add termite or WDI, foundation, sewer line or plumbing, roof, pool, and specialist checks for older or unusual homes. In Houston and Katy, flood and drainage questions and a wind or storm review can matter. Your broker helps you match inspections to the home's age, systems, and area.
Should I inspect a newly constructed home?
Yes. A builder's warranty is not a substitute for an independent inspection, and new homes have their own issues: settling, HVAC commissioning, caulking and flashing details, and finish work. Inspect at the pre-drywall stage if you can, and again before the final walk-through. Have your own agent involved from the start with new construction.
What happens if the inspection reveals problems?
You go back to the table inside the option period and negotiate: repairs, a credit, a price reduction, or a decision to walk away if the issues are bigger than you want. The seller can accept, counter, or decline, and you can terminate and recover your earnest money if you cannot reach an agreement. The inspection finding is only as good as the negotiation that follows.
Can I renegotiate after the inspection?
Yes, that is exactly what the option period is for. Within the window, you can request repairs or credits for the items the inspection surfaces, and both sides negotiate in writing. After the option period, renegotiation gets much harder because you have accepted the condition. Put your requests in with enough time to negotiate before the deadline.
Which repairs should concern me the most?
Structural, foundation, roofing, electrical, plumbing, and HVAC issues are the ones that carry real cost and safety weight, along with anything involving mold, water intrusion, or an active leak. Cosmetic items are negotiation points, not deal-breakers. Your inspector ranks the severity; your broker helps you prioritize what to push for.
What happens if the property does not appraise?
If the appraisal comes in below the contract price, the lender funds on the appraised value and the difference has to be covered: you bring more cash, the seller lowers the price, or you split it. Many Texas contracts have an appraisal clause that lets you terminate or renegotiate, but how it works depends on your specific contract language. Your agent will tell you your options before you sign.
What is an appraisal waiver?
In limited circumstances, usually low loan-to-value or special refinance situations, a lender may waive the appraisal and rely on automated valuation, which removes one condition from your offer and speeds closing. A waiver is a lender decision, not something you can demand, and it does not mean the home is worth the price. Your broker can tell you whether it is on the table for your situation.
Why did my monthly payment change?
Because several inputs move between preapproval and closing: the final interest rate, the exact loan amount, taxes and insurance as escrows, and points or lender fees. The Closing Disclosure, which you receive at least three business days before closing, is the final word. Compare it line by line with your Loan Estimate and ask about anything that moved.
What are lender fees, prepaid expenses and escrow reserves?
Lender fees are the loan costs: origination, underwriting, appraisal, and credit report. Prepaid expenses are items like mortgage interest to the end of the month and the first year of homeowners insurance. Escrow reserves are the cushion your lender holds for future taxes and insurance. All three appear on your Closing Disclosure, and all three are part of your cash to close.
When should I lock my interest rate?
Lock when you are comfortable with the current level and your rate-lock window covers your expected closing date, typically 30, 45, or 60 days. If rates are rising, locking early protects you; if they are falling, floating can pay off but carries risk. Ask your lender about float-down options so you can move if the market does.
What should I avoid doing before closing?
Avoid changing jobs, opening credit, financing a car, co-signing, or moving large sums between accounts without telling your lender. Lenders re-verify credit and employment near closing, and one new payment can change your qualification. If something big happens financially, call your loan officer first, before it becomes a problem.
Can changing jobs or purchasing a car affect my loan approval?
Yes, both can. A new job changes income verification and may require employment history, and a car payment adds debt that can push your debt-to-income ratio over the limit. Lenders re-pull credit in the final days and that new loan shows up. Wait until after closing for the big purchases, and talk to your lender before any job change.
When will I receive the Closing Disclosure?
By federal law, your lender must give you the Closing Disclosure at least three business days before closing. Review it closely: loan terms, cash to close, and the costs compared to your Loan Estimate. Your broker and agent will help you read it, because this is the document that defines your deal on paper.
Part Five
Closing and Afterward
How much money will I need at closing?
Your cash to close is the down payment plus closing costs, prepaids, and escrow reserves, minus your earnest money and any seller concessions, and it is stated exactly on the Closing Disclosure. In Texas that commonly runs from low single digits to 20% or more of the price depending on your loan. Confirm your exact number with your lender before closing week.
Can closing costs be rolled into the loan?
Some closing costs can be financed, meaning they are added to the loan balance, within program limits, but that increases the amount you borrow and your monthly payment. Regulators and lenders cap how much can be financed for most loans. Your lender will show you the actual cost of financing versus paying upfront.
Do I need to attend closing in person?
Usually yes, but Texas closings can often be handled remotely through the title company with proper signing arrangements. The exact requirement depends on the title company, the contract, and your lender. Your broker coordinates the logistics so closing day goes smoothly whether you are in the room or on a screen.
When will I receive the keys?
At closing, once the deed is recorded and the funds are confirmed, the seller hands over the keys, typically through the possession terms in your contract. In most cases, possession happens on closing day or the date written in the contract. Confirm the exact arrangement before closing so your moving plans line up.
What happens during the final walk-through?
Usually within a day or two of closing, you walk the home to confirm it is in the agreed condition: empty, broom clean, repairs completed, and systems working as expected. It is your last chance to catch issues before you own the home. If something is wrong, your broker addresses it before you sign, not after.
What should I check during the final walk-through?
Work through the contract: agreed repairs completed, appliances and fixtures present, water and electricity working, no new damage, and the home left clean and empty except for what you are buying. Test the faucets, lights, and garage door, and look in closets and the attic for surprises. Bring your contract and a list, and take photos.
When should I transfer utilities?
Schedule utilities in your name for closing day or the possession date, including power, water, gas, internet, and trash service, and confirm the seller's schedule for canceling theirs. A gap means starting your new home without power or water. Do it a week ahead and confirm the day before.
Will my property taxes increase after I purchase?
Likely, because Texas appraises homes and the taxable value can reset higher after a sale, and tax rates change each year at the taxing entities' discretion. The homestead exemption, if you apply in time, caps appraisal increases for your primary residence. Ask your broker and the appraisal district what to expect for your first full year.
How do I file for a Texas homestead exemption?
Apply with the county appraisal district for your property's county, using the forms they publish, and do it as soon as you move in, because the deadline and the benefit depend on your closing date and occupancy. The exemption reduces your taxable value and caps future appraisal growth. Your broker can point you to the right office, and the appraisal district will walk you through it.
When will my first mortgage payment be due?
Usually the first day of the second month after closing, depending on your closing date and the lender's schedule, and your first payment includes interest for the days between closing and the first due date. The exact date is on your closing documents and your lender's welcome letter. Set up autopay and a reminder so you never start a mortgage late.
Should I purchase a residential service contract or home warranty?
It can be a smart hedge on an older home or one whose systems you could not fully assess, and sellers often buy one for the buyer as a concession. Read what it actually covers, because exclusions and service fees vary widely. Weigh the premium against the age of the home's systems, and do not let it replace a real inspection.
What records should I keep after closing?
Keep the full closing file: the deed, the Closing Disclosure, your title insurance policy, the settlement statement, the inspection report, and any warranty documents, in a safe place plus a digital copy. You will need them for taxes, refinancing, insurance claims, and the next sale. Your title company provides most of these; ask for the complete set at closing if anything is missing.
Talk to Sharon
Your first home starts with your first question.
Sharon Yeary has guided first-time buyers and move-up families through the Houston, Katy, and Dallas-Fort Worth markets, and she will tell you the truth about what you can afford before you ever fall in love with a house. Ask her anything on this page, or bring her your own question.
Sharon Yeary
Associate Broker with eXp Realty
Texas real estate experience representing buyers from first preapproval to first mortgage payment.
Ask a buyer question of your own.
Tell Sharon where you are: preapproval, touring, or under contract, and she will reply with the straight buyer answer for your situation.
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