Buying a Home in Houston, Step by Step

Buying a home in Houston takes 11 steps, and a financed purchase usually closes about 30 to 45 days after the contract is signed. You get pre-approved, sign a written buyer agreement, choose areas, tour, make an offer on the Texas Real Estate Commission (TREC) contract, inspect, then finish financing, title, insurance and closing.

The timeline at a glance

Step Usually takes
1. Pre-approval A day or two
2. Buyer agreement One meeting, before the first showing
3. Choose areas Set by you
4. Tour homes Set by you and the market
5. Offer Deadlines start at the effective date
6. Option period Commonly 7 to 10 days
7. Financing and appraisal Weeks 2 to 4
8. Title and survey First 2 to 3 weeks
9. Insurance and flood quotes During the option period
10. Closing and funding About 30 to 45 days after the effective date
11. After closing First weeks, then each spring

The 11 steps, with timing, tasks, documents and costs

Step 1. Set a budget and get pre-approved

  • How long: A day or two once your documents are in. The letter is valid 60 to 90 days.
  • What you do: Choose the lender you prefer, apply and compare Loan Estimates from at least two.
  • What we do: Introduce lenders if you ask and compare quotes with you. Compean Group is not a lender; Evan Compean, our founder and team lead, holds a loan officer license but does not originate loans.
  • Documents: Pay stubs, W-2s or tax returns, bank statements, ID; pre-approval letter.
  • Costs: Down payment: 3 percent on conventional first-time programs, 3.5 percent on FHA, none on eligible VA and USDA loans.

Go deeper: Houston mortgage calculator.

Step 2. Sign a written buyer agreement

  • How long: One meeting, before your first showing.
  • What you do: Read and sign. Texas Occupations Code 1101.563 requires it before an agent shows you a home (effective January 1, 2026).
  • What we do: Walk through it in English or Spanish. A showing-only agreement is non-exclusive, lasts up to 14 days and includes no advice; a representation agreement lets us advise and negotiate for you.
  • Documents: The written agreement: services, end date, exclusivity.

Go deeper: How buying a home works in Texas.

Step 3. Choose the areas that fit

  • How long: Set by you.
  • What you do: Compare commute, price, lot size, HOA dues and tax rate: about 2.1 percent of value inside the City of Houston, often higher in a MUD (municipal utility district) or PID (public improvement district).
  • What we do: Share neighborhood and ZIP guides with prices and distances, and set up a search in the Houston Association of REALTORS (HAR) MLS with alerts.
  • Costs: A MUD can add a few hundred to several thousand dollars a year on a $400,000 home.

Go deeper: ZIP code guides, neighborhoods by commute, Heights vs. Montrose, MUD and PID taxes. Area guides: Houston Heights, Montrose, Katy, Cypress, The Woodlands, Pearland, Sugar Land.

Step 4. Tour homes

  • How long: Set by you and the market.
  • What you do: See homes in person. Ask about the roof, foundation, drainage and any past water damage, and whether the seller's disclosure notice is ready.
  • What we do: Schedule showings, compare prices with recent sales and tell you the good and the bad about each home.
  • If nothing fits: We widen the search with HAR's Coming Soon listings, off-market homes and buyer-match letters: short printed letters to the owners of about 25 homes that fit what you want, sent only for real, active buyers. See what happens if you can't find a home you like.
  • Documents: Listing sheet, seller's disclosure notice, HOA documents, deed restrictions.

Go deeper: the seller's disclosure notice, buying new construction.

Step 5. Make an offer on the TREC contract

  • How long: Varies. Every deadline counts from the effective date, when the last party signs.
  • What you do: Choose price, option period, closing date, who pays for the title policy and survey, and which appliances stay.
  • What we do: Pull comparable sales, write and negotiate the offer, and calendar every deadline.
  • Documents: TREC One to Four Family Residential Contract (Resale), form 20-19, with addenda such as third-party financing.
  • Costs: Earnest money (often about 1 percent of the price) and an option fee (a few hundred dollars) are due to the title company within 3 days and credited at closing.

Go deeper: the option period, new construction contracts.

Step 6. Inspect during the option period

  • How long: Commonly 7 to 10 days. It ends at 5:00 p.m. local time on the last day.
  • What you do: Book general and termite inspections first, then specialists (foundation, sewer line, roof, pool, stucco). Ask for repairs, a credit or a price cut, or terminate.
  • What we do: Read the reports with you, put your requests in an amendment and negotiate before the deadline.
  • Documents: Inspection reports, repair amendment; TREC's termination notice (form 38-8) if you end the contract.
  • Costs: General and termite inspections run about $500 to $1,200; an invasive stucco inspection $1,000 to $1,500.

Go deeper: the option period in Texas.

Step 7. Finish financing and the appraisal

  • How long: The appraisal usually lands in weeks 2 to 4; the Third Party Financing Addendum sets the financing deadline.
  • What you do: Answer lender requests quickly, and ask before you change jobs or take on new debt.
  • What we do: Give the appraiser comparable sales and repair amendments. If the value is low: ask for a reconsideration of value, meet in the middle, pay cash for the gap, or end the contract if your addendum allows.
  • Documents: Financing addendum, appraisal, loan conditions. FHA and VA appraisers can require repairs.
  • Costs: Appraisal and lender fees appear on your Loan Estimate.

Go deeper: closing costs in Texas.

Step 8. Review the title commitment and survey

  • How long: The commitment usually arrives in the first 2 to 3 weeks; the contract sets your deadline to object.
  • What you do: Read the commitment and survey and object in writing before the deadline. In a MUD or PID, read the seller's notice of the district's tax rate and bonds.
  • What we do: Compare the commitment with the survey before your deadline. Evan Compean is a partner in a Houston title company; we disclose it in writing, and you are never required to use it.
  • Documents: Title commitment, survey with T-47 or T-47.1, MUD or PID notice, HOA resale certificate.
  • Costs: Texas has no transfer tax, and the state sets title premiums, so every title company charges the same. A new survey, if needed, costs a few hundred dollars.

Go deeper: surveys and the T-47, MUD and PID taxes.

Step 9. Line up insurance, including flood quotes

  • How long: Get quotes during the option period; the first year of homeowners insurance is paid at closing.
  • What you do: Get homeowners and flood quotes for each address you are serious about; roof age can decide whether a carrier writes a policy. Look the address up on FEMA's Flood Map Service Center and the Harris County Flood Control District's MAAPnext map.
  • What we do: Provide the tools and information: official map links, an explanation of the seller's disclosure notice flood questions and a reminder to ask for any elevation certificate.
  • Documents: Insurance quotes, seller's disclosure notice, elevation certificate if one exists.
  • Costs: Homeowners insurance of $3,000 to $6,000 a year is common in 2026, plus a separate 1 to 2 percent wind and hail deductible. Flood quotes run from a few hundred to several thousand dollars a year.

Go deeper: flood zones, elevation certificates and flood insurance.

Step 10. Close and fund

  • How long: About 30 to 45 days after the effective date on a financed purchase. Signing takes under an hour; funding is the same or next business day.
  • What you do: Compare the Closing Disclosure with your Loan Estimate and confirm wire instructions by phone with the title company before sending money.
  • What we do: Go through the Closing Disclosure line by line and do the final walkthrough with you.
  • Documents: Closing Disclosure (due at least three business days before closing), settlement statement, deed.
  • Costs: Plan on 2 to 5 percent of the price: lender fees, appraisal, lender's title policy, recording, prepaid interest and first escrow deposits. Seller credits can cover part, within your loan program's cap.

Go deeper: closing costs in Texas for buyers and sellers.

Step 11. After closing

  • How long: Apply as soon as you qualify. The Harris County appraisal district (HCAD) takes regular applications January 1 to April 30.
  • What you do: File your homestead exemption with the county appraisal district, with a Texas ID showing the home's address. A buyer who moves in after January 1 can receive it for the rest of that year if the previous owner did not. Choose an electricity provider.
  • What we do: Stay on call, and each spring send past clients comparable sales for a property tax protest.
  • Documents: Form 50-114 (Application for Residence Homestead Exemption); keep your survey, title policy and closing statement.
  • Costs: Filing is free. The exemption removes $140,000 of value from school district taxes and, from the year after you first qualify, caps appraised value growth at 10 percent a year.

Go deeper: the homestead exemption and protest calendar.

Buying a home in Houston: FAQ

How long does it take to buy a home in Houston?

Once a contract is signed, a financed purchase usually closes in 30 to 45 days and a cash purchase in about two weeks. The home search itself depends on you.

Do I need to be pre-approved before I tour homes?

Yes. Houston sellers expect a pre-approval letter with every offer. Unlike a pre-qualification, it means the lender has verified your credit, income and assets. It takes a day or two and stays valid 60 to 90 days.

Do I have to sign an agreement with my agent before I see homes?

Yes, since January 1, 2026. Texas Occupations Code 1101.563 requires a written agreement before an agent shows you a home. A showing-only agreement is non-exclusive, lasts up to 14 days and includes no advice.

How much cash do I need to buy a home in Houston?

Plan for the down payment (3 to 3.5 percent on many loans), closing costs of 2 to 5 percent, earnest money of about 1 percent, an option fee and $500 to $1,200 for inspections.

What inspections should I get in Houston?

A general inspection and a termite inspection. Add a stucco inspection on stucco homes, a foundation evaluation if floors slope or doors stick, and a sewer scope on older homes.

Do I need flood insurance in Houston?

Lenders require it in FEMA high-risk zones such as A and AE. Elsewhere it is optional, but the Harris County Flood Control District reports that about 68 percent of structural damage reported after Harvey was outside the mapped 100-year floodplain. We provide the map links and information; get quotes during the option period.

Can I buy a home in Houston with an ITIN?

Yes. Several lenders offer mortgages to buyers who file taxes with an ITIN. Compean Group is not a lender and does not originate loans, but we introduce you to lenders who work with these programs.

Do I need my own agent to buy new construction?

The builder's on-site sales agent represents the builder. We represent buyers of new construction: we register you at your first visit, review the builder's contract and negotiate incentives such as rate buydowns and upgrade credits.

How much are property taxes on a Houston home?

Inside the City of Houston the combined rate is about 2.1 percent of appraised value before exemptions; many suburbs run 2 to 2.5 percent, and newer subdivisions with a MUD can exceed 3 percent.

What should I check at the final walkthrough?

Confirm the agreed repairs were done, appliances work, and you have every key, garage remote and mailbox key. Keys pass at funding unless the contract says otherwise.

Sources

  1. Texas Real Estate Commission, buyer representation requirements for 2026 and resale contract, form 20-19. Checked October 30, 2026.
  2. Consumer Financial Protection Bureau, What is a Closing Disclosure? Checked October 30, 2026.
  3. Texas Comptroller, Property Tax Exemptions; Harris Central Appraisal District, exemptions for homeowners; Texas Tax Code Section 11.42(f). Checked October 30, 2026.
  4. Harris County Flood Control District, Get Flood Insurance. Checked October 30, 2026. Map tools are linked in Step 9.
  5. Our Houston guides, updated October 29, 2026. Typical durations, option fees and costs reflect our Houston transactions and are negotiated in every contract. This is general information, not legal, tax or lending advice; confirm details with an attorney, tax professional or lender.

Related

Start your Houston purchase with us

Call or text (832) 777-3904, email evan@thecompeangroup.com or use the contact page. We work in English and Spanish. The team has sold 1,000+ homes in 15 years. Selling first? Request a free home valuation or see Selling a Home in Houston, Step by Step.

Updated October 30, 2026.