A home by the beach is a dream for many people, and there are some fantastic beach destinations in Texas. Is a beach home something you are thinking about? It’s a great investment and one that will be enjoyed by all the family. We recommend that before you make your decision, you check out Texas real estate specialists NextHome on the Coast, who always have a great inventory of beach homes in prime locations.
But what is the process of buying a beach home in Texas, and what do you need to know to make sure you don’t make an expensive mistake? That’s what we want to help you with within this article, so let’s talk about where and how to buy a beach house in Texas and fulfill your dream.
Choose Your Location
Finding the right location for your dream Texas beach home is the first step. Perhaps there is a Texas beach town you have already decided on, one you are familiar with and enjoy visiting? Or you might want to check out South Padre Island, which is popular with holiday home buyers and those who are looking for a quieter life. Once you’ve settled on your ideal location, it’s time to think about the less pleasant aspects – the financial ones. You now need to look at your financial situation and see if purchasing a beach home is viable.
Assess Your Financial Situation
Before you get pre-approved for a mortgage – more of that in a moment – you need to know that you have enough for the required down payment. Usually, a mortgage provider will ask you to put down at least 20% of the purchase price of the property. The average house price in Texas is around $300,000, which would require a $60,000 down payment.
There are many homes – even in beach towns – that are considerably less expensive, so don’t let this put you off. Work out your budget, and you know how much you can afford to pay for your Texas home. There are schemes that help you pay less than 20%, but these usually require you to take out some form of insurance and do not necessarily save you much money in the long run. It is best to make sure you have the 20% deposit.
Get Pre-approved for a Mortgage
With mortgage rates changing due to various factors, you need to talk to a lender and get pre-approved for a mortgage. This will help the transaction to be completed more quickly and smoothly.
The mortgage lender will take into account your personal financial situation, including your income, outgoings, and your debt-to-income ratio. The latter is usually set at below 36% to qualify for pre-approval. You may find that you need to be pre-approved for sellers to agree to show you their home, so it’s not something you should ignore. Now let’s move on to the next step, which is finding a real estate agent to help you.
Find a Texas Real Estate Agent you Trust
We have already linked to a reputable specialist in Texas beach homes, so that’s a good place to start. Talk to them about your dream home, show them your pre-approval letter, and they will work with you to find the right home in your budget. A good real estate agent will make life a lot easier, as buying a house can be a stressful event. Next comes the exciting bit – looking at properties.
Start Looking at Beach Houses
The Texas real estate market is a strong one, and there are always plenty of properties for sale. You may be surprised at the number of beachfront properties on the market. Whether you are looking for a house or a condo, there is plenty to get through at this stage, so we recommend you take the details of the properties the agent finds for you within your budget and spend some time with your partner or family putting together the ones you want to visit.
Now you go back to your real estate agent, who will arrange viewings for you. Once you find that house that grabs you and makes you feel it’s for you, you’re ready to enter the final stages.
Make an Offer on a House that You Love
Making an offer is done via the estate agent. Typically, a Texas home stays on the market for no longer than 60 days, so you need to move fast. Your real estate agent will be able to put together an offer that the seller can consider in detail. They will also be able to advise you as to whether your desired offer is sensible and likely to be accepted – or otherwise.
Bear in mind that beachfront homes are desirable. If you really love a house or apartment you have seen, it’s in an ideal spot, and it’s perfect for you, be prepared to pay full price as if you don’t, somebody else will.
Have the House Inspected and Appraised
This is the part where disappointment can come into play. Your mortgage provider will require you to have your potential new home inspected and appraised. The appraiser will look at all aspects of the property and put together a detailed report and valuation. This is worth the fee you will have to pay, as even the most beautiful house can have hidden problems that are costly to deal with.
If the appraisal says the house is priced too high, you need to negotiate with the seller. Some appraisals pitch the price too low, which also requires negotiation. Let’s hope yours comes back bang on value, as you’re now ready to close the deal.
Close the Deal – You Own a Texas Beach House!
When all the forms are signed, the boxes are ticked, the money transferred, and you are the proud owner of a beautiful Texas beach home! You’ve achieved your dream, and we hope that this article has inspired you to go ahead and start your search for a Texas coastal home