9 Steps to Buy a House in Dallas, TX

By Stephanie Ross

The homeownership rate in the United States is expected to rise to 64% in 2024, the highest level in 13 years. Moreover, according to NAR, 4.09 million homes were sold in 2023. Of these, 32% were bought by first-time buyers. 

This means more and more Americans are enjoying the benefits of homeownership. And why won’t they? Homeownership provides stability and builds wealth through appreciation.  

While the market may have shifted recently, 2024 is still a great time to invest in your future. Here are some steps to help you buy a house in Dallas, Texas.

How to Buy a House in Dallas, TX, in 9 Steps

Here are the steps to buy a home in Dallas:

  1. Set a Budget: Calculate how much down payment you can afford, monthly mortgage payments, property taxes, and other housing-related expenses.

    Before diving into house hunting, check your financial readiness:
  • Use Affordability Calculators: Estimate your monthly payments and overall costs.
  • Review Your Credit Score: A higher score often means a lower interest rate on the mortgage.
  • Show Stable Employment: Lenders prefer borrowers with secure jobs and steady incomes.
  • Maintain a Good Debt-To-Income Ratio (DTI): Aim for a DTI below 36% for a seamless loan approval process.

 

  1. Research Areas: Dallas offers a distinct flavor, from vibrant nightlife to peaceful parks. Before you finalize a place, research if the city has a widespread public transport network, amenities, and schools.

 

  1. Find a Platform: Real estate platforms can help you find properties at affordable prices. They offer a vast selection of properties, user-friendly interfaces, and filtering options to narrow your search. If you are looking for properties on a budget, you can find condos for sale in Dallas under 100k.

 

  1. Get Pre-Approved for a Mortgage: Pre-approval for a mortgage will help you understand how much you can borrow. This makes your home-buying process in Texas more focused and efficient.

    Getting a mortgage preapproval offers several benefits:

 

  • Better Financial Oversight: You can understand the type of property you can afford in Dallas based on your income, assets, debts, and credit score.

 

  • Stand Out to Sellers: Sellers often prefer buyers with pre-approval letters that are only valid for 60 to 90 days. These letters indicate that you’re serious about buying a home in Dallas.

 

  • Mortgage Process: Once you find an ideal house, your preapproval letter can help you speed up the mortgage process. 

 

  1. Start Search: Once you have researched the houses and current market rates, it’s time to look for a house. You can look through online MLS platforms like Houzeo for affordable properties. 

 

  1. Attend Open Houses: Visit open houses. It gives you an idea of the property’s condition and the neighborhood. Note the features and ask sellers questions about the home.

 

  1. Inspect the House: Verify the property’s upkeep and whether any repairs need to be made. This will help you identify problems with electrical wiring, plumbing, heating, ventilation, and air conditioning (HVAC) systems.

 

  1. Negotiate the Price: When you find a house you want to buy, try to negotiate with the seller. Consider all the market rates and current prices so you don’t overpay for your property.  

 

  1. Closing Process: It involves several steps, including a final walk-through, securing homeowners insurance, and signing the papers. Understanding each step and being prepared for any potential challenges is essential.

    The final step in purchasing a home is finalizing the transaction:

 

  • Pay Closing Charges: You must pay the closing charges and sign all relevant documents. After everything is in order, you’ll get the keys to your new house. 
  • Review the Closing Disclosure: About three days before closing, your lender will send you a closing disclosure outlining your mortgage terms, monthly payments, interest rate, etc. 
  • Final Settlement: The escrow will transfer your closing fees and down payment to the seller.

Bottom Line:

While Dallas boasts a median home price of $319,000, buying a house is a substantial financial investment. To ensure a smooth journey, get pre-approved for a mortgage. With a solid financial plan in place, you’re well on your way to turning your dream of homeownership in Dallas into a reality.