Frequently Asked Questions

Down payment requirements vary by loan type:

• Conventional loans: As low as 3% for first-time buyers, typically 5-20%
• FHA loans: 3.5% minimum
• VA loans: 0% down for qualified veterans
• USDA loans: 0% down for qualified rural properties

However, you'll also need 2-5% for closing costs and should have 3-6 months of expenses saved as an emergency fund.

Minimum credit scores by loan type:

• Conventional loans: 620 minimum (680+ for best rates)
• FHA loans: 580 minimum (500-579 requires 10% down)
• VA loans: No official minimum, but most lenders prefer 620+
• USDA loans: 640 minimum typically

Higher credit scores qualify you for better interest rates, potentially saving thousands over the life of your loan.

Always get pre-approved. Here's the difference:

Pre-qualification: A rough estimate based on unverified information you provide. Takes 10 minutes. Not worth much to sellers.

Pre-approval: Lender verifies your income, assets, and credit. You receive a specific loan amount you qualify for. Takes 1-3 days. Shows sellers you're a serious, qualified buyer.

In competitive North Texas markets, sellers often won't even consider offers without a pre-approval letter.

The typical timeline in North Texas:

• House hunting: 2-8 weeks (depends on market and your requirements)
• Offer to contract: 1-3 days (in competitive markets, hours)
• Option period: 7-10 days (for inspection and due diligence)
• Closing: 30-45 days from accepted offer

<strong>Total:</strong> Most buyers close within 60-90 days of starting their search. Cash buyers can close in as little as 7-14 days.

The option period is a unique feature of Texas real estate contracts. During this time (typically 7-10 days), you have the unrestricted right to terminate the contract for any reason and get your earnest money back.

You use this time to:

• Conduct professional home inspection
• Review HOA documents and deed restrictions
• Verify property taxes and insurance costs
• Confirm financing details
• Ensure the home meets all your needs

<strong>Cost:</strong> Typically $100-500 paid to seller (non-refundable). It's the best money you'll spend—it's your "walk away free" insurance.

Absolutely, and it costs you nothing.

In Texas, the seller pays both the listing agent and buyer's agent commissions (typically 6% total, split 3% each). You get professional representation at no cost.

A buyer's agent:

• Has fiduciary duty to YOUR interests (not the seller's)
• Knows the market and can find homes before they hit the market
• Negotiates price, repairs, and terms on your behalf
• Coordinates inspections, appraisals, and closing
• Helps navigate 20+ pages of legal contracts
• Provides market insights and neighborhood knowledge

Going directly to a listing agent means they represent the seller—even if they help you. Don't do it.

I provide a complimentary Comparative Market Analysis (CMA) that considers:

• Recently sold homes: Similar properties that sold in past 3-6 months
• Active listings: Your current competition
• Pending sales: What buyers are currently willing to pay
• Your home's condition: Updates, repairs needed, unique features
• Market trends: Is the market rising, falling, or stable?

<strong>Avoid relying on:</strong> Zillow/Redfin estimates (can be 10-20% off), tax assessments (often outdated), or what you paid/need to sell for (the market doesn't care).

Focus on high-impact, low-cost improvements:

Always fix:

• Safety issues (electrical, structural)
• Plumbing leaks
• Broken appliances that convey
• Obvious cosmetic flaws (holes in walls, broken fixtures)

Consider:

• Fresh paint (neutral colors)
• Deep cleaning and carpet cleaning
• Curb appeal (landscaping, front door)
• Minor kitchen/bathroom updates

Skip:

• Major renovations (rarely recoup full cost)
• High-end upgrades (you won't get paid back)
• Personal taste items (pool, fence) unless neighborhood expects it

I provide a detailed pre-listing consultation to identify exactly what will maximize your return.

In North Texas (October 2025):

• Average days on market: 42 days
• Priced right: 20-30 days
• Overpriced: 60+ days (and often sell for less)
• Premium areas (Prosper, Frisco, Southlake): 25-35 days
• Seasonal variation: Spring/fall faster, winter slower

Factors that impact timeline:

• Price competitiveness
• Home condition and presentation
• Marketing quality
• Current market inventory
• Location and school district

With proper pricing and marketing, most of my listings receive offers within 2-3 weeks.

It depends on your situation.

Sell as-is if:

• You inherited the property and don't want to invest
• You're in financial distress and need quick sale
• Major repairs needed exceed your budget
• You're relocating and can't oversee work

Understand the trade-offs:

• Smaller buyer pool (cash buyers, investors, handy buyers)
• Lower offers (10-20% below retail in many cases)
• Faster sale timeline
• No repair headaches

Often, strategic repairs costing $3,000-5,000 can net you $15,000-30,000 more. I can help you evaluate whether repairs make financial sense for your specific situation.

Expect to pay 6-10% of sales price in total closing costs:

• Agent commissions: 5-6% (negotiable, covers both agents)
• Title policy: ~$1,500-3,000 (depends on price)
• Transfer taxes: Minimal in Texas (county-dependent)
• Prorated property taxes: Your portion of the year
• HOA transfer fees: $200-500 if applicable
• Buyer closing cost credits: 0-3% (if negotiated)
• Home warranty: $400-600 (if offering)

<strong>Example:</strong> $500,000 home might have $30,000-35,000 in total seller costs. I provide a detailed net sheet estimate when we list your home.

Yes, but consider the risks:

FSBO challenges:

• Limited exposure (90% of buyers use agents who may avoid FSBOs)
• Pricing errors (FSBOs typically sell for 5-10% less than agent-listed)
• Negotiation inexperience (buyers' agents negotiate for a living)
• Legal liability (20+ pages of contracts with significant legal implications)
• Time investment (showings, calls, paperwork)
• Safety concerns (unvetted strangers in your home)

Reality: FSBOs take 40% longer to sell and often net less after accounting for pricing errors and negotiation mistakes. The 5-6% commission often pays for itself in higher sale price and smoother transaction.

I offer a free consultation to show you exactly what you'd net with professional representation vs. FSBO.

Buyers typically pay 2-5% of purchase price:

• Loan origination fees (0.5-1%)
• Appraisal ($500-700)
• Home inspection ($400-600)
• Title insurance (lender's policy)
• Recording fees
• Prepaid items (insurance, taxes, HOA)
• Survey ($400-600 if needed)

Sellers typically pay 6-10%:

• Agent commissions (5-6%)
• Title policy (owner's policy)
• Prorated taxes
• Any negotiated buyer credits

Many costs are negotiable. Sellers can offer credits, and lenders sometimes offer no-closing-cost loans (in exchange for higher rates).

Earnest money is a good-faith deposit showing you're serious about purchasing the home. It's held in escrow and applied to your down payment/closing costs at closing.

Typical amounts:

• 1-2% of purchase price in North Texas
• $1,000-$5,000 on average homes
• More in competitive situations to strengthen offer

When do you get it back?

• ✓ If you terminate during option period
• ✓ If seller breaches contract
• ✓ If contract has contingency that isn't met (financing, appraisal)
• ✗ If you terminate after option period without valid reason
• ✗ If you simply change your mind after option period

The earnest money protects the seller if you back out without cause after the option period.

A professional home inspection (3-4 hours) examines:

Major Systems:

• Foundation and structural components
• Roof condition and estimated remaining life
• HVAC systems (heating and cooling)
• Electrical system and panel
• Plumbing systems and water heater

Interior & Exterior:

• Windows and doors
• Walls, ceilings, floors
• Attic and insulation
• Garage and driveway
• Grading and drainage

Appliances:

• Built-in appliances operation
• Dishwasher, range, oven

<strong>Not included:</strong> Pools, sprinklers, chimney, septic, termites (require separate inspections). Inspection cost: $400-600 for typical home.

Yes, you need it—and your lender will require it too.

Title insurance protects you from issues with the property's ownership history:

• Unknown liens or judgments
• Errors in public records
• Undisclosed heirs claiming ownership
• Forgery or fraud in previous transactions
• Easements or encroachments

Two policies:

• Lender's policy: Required by mortgage company (protects them). You pay.
• Owner's policy: Protects you. Highly recommended. One-time fee provides lifetime protection.

Cost: Typically $1,500-3,000 total (regulated by state). In Texas, sellers traditionally pay for owner's policy, but it's negotiable.

Homeowners Associations (HOAs) are common in North Texas, especially in newer communities.

Benefits:

• Maintained common areas (pools, parks, landscaping)
• Consistent neighborhood appearance
• Amenities (fitness centers, playgrounds)
• Typically higher property values

Requirements:

• Monthly/quarterly/annual fees ($50-500+/month typical)
• Architectural restrictions (paint colors, fencing, modifications)
• Yard maintenance standards
• Vehicle parking rules

Before buying:

• Review HOA documents during option period
• Check fee amounts and payment history
• Understand restrictions that matter to you
• Review HOA financial health and reserves

I always recommend reading HOA docs carefully. They're legally binding.

Top-rated school districts in North Texas (A/A+ ratings):

Tier 1 (A+ districts):

• Prosper ISD: 99% graduation rate, excellent athletics
• Frisco ISD: 11 National Blue Ribbon schools
• Carroll ISD (Southlake): One of nation's best
• Lovejoy ISD: Small, highly-ranked district

Tier 2 (A/A+ districts):

• Plano ISD, Allen ISD, Coppell ISD
• Keller ISD, Grapevine-Colleyville ISD
• McKinney ISD, Lewisville ISD

Homes in top school districts command premium prices (typically 10-20% more) but offer strong appreciation and easier resale.

Texas has no state income tax, but property taxes are higher than many states.

Typical tax rates in North Texas:

• Frisco/Prosper: 2.0-2.3% of assessed value
• Plano: 2.1-2.4%
• McKinney/Allen: 2.0-2.3%
• Southlake: 1.8-2.1%

<strong>Example:</strong> $500,000 home in Frisco = ~$10,000-11,500/year in property taxes

<strong>Homestead exemption:</strong> Save $25,000-40,000 off assessed value if it's your primary residence. File with county appraisal district after closing.

Property taxes fund excellent schools, roads, police, fire. Trade-off for no income tax.

Yes, for multiple reasons:

Strong fundamentals:

• Population growth: 100+ people move here daily
• Job growth: Major corporate headquarters (Toyota, Liberty Mutual, State Farm)
• No state income tax
• Affordable compared to coastal markets
• Excellent schools attract families
• Diversified economy

Investment opportunities:

• Appreciation: 5-10% annually in recent years
• Rental income: Strong demand, especially near corporate campuses
• New construction: Numerous master-planned communities
• Vacation rentals: Limited due to city restrictions, but some areas permit

Best areas for investment: Prosper, Frisco (north sections), McKinney, Celina, Little Elm (emerging markets with growth potential).

North Texas is in "Tornado Alley," but perspective is important:

Reality:

• Most tornadoes are small and short-lived
• Direct hits on homes are rare (but possible)
• Advanced warning systems give 10-30 minutes notice
• Peak season: March-June
• Modern building codes require safe rooms in many new homes

Storm shelter recommendations:

• Underground shelter: Safest option, $3,000-10,000
• Above-ground safe room: $4,000-8,000 (often in garage)
• Interior bathroom/closet: Free, better than nothing

Most families rely on interior safe spaces. Newer homes in many cities (Frisco, Prosper, etc.) are required to have designated safe rooms. Check building year and code requirements.

Bottom line: Be weather-aware, have plan, but don't let fear prevent you from moving here.

Texas has some of the strongest homestead protections in the nation:

Homestead exemptions:

• Property tax exemption: $25,000-40,000 off assessed value (save ~$500-800/year)
• School tax exemption: Additional $25,000 for those over 65 or disabled
• Creditor protection: Your homestead cannot be seized to satisfy most debts (exceptions: mortgages, property taxes, HOA liens, home improvement liens)

Requirements:

• Must be your primary residence
• Can only have one homestead at a time
• File homestead exemption with county appraisal district
• Deadline: April 30th of tax year, but can file anytime after purchase

File immediately after closing—it's free money you're leaving on the table if you don't.

VA loans are one of the best mortgage programs available:

Major benefits:

• 0% down payment: Buy with no money down
• No PMI: Save $100-200+/month compared to conventional
• Lower interest rates: Typically 0.25-0.5% lower than conventional
• No prepayment penalty: Pay off early without fees
• Seller can pay closing costs: Up to 4% of purchase price
• More lenient credit requirements: 580-620 often acceptable
• Higher debt-to-income ratios: Up to 50% in some cases

<strong>Costs:</strong> VA funding fee (1.4-3.6% of loan, can be financed), but no monthly PMI makes it worthwhile.

I specialize in helping veterans use their VA benefits. Contact me for veteran-friendly listings and lender referrals.

Yes—and they should. VA loans often get a bad reputation, but it's largely outdated.

Common misconceptions:

• ❌ "VA appraisals are tougher" - Not really. They look for safety issues any buyer would want addressed.
• ❌ "VA loans take longer" - Not true. They close in 30-45 days like conventional loans.
• ❌ "Sellers can't negotiate" - False. VA loans allow negotiation on everything except pest inspection requirements.

Why sellers should accept VA loans:

• Government-backed = very low fall-through rate
• VA buyers are highly qualified (military service + credit approval)
• Sellers can still negotiate repairs
• Funding fee can be financed (doesn't affect buyer's cash)

I educate sellers on VA loans and help structure strong offers for VA buyers. Your service should never be a barrier to homeownership.

Key factors for successful North Texas rental properties:

Location priorities:

• Near major employers (Toyota HQ, Legacy business parks, DFW Airport)
• Good school districts (families pay premium rents)
• Growing areas (Prosper, Celina, Little Elm, north McKinney)
• Access to highways (121, 75, DNT)

Property characteristics:

• 3-4 bedrooms (most demand)
• 2+ bathrooms
• Single-family homes or townhomes
• 2-car garage
• Built after 2000 (lower maintenance)
• Median price range for area (not luxury, not bargain)

Financial targets:

• 1% rule: Monthly rent = 1% of purchase price
• Cap rate: 5-8% typical in North Texas
• Cash flow: $200-400/month after all expenses

I can provide rental comparables and help you analyze investment potential.

It depends on your situation:

Use property management if:

• You live out of state
• You have multiple properties
• You don't want tenant calls at 2am
• You're not handy with repairs
• Your time is worth more than management fees

Self-manage if:

• You live locally
• You have only 1-2 properties
• You're handy and responsive
• You want maximum cash flow
• You have time and interest

Typical costs:

• Property management: 8-10% of monthly rent
• Placement fee: 50-100% of first month's rent (one-time)
• Lease renewal fee: $100-200
• Maintenance markup: 10-20% on repairs

Example: $2,000/month rent = $200/month management fee. Worth it for many investors for the time saved and professional tenant screening.