Congratulations! You’ve decided to become a new homeowner in the vibrant Rio Grande Valley (RGV). With its sunny skies, rich culture, and diverse communities, the RGV is a unique place to call your home.

But before you get swept away by the charm of Spanish colonial architecture and mouthwatering barbacoa, take a step back and dive deep into the checklist you need to complete before buying your first home.

Checklist for First-Time Home Buyers

1. Laying the Financial Foundation

Before buying a new home in McAllen, Tx, you must establish a clear budget that takes into account the purchase price of your home, annual property taxes, insurance, and maintenance costs. You can use online calculators and consult financial experts to develop a realistic budget for your goals.

• Know your credit score

A good credit score is a sure way to secure a lower mortgage rate. Aim for a score above 670 for better loan rates. Obtain a credit report and check it for accuracy. If there are any problems with your report, clearing them up before you buy can make it easier to get a loan for your new home. 

• Check your debt-to-income ratio

Your debt-to-income (DTI) ratio is an indicator of your financial health that lenders will use to determine whether you qualify for a mortgage and if so, what the terms of that mortgage will be. You can calculate your DTI by adding up your monthly debt payments and dividing that number by your gross income. If it is at 36 percent or less, you are likely in a good position to take on the demands of a mortgage. Anything above 43 percent could disqualify you from the most borrower-friendly types of mortgages. If your DTI is high, consider consolidating or tackling high-interest loans before engaging in the home buying process. 

• Research your financing options

Choose your financing options carefully. A pre-approval from a trusted mortgage lender will give you a realistic budget and a stronger negotiating position. It will also give you better terms, as it signals to sellers that you are a serious buyer. If you want to pay less upfront, research government programs like FHA loans, which can offer lower down payments for first-time home buyers.

2. Finding Your Community

The RGV real estate market is diverse, with various neighborhoods and communities offering different amenities and lifestyles. Research the market trends, understand property values, and identify areas that align with your future goals and plans.

• Define your needs

Make a list of must-haves and deal-breakers, such as the number of bedrooms, location, yard space, and proximity to schools, workplaces, and recreational areas. Consider your lifestyle and future plans (such as expanding your family), as this list will guide your home search.

• Explore the territory

Research different RGV communities from McAllen to Mission. Each offers unique charm, amenities, and price points. Attend open houses to get a feel for the neighborhoods and talk to residents. Remember to visit the neighborhood at different times of the day to get the full experience of the area. 

• Enlist a knowledgeable real estate agent

Find a realtor who understands the RGV market and your needs. Look for an agent with local expertise in the RGV market who has a solid track record and excellent negotiating skills. Also, remember to ask for recommendations from friends, family, or colleagues who have had positive experiences.

3. Finding the Right Home

Finding a home that is a perfect match for you will be a challenge, as you navigate numerous home features, locations and price points. Some houses will have the perfect number of rooms, but the kitchen structure may not suit you. Or, it may have enough bedrooms and be the right price, but sit in a less than ideal location. Part of the home buying process will require you to thoughtfully sort through your options and decide what works for your current and future family needs. 

• Inspect homes thoroughly

Once you find a property you like, schedule a professional home inspection. A thorough inspection can uncover potential issues that may become a challenge with the property. Pay close attention to structural integrity, foundation issues, and potential plumbing or electrical problems. Be present during the inspection to ask questions and gain insights regarding the property’s condition.

• Consider future family growth and development

If you are planning to start a family, it is best to consider a home that will accommodate your family’s growth over time. Ensure that there is enough space or that the condition of the house is good enough for further development if required in the future.

Consider building a custom home

Chances are that purchasing a pre-built home will require some sort of compromise. If you want a home that has every detail exactly the way you want it, you should think about building a custom home. Featuring your dreams and details, this process gives you far more flexibility and can require less compromise than purchasing a standing home. 

4. Understand the Rules and Regulations

Before moving into a new community, it is best to understand the rules and policies that govern the area. This will ensure that your transition and settlement into the new place is smooth. 

• Understand property taxes

Property taxes differ from one region to another in the RGV. Familiarize yourself with the property tax rates in your chosen city and factor the costs into your budget. You can also inquire about any incentives or tax exemptions for first-time homebuyers.

• Review Homeowner Association (HOA) rules

If the property you are interested in is part of a Homeowner Association (HOA), you must review the HOA’s rules and regulations. Understand the monthly fees, any restrictions on property modifications, and overall governance structure. This information will give you a clear understanding of the community’s expectations. 

5. Securing Your Perfect Home

Once you’ve found your dream house, work closely with your real estate agent and prepare to skillfully negotiate for a fair purchase price and avoid unexpected detours. Be prepared to make a compelling offer based on your pre-approved mortgage and any additional conditions you may meet.

• Make a competitive offer

Research comparable properties in the area to determine a fair offer. Consider additional contingencies, like repairs or closing cost negotiations.

• Review the purchase agreement

Carefully review the purchase agreement before signing. Ensure that all the terms and conditions align with your expectations and that proper contingencies are included to protect your interests.

• Secure home insurance

Your realtor and mortgage lender will guide you through the maze of paperwork. However, you must explore a wide range of home insurance options and secure coverage before closing the deal. Home insurance is a vital aspect of homeownership, as it provides financial protection in case of unexpected events.

• Conduct a final walkthrough

Before finalizing the purchase of your new home, conduct a final check to ensure that all agreed-upon repairs are complete and that the property is in the expected condition. This will be your last opportunity to address concerns before finalizing the purchase.

• Prepare for closing costs

Closing costs can include fees associated with the buying process, such as attorney fees, title insurance, and lender fees. They are usually several thousand dollars. Understanding these costs can help you plan your budget and avoid any last-minute surprises.

6. Final Steps and Settling In

Congratulations! You are now a proud homeowner in the Rio Grande Valley. Wrap up the final processes seamlessly and prepare to  enjoy your new home. Take time to settle down into your new home and celebrate your achievement.

• Closing time

Be present during the closing, ensure all documents are accurate, and ask questions if anything is unclear.

• Keys in hand

Celebrate your new homeownership! Get a beautiful welcome mat, unpack your belongings, and personalize your space. Don’t forget to introduce yourself to your neighbors and start building connections in your new community.

Bonus Tips for RGV First-Time Home Buyers

• Embrace your Texan heritage

Don’t underestimate the value of bargaining! Haggling is a cultural norm in the RGV, especially at flea markets and smaller shops. Channel your inner Texan and negotiate for the best deals.

• Tap into the community

The RGV is known for its strong sense of community. Attend local events, festivals, and gatherings to connect with neighbors and experience the unique RGV charm.

• Be a green neighbor

Sustainability is essential in the RGV. Explore energy-efficient home options, consider water-saving landscaping, and learn about local recycling programs. Remember, small steps make a big difference!

Homes for Sale in McAllen, Tx

Buying your first home in McAllen, Tx, is a journey, not a sprint. Enjoy the process, learn from it, and don’t be afraid to ask for help. With this checklist as your compass and a little Texan grit, you’ll confidently navigate the RGV housing market and land your perfect first home.

Villa Homes is an award-winning home builder and member of the Rio Grande Valley Builder’s Association (RGVBA), the National Association of Home Builders (NAHB), and the Texas Association of Builders (TAB). For any assistance related to home building, contact us today.