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Home Buying Frequently Asked Questions
Buying a home is an exciting milestone, but it's also natural to have questions. Whether you're a first-time buyer, relocating to Hill County, or purchasing your next home, understanding the process can help you make informed decisions.
Below are answers to many of the questions we hear most often from buyers throughout Hillsboro, Whitney, Itasca, Abbott, Aquilla, Blum, Covington, Mount Calm, Penelope, and surrounding Hill County communities.
As Realtors with Real Broker, LLC, Jay & Nancy Jolly are here to guide you through every step of the home-buying process.
Getting Started
How do I start the home-buying process?
The first step is meeting with a Realtor and obtaining a mortgage pre-approval. This helps you understand your budget before you begin looking at homes.
Should I get pre-approved before looking at homes?
Yes.
A mortgage pre-approval:
Determines your budget
Strengthens your offer
Shows sellers you're a serious buyer
Helps speed up the closing process
How much house can I afford?
Your budget depends on several factors, including:
Income
Monthly debts
Credit history
Down payment
Interest rates
Property taxes
Homeowners insurance
A lender can help determine a comfortable monthly payment and loan amount.
How much money do I need for a down payment?
The amount varies depending on your loan program.
Some loans require:
0% down (for eligible VA and USDA borrowers)
Low down payment options
Higher down payments for certain conventional loans
Your lender can explain the options available to you.
Financing
What types of home loans are available?
Common loan programs include:
Conventional loans
FHA loans
VA loans
USDA Rural Development loans
Jumbo loans
Construction loans
The best option depends on your financial situation and the property you plan to purchase.
What credit score do I need?
Credit score requirements vary by lender and loan program.
Even if your credit isn't perfect, you may still qualify for financing. A lender can review your situation and discuss available options.
Can I use gift funds for my down payment?
Many loan programs allow eligible gift funds from family members or other approved sources. Your lender can explain the documentation requirements.
Finding the Right Home
How long does it take to buy a home?
Most transactions close within 30 to 45 days after an offer is accepted, although timelines vary depending on financing, inspections, appraisals, and other factors.
Should I buy a new construction home or an existing home?
Both have advantages.
New construction may offer:
Modern floor plans
Energy efficiency
Builder warranties
Existing homes may offer:
Established neighborhoods
Mature landscaping
Larger lots
Historic character
We'll help you compare the pros and cons based on your goals.
Can I buy land and build later?
Yes.
Many buyers purchase acreage first and build a custom home in the future. Be sure to consider utility availability, financing, surveys, septic requirements, and any deed restrictions before purchasing land.
Making an Offer
How is an offer prepared?
Your offer is based on:
Comparable sales
Current market conditions
Property condition
Financing terms
Desired closing date
We'll explain every part of the contract before you sign.
What is earnest money?
Earnest money is a deposit submitted with your offer to demonstrate your commitment to purchasing the property. If the transaction closes, it is generally applied toward your purchase. The amount and handling of earnest money are governed by the purchase contract.
What is the option period?
In many Texas real estate transactions, buyers may negotiate an option period. During this time, the buyer can conduct inspections and decide whether to proceed with the purchase under the terms of the contract. The option period and any option fee are negotiated between the parties.
Inspections & Appraisals
Do I need a home inspection?
A home inspection is not legally required in most transactions, but it is strongly recommended. An inspection helps identify the home's condition and may reveal issues that warrant further evaluation or repair.
What is the difference between an appraisal and an inspection?
A home inspection evaluates the property's condition.
An appraisal estimates the home's market value for the lender.
They serve different purposes, and one does not replace the other.
What happens if the appraisal is lower than the purchase price?
Several outcomes are possible, depending on the contract and the parties' agreement.
These may include:
Renegotiating the purchase price
Buyer paying the difference
Requesting an appraisal review through the lender
Exercising applicable contractual rights
We'll discuss your options if this situation arises.
Closing
What are closing costs?
Closing costs may include:
Loan fees
Title fees
Appraisal
Recording fees
Prepaid taxes
Homeowners insurance
Escrow funding
Your lender will provide a Loan Estimate and, later, a Closing Disclosure outlining your expected costs.
When do I receive the keys?
In most transactions, buyers receive the keys after the sale has funded and the deed has been recorded, unless the contract specifies a different arrangement.
What should I do after closing?
After purchasing your home, you should consider:
Changing the locks
Transferring utilities
Updating your mailing address
Setting up homeowners insurance
Applying for a homestead exemption if eligible
Creating a home maintenance schedule
Living in Hill County
Is Hill County a good place to live?
Many residents enjoy Hill County for its:
Small-town atmosphere
Affordable housing
Historic downtowns
Rural lifestyle
Lake Whitney recreation
Convenient access to Waco and Dallas-Fort Worth
Are there homes with acreage?
Yes.
Hill County offers:
Small acreage tracts
Ranches
Farms
Horse properties
Recreational land
Country homes
Can I buy lake property?
Absolutely.
Lake Whitney offers:
Waterfront homes
Lake-view homes
Vacation homes
Golf course communities
Buildable lots
Working with Jay & Nancy Jolly
Why should I work with a local Realtor?
As local Realtors, we provide:
Local market expertise
Community knowledge
Skilled negotiation
Personalized service
Guidance throughout the transaction
Connections to trusted local professionals
Our goal is to make your buying experience as smooth and informed as possible.
Can you recommend lenders, inspectors, and contractors?
Yes.
We're happy to connect our clients with experienced local professionals, including:
Mortgage lenders
Home inspectors
Surveyors
Title companies
Insurance agents
Electricians
Plumbers
HVAC contractors
General contractors
While we can provide recommendations based on experience, you're always free to choose the service providers who best meet your needs.
Still Have Questions?
Every buyer's situation is unique, and not every question can be answered with a general guide. Whether you're wondering about financing, neighborhoods, inspections, market conditions, or your next steps, we're here to provide honest answers and local expertise.
Buying a home should be an exciting experience—not a confusing one.
Let Jay & Nancy Help You Buy with Confidence
From your first consultation to closing day, Jay & Nancy Jolly are committed to making your home-buying journey as smooth and successful as possible. With local market knowledge, responsive communication, and personalized guidance, we'll help you navigate every step with confidence.
Whether you're purchasing your first home, upgrading, relocating, or searching for your dream property in Hill County, we're ready to help.
Have a question that's not answered here? Contact Jay & Nancy Jolly today—we're always happy to help you make informed real estate decisions.