Does the thought of buying your very first home make you a little nervous?
I completely understand! It can seem very overwhelming to go through such a huge process when you don’t know much about it. Don’t worry though – I created this post as a guide for first time home buyers in San Antonio JUST FOR YOU!
FAQs for First Time Home Buyers in San Antonio
Let’s go through some of the most frequently asked questions that first time home buyers in San Antonio usually have:
- How much does it cost to buy a home in San Antonio?
- Should I buy a home or rent in San Antonio?
- Do I need a Realtor to buy a home in San Antonio?
- Are there special loan programs for first time home buyers in San Antonio?
- How do I qualify for a home loan if I’m moving to San Antonio?
- What will my mortgage payment cover?
How much does it cost to buy a home in San Antonio?
This is going to depend entirely on the type of mortgage loan that you use, the sales price of the home that you purchase, taxes & insurance, and so many other variables. But, here is a breakdown of what you can expect to pay up front when buying a home in San Antonio.
Earnest Money Deposit
Traditionally, the earnest money deposit is 1% of the sales price of the home. It is paid to the title company after your offer has been accepted. This gets credited to your down payment or closing costs at closing, but is held by the title company until closing.
Option Fee
The option fee is going to vary by situation. We will usually decide on a certain dollar amount to “buy” a certain amount of days from the seller to get your inspection & due diligence period done. (For example, $10/day for a 10 day option period would be $100 due to the seller.) The seller keeps this option fee if you change your mind about the home for any reason during the covered option period. It is credited to you at closing, if you continue with the home purchase.
Home Inspection
This is the fee that you pay to a 3rd party inspector to inspect the home during your option period. This fee will vary, depending on the inspector that you choose, the details of the home, and if you add on any additional inspections (sprinkler, sewer camera, termites, etc.). (Typically $450+)
Appraisal
If you are buying your home with a mortgage, the lender will likely require an appraisal on the home (which you get to pay for!) This fee will also vary, depending on the home, but you can expect $750+)
Down Payment
Depending on what type of loan that fits best for you, the down payment could vary anywhere from 3%-20% down payment. There are also loan programs that have ZERO money down (qualifying VA or USDA, for example), and programs for down payment assistance. The lender will discuss these options with you when we start the pre-approval process.
Don’t be surprised by closing costs!
This is an essential cost when buying a home, but keep in mind that closing costs are always negotiable! Whenever possible, I attempt to negotiate for the seller or builder to cover at least a portion of my buyers’ closing costs. This will entirely depend on the type of market that we are in (Buyers’ market = higher possibility, sellers’ market = we may have to make offer more appealing in other ways.)
Here are some of the specifics that can be included as part of your closing costs:
- Prepays of property taxes and homeowner’s insurance
- First year of mortgage insurance (If downpayment is less than 20%)
- Lender & Origination Fees
- Title company fees (attorney review of documents, recording fees)
- Brokerage fees (can be paid by seller/builder)
- Pro-rated property taxes
- Pro-rated HOA fees
First Time Home Buyer in San Antonio?
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Should I buy a home or rent in San Antonio?
The short answer to this is that it depends on your situation. Buying a home is usually going to be a smarter financial decision, but there are a few scenarios where buying may not be the best option for you. My suggestion is that we have a quick chat to talk about your situation to make sure that you have all of the facts about the buying process. Then you can make an educated decision from there.
Here are a few things to consider when weighing out your options on whether you want to buy or rent in San Antonio:
- Building Equity
- Long-term Investment
- Belonging to a Community
- No Rent Increases
- Customization & Personalization
- Tax Benefits
- Potential Wealth Building
Check out my page all about Buying a Home in San Antonio for in-depth details on all of these benefits & more!
Do I need a Realtor to buy a home in San Antonio?
It is definitely in your best interest to have a Realtor to represent you through the home buying process. A Realtor will serve as your in-person guide for first time home buyers in San Antonio! There is so much to know about the process of buying a home, but that’s what I’m here for. There are many scenarios, legal obligations and outcomes that you need to be aware of. A knowledgable real estate agent can help you to find the best options, negotiate the best deals, navigate you through the contract process, and SO much more!
Plus, you will absolutely want someone by your side to be committed to your best interests. This applies whether you are looking for a resale home, or a new construction home. It is always your choice who you decide to work with. Make sure that you feel comfortable and confident with your choice, as this it is important that you have a great connection with your San Antonio Realtor.
Are there special loan programs for first time home buyers in San Antonio?
Yes! There are several different loan programs that are perfect for first time home buyers in the San Antonio area! I have some great lender referrals that will be able to look at your info and determine which program is best for you.
How do I qualify for a home loan if I’m moving to San Antonio?
This is a question that I’m asked frequently as a San Antonio Relocation Specialist! There are a few different ways that a lender would be able to pre-approve you, even if you’re moving to San Antonio. If you are moving for a job relocation, you would usually just need an offer letter from your employer to verify employment & income.
There are also a few programs that will allow you to qualify for a mortgage, without verifying employment or income. These programs typically require larger down payments, higher interest rate, and proof of having money in the bank. But, they can help out tremendously if you don’t have your employment established yet.
But, no matter what your situation is, I have awesome lender referrals for you! They will help us figure out a solution when moving to San Antonio.
What will my mortgage cover?
Most mortgage loans cover 4 items:
- Principle – This is the amount that the loan is for.
- Interest – This is the payment to the lender for the money that you’ve borrowed. Basically, this is the cost of borrowing money.
- Homeowner’s Insurance – A premium to insure the property against loss from fire, smoke, theft, and other hazards; required by most lenders.
- Property taxes – Taxes are assessed on your home by the city and county that you live in, according to the area, the value of your home, etc. The tax rates and amounts will vary.
Now that we’ve covered the process from beginning to end, what questions do you have? The home buying process can seem very overwhelming! There are many moving parts, numerous different scenarios and outcomes. Not to mention that this will be the largest financial purchase & investment of your life! Just remember, I am your partner through this journey. So, all you have to do is reach out with any questions that you have, and I will take it from there. Talk to you soon!
Moving to San Antonio?
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Next Steps for Your Move to San Antonio
If you're moving to San Antonio this year, I understand the overwhelm and stress that you must be feeling! It's not easy relocating to another city, another state...another life. But, now that you've found my page, I can help you plan & organize your move to San Antonio. Whether you're PCSing to San Antonio, moving to be closer to family, or just looking for a change in your lifestyle, I'm here as a resource for you. Here are some options for the next steps for you:
Tips for Navigating This Site
There is tons of information, and hundreds of pages and posts for you on livinginsatx.com!
- If you are looking for even more resources on buying a home, selling a home, or relocating to San Antonio, Texas, make sure to start with the home page of livinginSATX.com HERE.
- San Antonio homeowners, for all the best tips and resources to sell your home in San Antonio, check out the seller's page HERE.
- First time home buyer in San Antonio? Check out all the tips and resources for buying a home in San Antonio HERE.
- Planning out your San Antonio relocation? The San Antonio Community Guide will give you tons of options on where to live when moving to San Antonio, Texas!
