Thinking about buying a house in San Antonio, TX? San Antonio is a fantastic city full of history, culture, and affordable homes. From the picturesque River Walk to the Alamo historical sites, San Antonio is full of unique and iconic attractions. It has over 140 neighborhoods offering everything from trendy bars and restaurants to suburban enclaves. The San Antonio real estate market is also one of the most affordable of all the major cities in Texas.
So there are countless reasons to consider buying a house in San Antonio, TX. Buying a home is a major milestone, especially if it’s your first property. It’s also easy for first-time home buyers in San Antonio, TX, to get overwhelmed. However, with the proper preparation, it can be a straightforward and exciting process. So, to help you prepare, here is a step-by-step guide on how to buy a home in San Antonio, TX.
Table of Contents
The Steps to Buying a House in San Antonio, TX
Look at Housing Prices in San Antonio and Set a Budget
Before beginning your search, it’s important to look at home prices in San Antonio, Texas, and take stock of your own finances to set a realistic budget, especially for first-time buyers. Buying a house in San Antonio, TX, is a major commitment, so starting with a clear budget is crucial.
On top of your monthly mortgage payment, be sure to account for other ongoing expenses such as property taxes, homeowners insurance, maintenance, utilities, and other costs associated with buying a house in San Antonio, TX.
A mortgage affordability calculator can be useful for determining how much you’ll need to purchase your dream home. You’ll not only want to factor in your income but also take a look at your finances as a whole and consider how much debt/savings you have when buying a house in San Antonio, TX.
Qualifications for Buying a House in San Antonio, TX
Most professionals advise against spending more than 28% of your gross income on the monthly mortgage payment. The median household income in San Antonio is $59,593 per year. So, the average San Antonio home buyer would want to avoid spending more than $1400 per month on their mortgage payment.
You’ll also want to make sure you have enough to afford the down payment. The amount you’ll need to save will depend on what type of loan mortgage you plan to use. With a conventional loan, you’ll need to put down at least 20%. Otherwise, you’ll be stuck paying private mortgage insurance.
However, other loan products are available, such as FHA loans, which have flexible requirements and down payment minimums as low as 3.5%. USDA and VA loans with a 0% down payment are also available for shoppers buying a house in San Antonio, TX, although you must be a rural homeowner or veteran to qualify.
Don’t forget about closing costs when buying a house in San Antonio, TX, which are typically about 2-6% of the final offer price. When you buy a home in San Antonio, TX, you’ll also want to be sure you have plenty of savings left over after you pay the down payment and closing costs. Lenders will want to see you still have a decent financial cushion in case of emergencies.
The amount of liquid cash they’ll want to see can vary depending on the lender, but as a good rule of thumb, most home buyers in San Antonio should save at least 3-6 months of living expenses after making the down payment.
It’s also wise to review your debt-to-income ratio when you are buying a house in San Antonio, TX. In general, the highest DTI a borrower can have and still qualify for a loan is 43%. However, most lenders like to see a DTI of 36% or lower, with no more than 28%- 35% of that debt going toward servicing the mortgage. So, house buyers in San Antonio with high debt should focus on paying it off before making a purchase.
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The San Antonio Housing Market
In addition to looking at your own finances, you’ll also want to look at the average home price in San Antonio, TX to see how far your budget will get you. Luckily, house prices in San Antonio, Texas are very reasonable, and there is a range of options available, from starter homes to massive estate homes for sale.
Redfin data reveals that the median home price in San Antonio TX is $264,000, which is 38% lower than the rest of the country. The average price per square foot of San Antonio real estate is $159.
There is no state income tax in Texas, which often results in higher property taxes for residents buying a house in San Antonio, TX.
They use an ad valorem property tax system, which means they’re based on the value of your home as determined by the Bexar County Appraisal District. Rates can vary depending on what school and special districts your home is in, but most San Antonio home buyers can expect to pay between 2.1 and 2.5%.
The San Antonio housing market is somewhat competitive. The average home tends to sell for 3% below the listing price and tends to get an offer within 50 days, although the most desirable properties can go pending in as little as 21 days. The median number of days San Antonio, TX real estate sits on the market is 60, and 10% of houses sell above the listing price.
Find a Mortgage and Get Pre-Approved for Buying a House in San Antonio, TX
Before you begin your search, seeking pre-approval on home loans in San Antonio is often wise. Pre-approval shows sellers that you’re serious and have the financing needed to back up your offer, increasing the chances it will be accepted. It also confirms that your budget has been deemed reliable by a lender so you don’t waste time looking at homes that are out of your budget.
There are many different types of non-commercial loans you may consider when buying a house in San Antonio, TX, including conventional, new construction, FHA, VA, and USDA loans. You can look into getting a mortgage from a bank, credit union, online lender, or another financial institution. You should also consider whether you want a fixed-rate mortgage vs an adjustable rate and whether you’d rather pay it off in 10, 15, or 30 years after buying a house in San Antonio, TX.
It may also be wise to see if you qualify for a San Antonio first-time home buyer program. The City’s Neighborhood and Housing Services Homeownership Incentive Program provides down payment assistance in San Antonio, Texas for income-qualified first-time home buyers.
Whatever loan type or program you choose, it’s best to carefully consider all your options to ensure you get the best possible rate.
Once you’ve found a lender you’d like to work with, you’ll need to gather your financial documents and apply for pre-approval for buying a house in San Antonio, TX. The lender will want to see proof of income in the form of tax returns, bank statements, pay stubs, W-2s, and documentation on any other income and assets.
They will also pull your credit report to analyze your debt and payment history. If you want to quickly estimate how much you might be able to afford when buying a house in San Antonio, TX, use the 28/36 rule (mortgage payment should be under 28% of your income, and household debt should be under 36%).
Using this information, they will determine your risk profile to determine how much they are willing to lend you and at what rate. They will then provide you with a letter that you can show the seller confirming that they are willing to lend you up to a certain amount for buying a house in San Antonio, TX, barring any sudden changes to your finances.
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Find a Good Real Estate Agent To Assist In Buying a House in San Antonio, TX
At some point, before you buy a home in San Antonio, you’ll want to find a good real estate agent. Although not a legal requirement, an experienced real estate agent will tell you precisely what you need to buy a house in Texas and show you the best properties in your price range.
Major advantages of working with a real estate agent when buying a house in San Antonio, TX:
- Get access to a wider inventory of homes listed on the MLS
- Curated home options catered to your budget and requirements
- Identify prospective properties consumers will love
- Access to homes provided exclusively by serious sellers
- Information on the most popular neighborhoods you’re interested in
- Expert advice on how to craft a competitive offer
- Support during negotiations while buying a house in San Antonio, TX
- Guidance throughout every step of the San Antonio home-buying process
- Help with paperwork and closing
Working with a real estate agent when you buy a home in San Antonio can often help you find the perfect home sooner and get a better deal, making the overall experience well worth the commission. However, before hiring anyone in particular, you should still do your due diligence and find an experienced professional. Not all agents are the same, and a bad realtor can make buying a house in San Antonio, TX, much more challenging than it has to be. You can find plenty of information online about how to find a good real estate agent in San Antonio.
Go San Antonio House Hunting
You’ve finally made it to the fun part of buying a house in San Antonio, TX, the house hunting phase!
Before you begin, you’ll want to make a list of features you want in a home, including number of bedrooms, amenities, etc. It may help to have a column for wants and needs to make it easier to determine what is a must-have and what could be sacrificed if need be. For instance, you may want a swimming pool but need a home office for days you work remotely. Setting your priorities ahead of time will make it easier to compare each of the San Antonio homes you view.
Next, you’ll want to determine what area you want to live in. This could be as vague as what part of the city or as specific as which school district or even street. It helps to visit a few popular San Antonio neighborhoods or nearby cities to get a sense of the vibe.
Median home price in the best neighborhoods in San Antonio to buy a house:
- Tobin Hill: $347,500
- Stone Oak: $467,500
- Monte Vista: $602,000
- King William: $426,250
- Lavaca: $542,000
- Alta Vista: $427,500
- Terrell Heights: $240,500
- El Dorado: $243,500
When determining where you should buy a home in San Antonio, consider things like the kind of lifestyle you want, proximity to job opportunities, safety, quality of schools, etc. Once you’re ready, you can start looking for homes in popular neighborhoods by doing an online search and seeing what you can find on sites like Zillow and Redfin. You can also work with your real estate agent to find a curated selection of homes to view while house hunting in San Antonio.
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Submit an Offer
The San Antonio house-hunting process can take anywhere from a few days to a few months, depending on how picky you are and how much inventory is available. The average house buyer in San Antonio looks at 10 properties before making a decision. However, it’s entirely up to you whether you view more or less than that. Just keep in mind that your pre-approval letter is only good for a certain amount of time – typically 60 to 90 days. So don’t take too long when buying a house in San Antonio, TX, or you may need to look for a new loan.
Once you’ve found the perfect property, work with your agent to come up with a smart offer. You may want to go with the listing price, or you could always start a bit lower if you feel like you have some leverage. You might even want to go a bit higher if you fall in love with the home, but there’s competition from other buyers.
The seller will look at your offer and either accept it, reject it, or come back with a counter offer. You can go back and forth as many times as needed until you reach an agreement and sign a purchase contract, and put down a deposit.
The due diligence process begins after you’ve agreed to a price and the money is in escrow. You’ll want to conduct an inspection to confirm the condition of the property when buying a house in San Antonio, TX. If the inspection uncovers any previously undisclosed problems or defects, you can either return to the negotiating table or walk away from the purchase if you can’t find a solution.
Your lender will also want you to conduct an appraisal when buying a house in San Antonio, TX to confirm the property’s value. If the appraisal value is significantly lower than your offer, the loan could still be denied. However, if the offer is in line with the value and your finances haven’t changed since you were initially approved, they will approve the loan and finalize your mortgage.
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Close on Your New San Antonio Home!
Once your loan is approved, you’re in the home stretch of buying a house in San Antonio, TX! The final step is to walk the home through again about 24 to 48 hours before the closing to look for any last-minute issues that need to be addressed.
If everything checks out, you’ll meet with the seller and their representation on closing day to finalize the paperwork and exchange funds. Texas is not an attorney-close state, which means a lawyer does not need to be present at the closing. However, it may be wise to have your lawyer or real estate agent present to help you review the paperwork.
Documents you’ll need to sign at closing when buying a house in San Antonio, TX:
- Property transfer forms
- Loan application
- Affidavit of title
- Deed
- Title insurance policy
- Proof of homeowners insurance
- Escrow statement
Upon completing the paperwork, the closing agent or escrow company will give the seller the money and transfer the title to the buyer. All that’s left to do is coordinate with the seller on when to pick up the keys and move in.
Once youāre finished buying a house in San Antonio, TX, you can trust the dependable team of San Antonio movers at 2 College Brothers to make your moving day easy and efficient. Call (210) 874-7010 today for a free quote.
