Buying a New Construction Home in Texas: Step-by-Step Process

Buying a new construction home in Texas follows eight steps: get pre-approved, choose a project and lot, bring your own agent, review the builder’s contract, make selections, inspect at key stages, complete a final walk-through and close. The contract, not the sales presentation, controls price, timing and remedies, so read it with an attorney.

Step 1: Pre-approval and a real budget

Get a lender pre-approval before you shop. If the builder offers its own lender, still collect at least one outside quote and compare the Loan Estimate documents line by line. The CFPB explains how to read them. Fix a budget based on total monthly cost, including the extras covered in property tax on a new build and MUD district taxes.

Step 2: Choose a project, stage and lot

Decide whether you want a finished spec home, a home under construction or a build-to-order plan. Use a directory such as the Texas development list on Property Developments to see stage labels across projects, then check the builder’s own site for current inventory.

Step 3: Bring your own agent

The agent at the sales centre works for the builder. Your own licensed agent can compare incentives, review contract terms and negotiate on your behalf. Many builders’ policies require that your agent register with the community before your first visit, so ask before you tour.

Step 4: Review the contract

Builders often use their own contract. The Texas Real Estate Commission publishes separate standard new-home contract forms for completed and incomplete construction, which are useful benchmarks for what protections a buyer might expect. Whatever form is used, look for:

Clause	What to look for
Price and options	What is included, how upgrades are priced
Completion date	A realistic date and a definition of “completion”
Delay remedies	Right to terminate and recover earnest money
Earnest money	Who holds it and when it is at risk
Warranty	Duration, coverage, exclusions, claim process
Dispute process	Arbitration, mediation, notice requirements
Financing contingency	Whether you can exit if the loan fails

Key takeaway: If a promise matters to you, such as a closing-cost credit or a specific finish, it should appear in the signed contract, not in an email or a brochure.

Step 5: Selections and change orders

Design studio choices can add significant cost. Get written price lists, understand what is standard and ask how change orders affect the completion date. Keep copies of every signed selection sheet.

Step 6: Inspections during construction

Many buyers wait until the end. Better practice is an independent inspection at the pre-drywall stage, once framing, mechanical and plumbing are visible, and again before closing. Details about protections after closing are in the warranty and inspection guide.

Step 7: The final walk-through

Bring a checklist and an inspector. Note every defect on a written punch list, and ask for a date by which each item will be fixed. Do not rely on verbal promises.

Typical items to test:

1. Doors, windows, locks and cabinets
2. Plumbing fixtures and water pressure
3. HVAC operation in each zone
4. Electrical outlets and GFCI protection
5. Paint, trim, flooring and grout
6. Drainage and grading outside

Step 8: Closing

Lenders must provide a Closing Disclosure ahead of closing so you can compare final costs with your Loan Estimate. Check the figures, confirm the warranty paperwork is delivered, and keep the closing package. If you are an overseas buyer, read the notes in our foreign buyer guide before wiring funds.

Common mistakes

• Signing a reservation or deposit agreement without reading it.
• Using only the builder’s lender without comparing quotes.
• Skipping an inspection because the house is new.
• Not asking how long completion estimates have slipped in the past.
• Ignoring community rules, rental restrictions and HOA fees.

When you need extra help

If you are buying from abroad or want help shortlisting projects, Property Developments offers help buying as a service. Check what it provides, how it is paid and whether it fits your situation before engaging. Independently, a Texas attorney and a licensed agent remain the best protection. Compare any new build with a resale home using the comparison guide before committing.

Timeline: what happens when

A typical build-to-order purchase has milestones. After contract signing and deposit, the builder starts permitting and site preparation. Foundation work follows, then framing, rough mechanical work, insulation, drywall, interior finishes and exterior work. Your contract should list estimated dates for each, or at least for completion. Ask for written updates at each milestone, and ask the builder how weather and supply issues are handled in the schedule. In many contracts the estimated completion date is not a firm promise, so look for a long-stop date after which you can cancel and recover your deposit.

For a spec home that is already finished, the timeline is much shorter: contract, financing, inspection, appraisal and closing, typically within the lender’s usual window. Be aware that appraisals on new homes can come in below the contract price, especially in fast-moving areas or when upgrades are included. Ask how the contract handles an appraisal gap before you sign, and whether you can renegotiate or exit.

Financing quirks specific to new builds

Construction-to-permanent loans exist for custom builds, where you borrow in stages during construction and convert to a regular mortgage at completion. For production builders, the buyer typically gets a regular mortgage near completion, and a rate lock is needed for a long period. Long locks cost money, and some builders offer to pay for them. Ask whether the lock covers delays and what happens if it expires before closing. Remember that your credit profile, employment and debts should stay stable between pre-approval and closing, since lenders recheck them.

Who is who in the transaction

• The builder or developer: the seller and the party responsible for construction.
• The builder’s sales agent: works for the builder.
• Your agent: works for you, if you bring one.
• The lender: funds the loan and requires an appraisal and insurance.
• The title company: holds funds, searches title and closes the transaction.
• Your inspector: independent, hired by you.
• Your attorney: advises on the contract and legal questions.

For buyers who want help narrowing down projects before engaging these parties, Property Developments’ consultation page is one starting point, and the Texas guide lists project status. Neither replaces an independent attorney.

After closing

Keep a calendar of warranty milestones, since claims normally have to be made within set periods. Submit repair requests in writing with photos, and keep the response dates. Complete the homestead exemption application with the appraisal district, as described in the property tax guide, and check that the escrow on your mortgage reflects realistic taxes. Plan a one-year re-inspection, because settling and seasonal movement often reveal issues that were not visible at closing.