How to Buy a New Construction Home in Texas Step by Step
By Bobby Mohebbi, Realtor® | ABR®, PSA®, VA®, SFR® | Mohebbi Realty Group Last Updated: June 2026
Buying a new construction home in Texas follows a distinct process that differs significantly from purchasing a resale home. The key steps are: get pre-approved with a lender experienced in new construction and DPA programs, choose a buyer's agent before visiting any model homes, tour communities and compare builders, select your lot and floor plan, sign the builder's contract (not a standard TREC form), complete your design center selections, schedule independent pre-drywall and final inspections, and close on your new home. The entire process typically takes four to eight months for a build-to-order home or as little as 30 to 60 days for a completed inventory home. As a Realtor who has guided buyers through this process across Greater Houston since 2014, here is your complete roadmap.Step 1: Get Pre-Approved for Your Mortgage
Before you visit a single model home, get pre-approved with a mortgage lender. Pre-approval is different from pre-qualification — pre-approval involves a credit check, income and asset verification, and a conditional commitment from the lender for a specific loan amount. This establishes your realistic budget, identifies which loan programs you qualify for (FHA, VA, USDA, conventional), determines your eligibility for Texas down payment assistance through TSAHC or TDHCA, and gives you credibility with builders when you are ready to make an offer.
I recommend working with a lender who is approved to originate both TSAHC and TDHCA loans and has experience with new construction transactions. New construction purchases have different timeline considerations than resale — including construction draws, extended lock periods, and builder-specific documentation requirements — and a lender who understands these nuances will prevent unnecessary complications.
For clients I work with, I provide referrals to experienced lenders who specialize in the Houston new construction market, though you are always free to choose your own lender.
In most cases, securing a low 3.99% interest rate up to 4.5% is my goal for my buyer clients. Ask me how.
Step 2: Choose Your Buyer's Agent Before Visiting Model Homes
This step is critical and time-sensitive. Most builders require that your real estate agent accompany you and register on your very first visit to the model home or sales center. If you visit without your agent, the builder may refuse to recognize your agent later — meaning you lose the right to independent representation for that community.
Your buyer's agent works for you, not the builder. The on-site sales representative at the model home is employed by and loyal to the builder. Your agent's role is to provide objective guidance on which communities and builders align with your goals, compare pricing, incentives, and construction quality across multiple builders, review and negotiate the builder's contract (which differs substantially from standard Texas resale contracts), coordinate independent home inspections during and after construction, and manage the transaction through closing.
The builder typically pays the buyer's agent compensation as part of the transaction, so having your own representation does not cost you anything additional. The only requirement is that you register your agent from the start. Contact Bobby Mohebbi before your first visit.
Step 3: Research and Tour Communities
The Houston metro area has hundreds of new construction communities, and the differences between them go far beyond aesthetics. When evaluating communities, consider these key factors.
School zoning: Verify the specific school district and campus assignments for each community. School zoning can affect both your daily life and your home's long-term resale value. In the Greater Houston area, Katy ISD, Cy-Fair ISD, Fort Bend ISD, and Lamar CISD are among the districts serving major new construction markets.
Property tax rates: New construction communities frequently include Municipal Utility District (MUD) taxes that fund infrastructure development. Total effective tax rates in Houston-area new construction communities commonly range from 2.4% to 3.5% or higher. I provide detailed tax rate comparisons for every community my clients visit.
HOA fees and rules: Homeowners association dues vary widely — from $50 per month in some communities to $200+ per month in communities with extensive amenity packages. Review what the HOA covers (some include front yard maintenance, which saves you additional expense) and any restrictions that matter to you.
Commute access: Test the commute to your workplace from any community you are seriously considering, at the times you would typically be traveling. A community that looks ideal on paper may not work if the daily commute adds significant time.
Builder reputation: Not all builders are created equal. National builders like Lennar, D.R. Horton, Perry Homes, and Toll Brothers each have different approaches to construction quality, included features, warranty service, and customer communication. Regional and local builders offer their own strengths. Through my relationships with over 40 builders across Greater Houston, I provide my clients with firsthand insight into each builder's track record.
Step 4: Select Your Home — Inventory or Build-to-Order
You will choose between two types of new construction purchases.
Inventory (spec) homes are homes the builder has already started or completed. These offer faster move-in timelines (30 to 60 days for completed homes) and the ability to see exactly what you are getting before committing. Builders often offer enhanced incentives on inventory homes they want to sell quickly. The trade-off is limited or no ability to select finishes, floor plan modifications, or lot location.
Build-to-order (pre-sale) homes allow you to select your floor plan, lot, and design center finishes from scratch. The build timeline is typically four to eight months, depending on the builder and floor plan complexity. This option gives you maximum customization but requires patience and a lender who can accommodate an extended timeline.
In either case, I help you evaluate the pricing, incentive structure, and total cost of ownership before you commit.
Reminder: Most builders offer HUGE incentives on inventory homes and you must steal the deal! Contact Bobby Mohebbi to find the best deal on an inventory or spec home.
Step 5: Negotiate and Sign the Builder's Contract
Builder contracts are not standard Texas Real Estate Commission (TREC) forms. They are custom documents drafted by the builder's legal team, and they are written to protect the builder's interests. Key provisions to understand and potentially negotiate include the earnest money amount and refund conditions, the option period (if any — some builders do not offer a traditional option period), construction timeline language (estimated completion dates are typically not guaranteed), the builder's right to substitute materials of comparable quality, upgrade pricing and what happens if you want to make changes after signing, warranty terms and coverage exclusions, and cancellation penalties.
As your Accredited Buyer Representative, I review every line of the builder's contract before you sign. My goal is to ensure you understand exactly what you are agreeing to and that any provisions that could disadvantage you are identified and, where possible, negotiated.
Step 6: Complete Your Design Center Selections
If you are purchasing a build-to-order home, you will typically visit the builder's design center to select your finishes — countertops, cabinets, flooring, tile, fixtures, paint colors, and other options. This is one of the most exciting parts of the process, but it can also be one of the most expensive if you are not careful.
Design center upgrades are priced at retail or above-retail rates, and it is easy to add $20,000 to $50,000 or more in upgrades without realizing how quickly costs accumulate. My guidance to clients is to prioritize structural upgrades that are difficult or expensive to add after construction (like additional electrical outlets, pre-wiring for technology, plumbing rough-ins for future additions, or upgraded insulation), be selective about cosmetic upgrades (some items like light fixtures, hardware, and backsplash tile can be purchased and installed independently after closing at a fraction of the builder's price), and keep a running total throughout the design center visit so you stay within your budget.
Step 7: Monitor Construction and Schedule Inspections
During the construction phase, your builder will provide periodic updates on progress. Some builders offer online portals with photos and milestone tracking; others rely on their sales team for communication.
Regardless of how the builder communicates, I recommend two critical independent inspections.
Pre-drywall inspection ($250 to $450): Conducted after framing, plumbing, electrical, and HVAC installation are complete but before drywall is hung. This is your best opportunity to catch hidden issues — improperly routed ductwork, missing insulation, framing defects, incorrect plumbing connections — while they are still visible and easily correctable.
Final inspection ($300 to $500): Conducted after the home is complete but before closing. This comprehensive evaluation covers the finished condition of all systems and surfaces, identifies cosmetic and functional deficiencies, and creates a punch list for the builder to address before you take ownership.
I coordinate these inspections with trusted independent inspectors who specialize in new construction and work directly with the builder to ensure any issues are resolved.
Step 8: Final Walkthrough and Closing
Before closing, you will conduct a final walkthrough of the completed home with the builder's representative. This is your opportunity to verify that all agreed-upon features and finishes are in place, any inspection punch-list items have been resolved, appliances are installed and operational, and there are no visible damage or unfinished work.
I attend every final walkthrough with my clients to ensure nothing is overlooked and that the home is in acceptable condition before you sign closing documents.
At closing, you will sign your mortgage documents, pay any remaining closing costs (after DPA, builder credits, and other adjustments), and receive the keys to your new home. The entire closing process typically takes one to two hours at the title company.
After Closing: What to Know About Your Builder Warranty
Texas law requires builders to provide certain warranty protections, and most major builders offer a structured warranty that typically includes one year of coverage on workmanship and materials, two years on mechanical systems (plumbing, electrical, HVAC), and ten years on structural components.
Read your warranty documentation carefully and understand the claim process, timeline requirements, and any exclusions. I encourage all my clients to conduct a thorough walkthrough at the 11-month mark — just before the one-year warranty expires — to identify any issues that should be submitted as warranty claims before coverage lapses.
Frequently Asked Questions
How long does it take to buy a new construction home in Texas?
For a completed inventory home, the process from contract to closing typically takes 30 to 60 days. For a build-to-order home, the total timeline from contract signing through construction and closing is typically four to eight months, depending on the builder and floor plan.
Do I need a real estate agent to buy new construction?
While not legally required, having your own buyer's agent is strongly recommended. The builder's on-site sales representative works for the builder. Your agent provides independent representation, contract review, incentive negotiation, and inspection coordination at no direct cost to you (the builder pays).
Can I negotiate the price on a new construction home?
Builders are generally less flexible on base price than resale sellers, but there are numerous negotiation points: closing cost credits, rate buydowns, design center allowances, lot premium reductions, and included upgrades. The negotiation leverage available varies by builder, community, and current inventory levels.
What inspections do I need on a new construction home?
I recommend a pre-drywall inspection (while framing and systems are exposed) and a final inspection before closing. Combined cost is $500 to $900. These are independent of the municipal building inspections and any VA or FHA appraisal.
Can I use my VA or FHA loan on new construction?
Yes. VA, FHA, USDA, and conventional loans are all accepted by Houston-area builders. VA loans offer zero down payment; FHA requires 3.5% down (which can be covered by DPA). Ensure your lender has experience with new construction timelines.
What is the difference between a builder's contract and a TREC contract?
TREC (Texas Real Estate Commission) contracts are standardized forms used for most resale transactions in Texas. Builder contracts are custom documents drafted by the builder's attorneys. They typically include different provisions around cancellation, timelines, material substitutions, and warranty. Having an experienced buyer's agent review the contract is essential.
Should I use the builder's preferred lender?
It depends. Builders often offer their best incentive packages when you use their preferred lender, and these incentives can be substantial. However, the preferred lender's rate and fee structure may not always be the most competitive option. I help clients compare the preferred lender's total cost against outside options to determine which provides the best overall value.
Bobby Mohebbi is a licensed Texas Realtor® and the leader of the Mohebbi Realty Group with Keller Williams Signature, specializing in new construction home purchases across Katy, Cypress, Fulshear, Richmond, Sugar Land, and Greater Houston since 2014. He holds the ABR®, PSA®, VA®, and SFR® designations, a BBA from the University of Houston, and maintains relationships with over 40 homebuilders. Contact Bobby at 832-455-3565 or Bobby@mohebbirealtygroup.com. Equal Housing Opportunity. Mohebbi Realty Group does not discriminate on the basis of race, color, religion, sex, national origin, familial status, disability, or any other characteristic protected under federal, state, or local fair housing laws.