Last Updated on: 7th August 2023, 07:31 pm

Are you considering moving to Midland, TX this year? Midland is a city in western Texas and is the county seat of Midland County. Known as the halfway point between Fort Worth and El Paso, Midland is a great place to live for families, young professionals, and retirees. Midland has a population of 132,524, which is a 19% increase over the past decade. The median household income in Midland is $87,900, which is much higher than the Texas average of $67,321. The extra income in Midland will help you live very comfortably as Midland is an affordable place to live.

If you are thinking about buying a house in Midland, TX, then you are in luck! The Midland real estate market is booming, and housing prices are up from last year. Although prices are on the rise, homes in Midland are still very affordable. In fact, Business Insider named Midland as the number one place to buy a home for a good deal in 2022.

Buying a home in Midland can be an intimidating process, especially if you are a first time home buyer. With the proper research, however, you will be holding the keys to your new home in no time! Here’s everything you need to know about how to buy a house in Midland.

The Steps to Buying a House in Midland

If you are a first time home buyer in Midland, TX, then there are a few things to keep an eye on. The Midland real estate market changes from month to month, so it is important to know how the home buying process works. These are the proper steps to buying a house in Midland.

How Much Does It Cost to Buy a House in Midland?

Although the final price is a big factor when buying a house in Midland, Texas, it is not everything. There are many factors you need to take into consideration when purchasing Midland, TX real estate. Before purchasing a home, you need to consider variables such as mortgage, homeowner’s insurance, and property taxes. You will also need to decide whether or not you can afford to live in the city by considering everyday expenses such as transportation, food, childcare, gas, and utilities. These extra expenses will all add up and can create a hefty expense on top of the home sale.

Before buying a house in Midland, you will want to determine your budget. The first step to planning out your budget is to figure out your gross income and your monthly debt payments. When you get ready to apply for a mortgage, your lender will often require you to have a debt-to-income ratio of 36% or lower. Your debt-to-income ratio is the percentage of your income that you spend on your mortgage. Homeowner’s insurance, HOA fees, property taxes, and interest are all included in your final mortgage amount.

One of the best ways to determine how much you can spend on a new home is to use an affordability calculator. According to Zillow’s calculator, if you meet the Midland average household income of $87,900, have a monthly debt payment of $300, and make a down payment of $20,000, then you can afford a house up to $312,472. This comes out to $2,324 per month.

In Midland, property taxes are calculated based on the total assessed value of the property (property value + improvements value – exemptions) divided by $100 and then multiplied by the tax rate (0.355039). According to the Midland Reporter-Telegram, the average tax bill for homeowners in Midland ranges from $4,432 to $4,985 per year.

Another factor to consider before you buy a house in Midland is the cost of living. The Cost of Living Index in Midland is 92.2, which means that it is 7.8% more affordable than the national average of 100. After you buy a home in Midland, you can expect an average monthly utility bill of $148.54. You can also expect an HOA fee ranging anywhere from $10 to $600 a month.

What is the average home price in Midland?

According to Redfin, the average home price in Midland is $265,000, which is up 23.4% compared to last year. Although the prices are up, they are still much lower than the national average of $418,379. On average, homes in Midland are on the market for 49 days. Therefore, the Midland TX real estate market is competitive but not impossible to navigate.

Where is the best place to buy a house in Midland? A few of the best areas to buy a house in Midland include Moody (average home price of $164,000), Barberdale (average home price of $285,000), and Grassland Estates (average home price of $452,000). These Midland neighborhoods are safe and are close to many of Midland’s best attractions and top-rated schools.

Find the Right Mortgage and Get Pre Approved

Once your budget is figured out, then you need to qualify and get pre-approved for a mortgage. This lets the seller know that you are serious and ready to buy a house in Midland, TX. A pre-approval can also increase your chances of getting an offer accepted. You should get pre-approved for a mortgage no later than a year before you put in an offer. 

There are a few types of loans for you to consider. Some of the most popular types include conventional, fixed rates, and adjustable rates. A conventional loan is not insured or guaranteed by the government. A fixed-rate loan has a specific interest rate for the entire term of the loan. An adjustable rate loan has an interest rate that changes over time based on the current real estate market.

It is also important to look out for factors that can affect your pre-approval. Some of these factors are:

  • Credit score: The higher your credit score is, the better your chances are to get approved for a loan and obtain a good interest rate.
  • Down payment: It is essential to put down the highest down payment you can without breaking the bank. Most lenders require at least a 10% down payment; however, 20% or more is preferred.
  • 28/36 rule: The 28/36 rule explains that your total housing costs should not exceed 28% of your gross monthly income, and your total debt payment should not exceed 36%.
  • Mortgage payment: Lenders will take a look at your income and assets to determine the amount you can afford to pay back each month.

Midland first time homebuyer programs

Are you house hunting in Midland for the first time? There are a few programs that you can look into as a first time home buyer in Midland.

  • Homebuyer Assistance Program: This program provides assistance to low income first time home buyers in Midland. You can receive up to $15,000 of financial assistance to help with the purchase of a home located in the city. To qualify, you need to go through homeownership training, quality for a primary mortgage, and put down a $1,000 minimum investment.
  • TDHCA My First Texas Home: This program consists of a 30-year mortgage with a low interest rate and up to 5% in interest-free down payment assistance. You can also obtain an FHA, VA, or USDA loan through this program. To qualify, you must be a first-time home buyer, have a minimum credit score of 620, and meet the income and property value limits.
  • TSAHC Home Sweet Texas Home Loan Program: The Home Sweet Texas Home Program is offered through the Texas State Affordable Housing Corporation and offers a 30-year fixed-rate mortgage and up to 5% down payment assistance. This loan is offered in the form of either a grant or a second mortgage and has no interest and no monthly payments. To qualify, you need to have at least a 620 credit score and meet income and purchase price limits.

Find a Midland Real Estate Agent

Working with a real estate agent in Midland is a great way to navigate the process of buying a house in Midland. An experienced agent can show you homes, talk with the sellers, and get you the best deal possible. It is recommended to work with a buyer’s agent rather than a listing agent. Buyer’s agents are legally bound to help you as the buyer, whereas listing agents represent the home listing and may not have your best interest in mind at all times.

In order to find the best Midland, Texas real estate agent, you should sit down with multiple agents to find someone who is a good fit for your home-buying needs.

Go Midland House Hunting

When buying a house in Midland, you need to have a good idea of what you are looking for. Before house hunting, you should do some research on the areas you may want to move to. If you are moving with children, then you may want to consider neighborhoods close to top-rated schools in Midland. If you are young, then you may want to find a home closer to the downtown area. In addition to the area, you will also want to make a list of your ideal home features. Have a good idea of the square footage, style of home, and number of rooms you are looking for. You can give all of this information to your buyer’s agent so they can better assist you.

Submit an Offer!

When learning how to buy a house in Midland, TX, submitting an offer is one of the most important tasks. Once you have decided on a home, it is time to make an offer. Your buyer’s agent will help you write an application that will be appealing to the seller. They can also help you decide on an offer price.

Oftentimes, a seller will come back with a counteroffer asking for more money or fewer contingencies. Once you and your agent negotiate with the seller and agree on an offer, then it is time to go under contract. Before the last day of escrow, you have to complete an inspection and get an appraisal done. This allows you to retract your offer if you find something that the seller did not disclose. Once this is completed, it’s time to close the deal!

Close on Your Midland Home!

After the appraisal and inspection, you will enter into the closing process and finalize your mortgage through the underwriting process. You and your agent will look over everything one last time and then sign the closing documents. The closing process often takes 60-90 days, so you will likely not get access to your new home right away.

Congratulations on buying a house in Midland! Once you have a home, you need to contact the best Midland movers to help you. Give Brothers Moving & Storage a call today at (432) 219-2829 to discuss your move and receive a free quote.