Thinking about buying a home in El Paso and not sure where to start? You are not alone. Texas contracts, the Option Period, and closing costs can feel confusing the first time you see them. This guide breaks it all down in plain language so you know what to expect, what to budget, and how to move with confidence in El Paso County. Let’s dive in.
Step 1: Get pre-approved
A strong pre-approval sets your budget and helps your offer stand out. Your lender will review income, assets, credit, and debts to issue a pre-qualification or a full pre-approval. This can take 1 to 14 days depending on how fast documents are provided. Aim to finish this before serious house hunting.
Bring these documents to speed things up:
- Last two pay stubs and last two years of W-2s or tax returns
- Two to three months of bank statements and ID
- Any bonus/commission documentation and info on other debts
Step 2: Search homes and neighborhoods
Work with an agent to narrow your target areas, commute needs, and HOA preferences. El Paso’s market shifts by season, neighborhood, and price point, so recent local data helps you set expectations on price and days on market. Consider proximity to I-10, downtown, medical centers, and Fort Bliss if that affects your day-to-day. Be sure to review HOA rules, utility providers, and any special assessments before you make an offer.
Step 3: Make an offer with Texas forms
Your agent will draft your offer using standard Texas Real Estate Commission (TREC) forms. You will set price, closing date, earnest money, an Option Period, and any contingencies. Sellers provide a Seller’s Disclosure Notice, and homes built before 1978 require a lead-based paint disclosure. Expect a seller reply within 24 to 72 hours, though timing varies.
- Earnest money: Commonly around 1 to 2 percent of the price, held in escrow. It shows serious intent and is generally refundable if you cancel under allowed contract rights.
- Option fee: A separate fee paid directly to the seller for your right to terminate during the Option Period. In many Texas resale deals this is often $100 to $500, depending on the market.
How the Option Period works
The Option Period is commonly 3 to 10 days, often 5 to 7. You can terminate for any reason during this time and typically keep your earnest money, but the option fee is usually nonrefundable. Most buyers use the Option Period to complete inspections and negotiate repairs or credits.
Example: You agree to a 7-day Option Period, pay a $300 option fee, and deposit 1 percent earnest money in escrow. If inspections reveal issues you are not comfortable with, you can cancel within the 7 days, lose the $300 option fee, and receive your earnest money back per the contract.
Step 4: Inspect and investigate
Schedule inspections as soon as the Option Period begins. Standard checks include the general home inspection plus roof, HVAC, plumbing, and electrical evaluations. In El Paso’s desert climate, cooling systems and roof condition are high priorities. Many lenders also request a termite or wood-destroying insect report (WDI).
If the property includes any of the following, plan specialty inspections:
- Pool or spa systems
- Well and septic (common in rural parts of the county)
- Foundation or structural concerns
- Radon if desired
Also check flood risk at the parcel level. Some areas require flood insurance if the home lies in a special flood hazard area. Ask your agent to review known local risk factors before you finalize repairs and credits.
Step 5: Appraisal and underwriting
After you are under contract, the lender orders an appraisal to confirm value. Underwriting reviews your full file and may request more documents or repairs. Appraisal and underwriting typically take 2 to 4 weeks. The most common delays come from appraisal turn times and documentation.
Step 6: Title work and surveys
The title company checks for liens and encumbrances and issues a title commitment with exceptions that must be cleared before closing. Customs on who pays for an owner’s title policy vary by market and can be negotiated in El Paso. Your lender may require a current survey or allow reliance on an existing one if it meets contract requirements. Boundary issues or survey updates can add time, so start this early.
Step 7: Understand taxes and closing costs
Texas property taxes are assessed locally. In El Paso County, you can review parcel assessments and explore homestead and other exemptions with the appraisal district after closing. Ask early about estimated taxes for your specific address so your monthly payment estimate is accurate.
Budget for these common buyer costs:
- Down payment: Conventional often 3 to 20 percent; FHA typically 3.5 percent; VA and USDA may offer 0 percent for eligible buyers
- Earnest money: Often 1 to 2 percent of the price, applied at closing
- Option fee: Often $100 to $500
- Inspections: General $300 to $600; specialty inspections vary
- Appraisal: Commonly $300 to $700
- Survey: Often $300 to $800 or more if required
- Closing costs: Typically 2 to 5 percent of the price, including lender fees, title/escrow, recording, and prepaids for taxes and insurance
- HOA: Transfer fees and prorated dues if applicable
Your lender must provide a Closing Disclosure at least 3 business days before closing. Review it line by line to confirm cash to close and that all negotiated credits appear.
Step 8: Final walk-through and closing
Most conventional deals close about 30 to 45 days after the contract is executed. Before closing, complete a final walk-through to confirm the home’s condition and agreed repairs. At closing, you will sign loan and title documents at the title company and wire funds or bring a cashier’s check for your cash to close. Title is recorded and possession follows the contract terms, often the same day.
Mortgage choices and assistance
Most buyers in El Paso choose from conventional, FHA, VA, or USDA loans. Each option has different down payment, mortgage insurance, and credit requirements. State programs through the Texas Department of Housing and Community Affairs may offer down payment assistance or favorable terms for eligible buyers. City or county programs and nonprofit counseling may also help first-time buyers. Ask your lender and agent to confirm current availability and income limits.
Strategy in competitive moments
If you face multiple offers, focus on clarity and confidence. A complete pre-approval, realistic closing timeline, and clean contract terms can help. You can also consider strengthening earnest money or the option fee, within your comfort zone. Avoid waiving important protections without a clear understanding of the risks.
When to walk away
You can terminate during the Option Period if inspections or disclosures reveal issues that do not fit your plans or budget. Title or survey problems that cannot be resolved are another red flag. Appraisal gaps you cannot bridge with the seller or your lender may also be a reason to step back. Your goal is to buy a home you feel good about for the long term.
Typical timeline at a glance
- Pre-approval: 1 to 14 days
- Home search: 2 weeks to several months
- Offer and negotiation: 1 to 3 days to write; 1 to 3 days for seller response
- Option Period and inspections: commonly 3 to 10 days
- Appraisal and underwriting: 2 to 4 weeks
- Title and survey: runs in parallel with underwriting
- Closing: often 30 to 45 days from contract to keys
Work with a broker who knows El Paso
You deserve a clear plan, strong negotiation, and practical insight on construction, repairs, and value. Our brokerage is broker-led and hands-on, with deep local experience across single-family, multi-family, land, and small commercial. We offer bilingual service and practical guidance so you can move from offer to keys with confidence.
Ready to talk next steps? Reach out to David Torres to review your goals, get a personalized plan, and Schedule a Consultation / Agenda tu consulta. Ask about our buyer guide and how to prepare a winning offer in today’s El Paso market.
FAQs
How long does buying a home in El Paso take?
- From contract to closing, most loans take about 30 to 45 days; pre-approval and the home search can add several weeks or more depending on your pace.
What are typical earnest money and option fee amounts in Texas?
- Both are negotiable; earnest money often ranges around 1 to 2 percent of price, while option fees for resale homes are often $100 to $500 depending on market conditions.
What can I cancel for during the Texas Option Period?
- During the Option Period you can terminate for any reason, usually keep your earnest money, and typically forfeit only the option fee per the contract terms.
Who pays closing costs in El Paso, Texas?
- It is negotiable; buyers commonly pay lender-related and some title costs, and sellers may pay some items or credits depending on local custom and the contract.
Are home warranties common in El Paso purchases?
- Home warranties are optional; some sellers offer a one-year warranty as a concession, but it is not required and can be negotiated.
What inspections matter most for El Paso homes?
- Focus on the general inspection, HVAC and roof condition, a termite/WDI report, and any specialty checks for pools, wells/septic, foundation, or flood risk as applicable.
