Buyer Tool

The New Construction
Buyers Checklist.

A builder’s estimated payment is a starting point, not a promise. Work through this checklist before you sign, then keep it for your first year in the home. Tick items as you go and the count keeps your place on this page.

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Built for Collin and Denton County buyers

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Before You Sign

Nine questions for the builder.

Every item here is a question you can ask in writing. The answers tell you what the quoted payment really covers.

Ask for a line-by-line breakdown of the quoted paymentFind out which costs the estimate already includes, so you do not count one twice or miss one entirely.
Confirm the interest rate, down payment, and tax figure behind the estimateThe payment is built on assumptions. Change any one of them and the payment changes.
Ask whether the tax figure is based on the lot, a partly built home, or the finished homeThis is the number that most often moves after you move in.
Ask for an estimate of the tax bill once the home is fully valued
Confirm whether the home is in a MUD and read the MUD notice before you signTexas requires sellers to give buyers a MUD notice before the contract is signed.
Ask whether the home is in a PID and what the yearly assessment is
Get the HOA dues, what they cover, and any one-time fees at closing
Get a homeowners insurance quote earlyPrices vary by home and by company.
List what comes with the home and what you will buy after move-inWindow coverings, fencing, landscaping, appliances, and gutters differ by builder.

Escrow

Plan for your first full tax bill.

Texas appraisal districts value property at market value as of January 1. If your home was still being built on that date, your first tax bill may not reflect the finished home. Your escrow payment is set to match that lower bill, then the home is valued as finished and the bill goes up.

This is not a mistake by your builder or your lender. It is how the timing works. But it is easier to plan for when you see it coming.

Confirm how your property taxes are paidMost buyers pay through an escrow account. Part of each payment goes in, and the lender pays the bill when it comes due.
Ask what your first tax bill is likely to be based onIf the home was not finished on January 1, the first bill may reflect a partly built home, or only the lot.
Ask when the lender reviews the escrow accountReviews usually happen once a year. If the account did not collect enough, you have an escrow shortage.
Decide how you would handle a shortageYou may be asked to cover it in one payment or spread it across the next year of payments.
Set money aside each month for the differenceA higher payment feels expected instead of sudden when you have been planning for it.

See the escrow example in the full article →

Homestead Exemption

File it after you move in.

Once you own the home and live in it as your primary residence, file for a homestead exemption with your county appraisal district. A homestead exemption lowers your taxable value and can also limit how much that value can rise each year. It does not happen automatically.

Confirm you will live in the home as your primary residenceA homestead exemption applies to the home you live in as your primary residence.
Find your county appraisal districtCollin CAD for Collin County homes, Denton CAD for Denton County homes.
File for the homestead exemption after you move inIt lowers your taxable value and can limit how much that value rises each year.
Add the filing to your move-in checklistIt does not happen automatically.

The Costs To Look For

Same price, different monthly cost.

Two homes with the same price and the same loan can cost very different amounts to live in. These are the line items that move the difference.

Recurring

Property taxes

Often one of the biggest parts of the monthly payment. Your total rate combines the city, county, school district, and any special districts.

Recurring

MUD taxes and PID assessments

Some newer communities use a Municipal Utility District to pay for water and sewer lines, and it can charge its own property tax. A Public Improvement District can add its own yearly assessment.

Recurring

HOA dues

Ask for the amount, what it covers, and whether there are one-time fees at closing.

Annual

Homeowners insurance

Get a quote early. Prices can vary by home and by company.

One-time

Move-in costs

Builders differ on what comes with the home. These may not change your mortgage payment, but they change how much cash you need.

Timing

The first full tax bill

A home still being built on January 1 may have a first bill that does not reflect the finished home. Later bills can be higher.

Sources

This checklist is general information for buyers in Collin and Denton County. Tax figures, district rates, and HOA terms vary by home and community, so confirm each one for the property you are considering.

Start Your Clarity Call

Bring the numbers, and we will read them together.

Send me the builder’s payment estimate and we will look at what is inside it, what is missing, and what your first two years are likely to cost.

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Book Your Clarity Call

Pick a time that works for you.

A short, no pressure conversation to understand your goals and give you a clear next step, whether you are buying, selling, or simply exploring your options.

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The New ConstructionBuyers Checklist.

Nine questions for the builder.

Plan for your first full tax bill.

File it after you move in.

Same price, different monthly cost.

Property taxes

MUD taxes and PID assessments

HOA dues

Homeowners insurance

Move-in costs

The first full tax bill

Bring the numbers, and we will read them together.

Pick a time that works for you.

The New Construction
Buyers Checklist.