Your Complete Home Buying Guide for Katy
- Katie Curran
- 3 days ago
- 5 min read
By Katie Curran, REALTOR® | Keller Williams Signature
TL;DR:
Buying a home in Katy, TX? This guide walks you through every step—from credit requirements and down payment assistance to Texas-specific processes like the option period, local property taxes, and top master-planned communities. Whether you're a first-time buyer or upgrading, you'll learn how to navigate Katy's competitive market with confidence.
Katy, Texas continues to attract homebuyers from across the country, and it's easy to see why. This West Houston suburb offers award-winning schools, thoughtfully designed master-planned communities, and strong property values—all while maintaining that authentic Texas feel. If you're considering buying a home here in 2026, understanding the local market and Texas-specific buying process will help you make informed decisions from start to finish.
Getting Your Finances Ready
Before you start touring homes, take time to strengthen your financial foundation. Most lenders in 2026 require a credit score of at least 620 for conventional loans, though FHA loans may accept scores as low as 580 with a 3.5% down payment. If your score is below 500, you can still qualify for FHA financing with a 10% down payment. Check your credit early and address any issues before applying for pre-approval.
Down payments typically range from 3.5% to 5% of the purchase price, but Texas offers several assistance programs that can help. The Texas State Affordable Housing Corporation (TSAHC) provides grants and mortgage credit certificates, while the Texas Department of Housing and Community Affairs (TDHCA) offers low-rate loan options. Local programs may also be available for educators, veterans, and first responders.
Plan for closing costs of 2% to 5% of the home's price, and expect to provide earnest money—usually 1% to 3% of the purchase price—as a good faith deposit when you make an offer. This money goes toward your down payment at closing.
Understanding the Texas Home Buying Process
Texas follows a unique timeline with some terms you won't encounter in other states. Start by getting pre-approved, not just pre-qualified. Pre-qualification is an informal estimate, while pre-approval involves verified documentation from your lender and shows sellers you're a serious buyer in Katy's competitive market.
The typical timeline looks like this: pre-approval takes one to two weeks, house hunting can span one to three months, and once you're under contract, expect 30 to 45 days to closing. The entire process usually takes two to six months depending on inventory and your financing situation.
One of the most important features of buying in Texas is the option period. This seven to ten day window, unique to Texas real estate contracts, gives you time to conduct inspections and negotiate repairs before you're fully committed. During this period, you can withdraw from the contract for any reason by paying a small fee, typically $100 to $300. This protection is invaluable for buyers who want to make sure they're making the right choice.
Home inspections examine the property's structure, systems, HVAC, and foundation—especially important in humid Gulf Coast climates like Katy's. The appraisal, ordered by your lender, confirms the home's fair market value and protects their investment.
What Makes Katy Different
Property taxes in Katy range from 1.85% to 3.67% depending on your neighborhood and school district. Many newer master-planned communities have slightly higher rates because of Municipal Utility Districts (MUDs) or Public Improvement Districts (PIDs) that fund infrastructure like roads, water systems, and parks. Once you close, apply for the Texas Homestead Exemption to reduce your taxable home value by at least $25,000, which can save you hundreds of dollars annually.
Katy ISD has earned the number one ranking in the Houston area for five consecutive years, with several campuses receiving national recognition. Families often choose neighborhoods based on school proximity, though you should always verify attendance zones directly through the district website.
Flood insurance requirements vary by location and lender. Some areas of Katy fall into FEMA flood zones, which means you'll need coverage. Policies typically cost between $500 and $1,200 per year in moderate-risk areas. Check the FEMA Flood Map Service Center or consult with a licensed insurance agent to understand your specific requirements.
Katy features some of the Houston area's most desirable master-planned communities. Cinco Ranch offers established amenities and mature landscaping. Elyson attracts buyers with new construction and resort-style pools and recreation centers. Cane Island provides quick access to I-10 with luxury home options. Tamarron delivers family-friendly amenities at more accessible price points.
Choosing Between New Construction and Resale Homes
Katy's housing market includes both new builds and resale properties, each with distinct advantages. New construction offers modern floor plans, energy-efficient features, and builder warranties, though construction timelines can extend several months. Resale homes provide established neighborhoods, mature trees, and often lower property tax rates since they're not subject to MUD or PID assessments.
Compare HOA fees carefully, as they can range significantly depending on amenities. Most cover common area maintenance, pools, parks, and sometimes even lawn care.
Working with the Right Team
As of January 1, 2026, Texas requires a buyer representation agreement before agents can show you homes. This new law ensures your agent formally represents your interests throughout the transaction, providing clarity and protection for everyone involved.
Beyond your real estate agent, you'll work with a lender who handles your loan and rate lock, an inspector who evaluates the property's condition, and a title company that manages escrow and ownership transfer. In Texas, sellers typically pay for the owner's title insurance policy, though this is negotiable.
If you're ready to explore homes in Katy or have questions about the buying process, our team is here to help you navigate every step with confidence.
FAQs
Q: How long does it take to buy a home in Katy?
A: The entire process typically takes two to six months from pre-approval to closing. Pre-approval takes one to two weeks, house hunting can span one to three months, and once you're under contract, expect 30 to 45 days until you receive the keys. Your specific timeline depends on loan processing speed, inspection schedules, and how quickly you find the right property.
Q: What is the option period in Texas real estate?
A: The option period is a seven to ten day window unique to Texas contracts that gives you time to conduct inspections and request repairs before you're locked into the purchase. During this time, you can terminate the contract for any reason by paying a small fee, usually $100 to $300. If you're ready to start your home search in Katy, explore available properties to see what fits your needs.
Q: Should I buy new construction or a resale home in Katy?
A: New construction offers modern layouts, energy efficiency, and builder warranties, but construction can take several months. Resale homes provide established neighborhoods, mature landscaping, and often lower property taxes since they're not subject to MUD or PID assessments. Your choice depends on your timeline, budget, and whether you value customization or move-in readiness more.
Q: Who pays for title insurance in Texas?
A: In Texas, the seller typically pays for the owner's title insurance policy, though this is negotiable during contract negotiations. Buyers usually pay for their lender's title insurance policy, which protects the mortgage company's interest. If you're considering buying in neighborhoods like Katy or surrounding communities, understanding these costs upfront helps you budget accurately.
Q: What are property tax rates in Katy?
A: Property tax rates in Katy range from 1.85% to 3.67% depending on your specific neighborhood and school district. Newer master-planned communities often have higher rates because of Municipal Utility Districts (MUDs) or Public Improvement Districts (PIDs) that fund infrastructure. Once you purchase, apply for the Texas Homestead Exemption to reduce your taxable value by at least $25,000.
By Katie Curran, REALTOR® | Keller Williams Signature
Katie Curran | Houston Area REALTOR® | Keller Williams Signature
920 S Fry Rd, Katy, TX 77450
713-598-1889 | katie@mkatgroup.com | https://www.mkatgroup.com
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