Families busy with moving preparations often misunderstand that closing costs are included in the down payment. Recently, a family relocating to the Irving area found out just a week before closing that they needed additional funds after only preparing the down payment. There are six key items to check in order.

The recent median sale price in Irving is $383,000 (based on the last three months, down 1.9% from the previous year, according to Redfin). On average, two offers are received, and transactions occur within 39 days, indicating a somewhat competitive market. The price per square foot has decreased by 4.7% to $205 compared to last year.

The first item to check is the closing costs. This typically ranges from 2% to 5% of the sale price, meaning for a $383,000 home, you will need between $7,700 and $19,200 in addition to the down payment.

The second item is property tax. According to worldpopulationreview.com, the average effective tax rate in Texas is 1.63%, while the county average is 1.81% according to tax-rates.org. For a home in the $380,000 range, the annual property tax could be between $6,200 and $6,900, which can significantly differ from just calculating the mortgage principal and interest.

The third item is mortgage pre-approval. Irving is a region where many people relocate quickly from other states due to job transfers, so it's common to see buyers looking at homes before securing a loan, which can lead to missing out on competitive offers. It's advisable to compare rates from multiple lenders.

The fourth item is having a reserve fund. If all your funds are used for the down payment, it can be difficult to handle unexpected expenses after moving in. It's wise to consider that there will be more expenses than anticipated in the initial moving phase.

The fifth item to manage is credit. If you buy a new car or increase credit card spending around the time of a job change or move, your debt-to-income ratio may fluctuate, potentially altering your loan terms right before closing. It's safer to postpone large expenses until the contract is finalized.

Lastly, consider your commute distance and long-term living plans. Choosing a neighborhood close to work or one with a good school district is not solely a budget decision. Your priorities may change depending on how long you plan to live there.

• Closing costs - Prepare 2% to 5% of the sale price, separate from the down payment
• Property tax - Texas average effective tax rate of 1.63% to 1.81% (worldpopulationreview.com, tax-rates.org)
• Mortgage pre-approval - Compare rates from multiple lenders before viewing properties
• Reserve fund - Do not exhaust all funds on the down payment
• Credit management - Postpone large expenses until after closing
• Commute and long-term living plans - Set priorities along with your budget

If you are a Korean family, you may also want to consider school districts. While referencing ratings from GreatSchools or Niche, keep in mind that school boundaries change frequently, so it's best to verify the assigned school for the specific address before purchasing.

The family that urgently gathered funds ended up borrowing money from relatives to complete the closing. They later organized these six items into a checklist for future moves or investment properties, checking them off one by one. Having a set order reduces the chances of missing items in urgent situations.

Irving is also close to DFW Airport, making it a common area for business travelers and corporate expatriates. If your stay may be short, it's wise to consider the potential for resale or rental conversion when selecting properties. If your company offers relocation packages, check if they can assist with some of the closing costs.

This article is not investment or legal advice, and tax and loan conditions may vary by county and individual circumstances, so it's advisable to consult with a professional before finalizing any contracts.