Buying a New Construction Home in Central Texas? 5 Questions to Ask Before You Sign

Let me ask you something: If you walk into a beautiful model home, fall in love with the kitchen, and hear that the builder is offering an incentive, do you already know what questions to ask before signing?

It's easy to get excited about a brand-new house. Everything looks fresh, the floor plan makes sense, and the sales office may have an attractive promotion. But the smartest move is to understand the entire purchase, not just the home you see on the tour.

Whether you're looking in Round Rock, Hutto, Pflugerville, Georgetown or elsewhere in Central Texas, here are five questions worth answering before you commit to a new construction home.

1. Who Is Representing Me During This Purchase?

A builder's on-site sales representative is there to explain the community, homes, options and the builder's sales process. That doesn't automatically mean the representative is acting as your real estate agent.

Before touring or discussing a specific transaction with a real estate agent, ask whether the agent represents you, the seller, or neither. In Texas, written agreements are required in certain residential buyer situations as of January 1, 2026; agreements must clarify the services and compensation, among other terms. You can review the Texas Real Estate Commission's explanation of the 2026 changes.

Ask: “Who represents my interests, what services will they provide, and how is the agent or broker compensated?” Compensation is negotiable, and you should understand your agreement before signing.

If you want independent guidance, talk with a Texas real estate professional early enough to understand your choices before entering a builder contract. Whether you decide to hire an agent is your decision.

2. What Will My Real Monthly Housing Cost Be?

Here's where reality needs to meet the beautiful model home. A quoted mortgage payment may not capture every expense you will actually face. Depending on the loan and property, your housing budget may need to account for principal and interest, property taxes, homeowners insurance, mortgage insurance, HOA dues, and utilities or maintenance costs.

Let's put a hypothetical example on paper. Imagine someone is looking at a $2,500 principal-and-interest payment. Then their planning worksheet includes $600 for monthly property taxes, $150 for homeowners insurance and $70 for HOA dues. Their illustrated total is now $3,320 per month, before utilities, maintenance or any mortgage insurance that may apply.

Those numbers are for demonstration only, not a tax estimate, loan quote or prediction for any community.

For new construction, also ask how property taxes were estimated. Texas generally appraises taxable property based on its January 1 value. A future year with a completed house may look different from an earlier year when construction was incomplete. Check with the local appraisal district and your lender rather than assuming the first estimate will remain unchanged.

Ask: “Can you show me a realistic full monthly cost, including taxes, insurance, HOA dues and any mortgage insurance—and what might change later?”

3. What Are the Actual Conditions of the Builder's Incentives?

A builder may advertise help with closing costs, an interest-rate promotion, or upgrades. Those offers can be valuable, but the details matter. An incentive may depend on a particular home, purchase date, financing arrangement, or other written conditions.

For example, an offer that sounds like “closing costs covered” is not necessarily the same as every upfront cost disappearing. And a promotional interest rate may come with specific financing terms. Have a licensed mortgage professional explain the numbers in the actual loan documents.

Ask: “What exactly is included, what are the conditions, when does the offer expire, and what happens if I use a different lender?”

Even if a builder recommends a preferred lender, the Consumer Financial Protection Bureau encourages buyers to compare lenders. Request comparable Loan Estimates to evaluate the total monthly payment, upfront costs and cash to close—not just one advertised incentive.

Need help organizing your preparation before you start touring? Use our FREE HBE 30-Day Mortgage-Ready Game Plan to get your questions, budget and next steps on paper.

4. Can I Arrange an Independent Inspection, and What Does the Warranty Cover?

“Brand-new” describes the age of a home. It doesn't mean you should stop asking questions about its condition.

Find out whether the contract permits your own inspection, when it can occur, and how the builder handles items identified before closing. Depending on construction stage and contractual access, buyers may also ask about pre-drywall or other phased inspections.

Texas licenses professional home inspectors, and the Texas Real Estate Commission publishes inspection Standards of Practice. An independent inspection can provide information about the home's visible condition, but it is not a guarantee that every issue will be discovered.

Warranties are separate from inspections. Ask the builder for the actual written warranty, including what is covered, how long different coverage lasts, how to submit a claim, and which maintenance responsibilities belong to you.

Ask: “Can I hire my own inspector, what happens if an issue is identified, and what does the written builder warranty actually cover?”

5. What Happens if the Closing Date, My Plans, or the Financing Changes?

This is the question people sometimes forget when they're focused on choosing cabinets and flooring. New construction contracts can contain important provisions about deposits, options, deadlines, construction changes, financing, cancellations and remedies if something doesn't go as expected.

Don't assume the builder uses the same contract as a resale home purchase. Have the actual contract explained before signing. Ask when deposits are due, what happens if a deadline moves, which upgrades are final, and what your options are if you can't proceed. For contractual rights or unusual provisions, consult an appropriately qualified Texas real estate attorney.

Ask: “What am I financially committed to today, what deadlines must I meet, and what happens if construction or financing changes?”

Before closing, compare your final figures with the Loan Estimate and review your Closing Disclosure. For most covered mortgages, lenders must provide the Closing Disclosure at least three business days before closing so you have time to review it and ask questions. The CFPB's closing-document guide explains what to review.

Your Next Step: Walk Into the Model Home With a Plan

Here's the thing: There's nothing wrong with falling in love with a house. Just make sure you also understand the financial commitment and the process behind it.

Before your next builder visit, write down these five questions, bring your budget, and decide who you want advising you. A little preparation helps you make a decision based on facts instead of excitement alone.

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If you enjoy talking through the process with other aspiring buyers, you can also request to join the Central Texas First-Time Homebuyer & Credit Club.

Richard Caldwell is a Texas real estate sales agent affiliated with Realty Texas LLC and the founder of HBE Credit Solutions; real-estate representation and credit services are separate, and neither is required as a condition of the other. This article provides general education, not individualized legal, tax, credit, financial or mortgage advice. Mortgage eligibility and financing decisions belong to the relevant lender. No credit-score change, mortgage approval, closing date or other outcome is guaranteed.