Moving to the Texas Hill Country From Out of State: A Plan

If you’re moving to the Hill Country from another state, the plan that works is simple. Narrow your towns before you fly in, get pre-approved before you tour seriously, and after closing, handle the Texas paperwork in order: register your vehicles, then get your Texas driver license, then file for your homestead exemption. Each of those steps leans on the one before it.

I live in Canyon Lake by choice, and this is the order I’d follow.

Step 1: Narrow your towns before you visit

Canyon Lake, New Braunfels, Bulverde, Spring Branch, San Marcos and Seguin can all show up in one search. Compare them on features, not photos.

• Inside or outside city limits. Property tax in Texas is local, so your bill depends on the county, school district, city and special districts an address falls in (Texas Comptroller).
• Water and sewer. City water and sewer, a MUD or water co-op, or a private well and septic system. Know which one you’re shopping for.
• Lake rules. At Canyon Lake, the federal government owns the lake bed and a strip of land around it, and the Corps doesn’t allow docks or other private construction there. It’s a flood control lake, so the level moves year-round.
• Flood risk. Look up any address on FEMA’s Flood Map Service Center, the official public source for flood hazard maps.
• Your weekly drives. Drive the routes to work, the airport, groceries and medical care at the hours you’d actually use them.

My Canyon Lake page covers the lake side in more detail.

Step 2: Use video tours to cut the list, and a trip to decide

Video tours are good for layout, condition, finishes, and deciding whether a house deserves your airfare. Ask for an unedited walk-through that includes the road in, the driveway and the view from the main living area.

Video can’t tell you how steep a driveway feels, how loud a road is, or whether your phone has signal in the back bedroom.

When you plan a scouting trip, make it count:

1. Drive between your top towns so you feel the distances yourself.
2. Visit the same areas at different times of day.
3. Check internet options for specific addresses on the FCC National Broadband Map, then confirm with the provider.
4. Tour a few homes in each area at your price point, even ones you won’t buy, to calibrate.
5. Walk the lots you like best. Hill Country land can look very different in person.

Step 3: Get pre-approved before you shop seriously

A pre-approval letter tells sellers a lender is generally willing to lend you up to a certain amount. The CFPB notes that lenders use “prequalification” and “preapproval” differently, that neither is a guaranteed loan offer, and that getting preapproved early can help you catch credit issues in time to fix them.

For a long-distance purchase:

• Tell your lender early if you’re considering acreage, a lake lot, or a home on a well and septic system.
• Get insurance quotes before you’re under contract, not after.
• A National Flood Insurance Program policy generally takes effect 30 days after purchase, unless you buy it while making a mortgage (FloodSmart).

Step 4: After closing, do the Texas paperwork in this order

1. Register your vehicles within 30 days (TxDMV). Go to your county tax assessor-collector’s office with your insurance card, proof of ownership such as your old title, and Form 130-U. Emissions inspections apply only in the counties TxDMV lists, and Comal County isn’t one of them as I write this. TxDMV says the new-resident sales tax fee can be $90 or the difference between your previous state’s sales tax and the Texas sales tax.
2. Get your Texas driver license within 90 days. DPS says you can drive on a valid out-of-state license for up to 90 days after moving, and asks you to register your vehicles in Texas before you apply. That’s why step 1 comes first. You’ll surrender your old license, and with a valid license from another U.S. state you generally skip the knowledge and skills exams.
3. Then apply for your homestead exemption. More on that below.

For the license appointment, DPS lists proof of citizenship or lawful presence, proof of identity, your Social Security number, proof of insurance and Texas vehicle registration, plus two printed residency documents with your name and Texas address, like a deed or a recent utility bill. The usual 30-day residency requirement is waived when you surrender a valid out-of-state license.

Step 5: File for your homestead exemption at the right time

A homestead exemption lowers the taxable value of your primary home. Per the Comptroller, school districts must provide a $140,000 exemption, some owners qualify for an additional $60,000 (the Comptroller’s page lists who), and taxing units can add a local option of up to 20 percent. Comal Appraisal District says Comal County currently offers that 20 percent local option.

Timing is where people get tripped up:

• You must own and live in the home first. Comal Appraisal District says you must own and occupy the home on the date you apply, and you can’t file before you qualify.
• The deadline is generally April 30 of the tax year, and Form 50-114 allows a late application up to two years after the deadline.
• Buying mid-year. If you buy after January 1, you may get the exemption for the rest of that year if the previous owner didn’t have the same exemption. If the seller had a general homestead exemption, Comal Appraisal District says it normally stays in place for that tax year, and you file in your own name for the next one.
• Your license address must match. The application requires a copy of your Texas driver license or state ID, and its address must match the home’s address, with limited exceptions. That’s why the license comes first.

File with the appraisal district in the county where the home sits, not with the Comptroller, and confirm your situation with that district or a tax professional.

Step 6: Set up utilities outside city limits

Outside a city, more of this is on you.

• Electricity. Not every part of Texas has retail electric choice. City-owned utilities and electric co-ops decide for themselves whether to join the competitive market (PUC), so find out who serves your address.
• Water. If the home has a private well, testing is up to you. The Texas Groundwater Protection Committee notes there are no federal or state requirements to monitor private well water quality, and links to accredited labs.
• Septic. In Comal County, a permit is required before building or making non-emergency repairs to a septic system (Comal County). The county’s permit search lets you look up records for a property.
• Propane. Ask whether the home uses a tank on the property or a community system, and who fills it.

If you’re planning a move from out of state

A move like this goes smoother with a written plan and the right order of operations. If you’d like the whole picture in one place, start with my Hill Country Buyer’s Guide.