I need to put these words into another image for a wallpaper with the exact same effect/look. I tried selecting it but the quality is low and the texts look bad.
That just looks like some type with a texture overlay.
Write some text...
Find an appropriate texture...
Clip the texture to the type. You can either do that through the menu (Layer → Create Clipping Mask), or just alt+click between the texture and type layers...
You can use a layer style on the texture itself to adjust the colors (or use any method you'd otherwise use to recolor an image)...
 Watercolor texture from Freepik
You would need to have two fonts, set both fonts up in the way shown above then select each of the thicker text layers.
After doing so you should get your either same background or different coloured backgrounds.
Now, select the text layer go onto the background layer. Press Ctrl+Shift+I, this should select the background leaving you with text with a background fill. If you cannot find a background, or dont want to follow this you dont have too as you can always synthetically create this effect, but I personally wouldnt as my method is much easier and takes much less time.
But if you wanted to create that EXACT effect I would add transparent smoke effect (or create your own) over the top within the same effect.
Just to warn you if you are following my method and are going to use the composition commercially then you will have to check which images you use as some of these images could be copyrighted.
One way to achieve this kind of effect is by using Layer Style. This might not give you the same the colours but it can give similar kind of effect.
You can download any Watercolor Layer Style. Once downloaded double click on it and the style will be added in the Layer Style Palette.
Open a new document and write your text. Select the text layer you want to apply the effect on. And then from the downloaded styles select any Layer Style. The style will be applied to the text.
Download some brushes. For example http://qbrushes.net/downloads/images/set-preview/water-color-photoshop-brushes-view.jpg
Open a New Document. Write your text. Select the color that is used in the images by using eye dropper tool.
Create a new layer above the text layer. Select the text by clicking on thumbnail.
Keeping the text selected, now select the new layer created above the text layer.
This is another way to achieve this goal.
- Make your Gradient, first by Gradient tool.
- Selection your text by Ctrl+Click on text layer
- Create a New Layer and Apply the Gradient Color that you made a little bit ago.
- Now delete the selections, Because, we don't need here any Gradient Color
- Final Result