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There is a really easy way to add a watercolour effect to type, using the Watercolor brushes in Photoshop.
To start, head over to the Brush tool (B), then right-click to bring up the Brush Picker. Click on the little arrow on the top left-hand side and a drop-down menu will appear. Select Natural Brushes 2>Watercolor 1 brush, then head over to the Brush panel and make sure Shape Dynamic, Scattering, Transfer, Wet Edges and Smoothing are all ticked.
Make your brush size as big as you desire and simply click onto the canvas.