What Happens Between Contract and Closing in Texas?
Quick Answer: After your offer is accepted in Texas, you deliver earnest deposit and the option fee, inspect the home during the option period, then the lender orders an appraisal and underwriting reviews your file. Once you're clear to close, you do a final walkthrough, sign, and get the keys. For my files, that usually takes about [#] days.
What happens in the first few days?
Your earnest deposit and option fee go to the title company, as the contract requires. On the loan side, your application gets its final documents.
What is the option period?
It's a short window in the Texas contract when you can inspect the home and back out for any reason, keeping your earnest deposit. The option fee usually goes to the seller. This is when you negotiate repairs.
What does the appraisal do?
The lender hires an appraiser to confirm the home is worth the price. If it comes in low, you have choices, like asking the seller to adjust or bringing more funds.
What happens in underwriting?
The underwriter reviews your income, assets, credit, and the property. They may ask for a few more documents. This is not the time to change jobs, open new credit, or make big deposits without asking your loan officer first.
What is "clear to close"?
It means the lender is ready to fund. You'll get your Closing Disclosure to review at least three business days before closing.
What happens at the end?
A final walkthrough to check the home's condition, then you sign at the title company and get the keys.
Why does one desk help here?
Because problems in this stretch usually touch both sides. A repair can affect the appraisal. An appraisal can affect the loan. On one desk, I see both sides the same day.
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Frequently Asked Questions
How long does it take to close on a house in Texas?
It depends on the loan and the contract. For my files, it usually takes about [#] days from contract to closing.
What is the option period in Texas?
It's a short window in the Texas contract when the buyer can inspect the home and back out for any reason, keeping their earnest deposit. The option fee usually goes to the seller.
What should I not do during underwriting?
Don't open new credit, change jobs, or make large deposits without asking your loan officer first. Those can delay or change your approval.
Ai Tran, Realtor and Loan Officer
2020 Realty
Round Rock, TX
512-300-8611
https://www.AiTTran.com
About the author: Ai Tran is a bilingual Realtor and loan officer based in Round Rock, TX, serving Round Rock, Austin, Pflugerville, Leander, and Cedar Park. Through her One Desk Method she handles both the home and the loan, so families get the right house and the right financing from one person they trust. NMLS #2627075.
These services are offered independently. You are not required to use my real estate services to obtain a loan, nor are you required to use my lending services to purchase a home.
Equal Housing Lender. Ai Tran NMLS #2627075, Loan Factory NMLS #320841. Not a commitment to lend. Rates, products, and fees subject to change; subject to underwriting approval; not all applicants qualify. Loans offered in TX and CA only. Disclosures: https://www.loanfactory.com/aitran/disclosure
