Closing on a Home in Texas: From Final Steps to Getting Your Keys

The contract-to-closing timeline

Every transaction follows the deadlines in its own contract, but most financed purchases move through these steps:

1. Option period and inspectionsCovered in option period, inspections, and appraisals.
2. Loan processing and appraisalYour lender verifies your finances, orders the appraisal, and works toward final approval.
3. Title commitment and surveyThe title company researches ownership and liens. You review the commitment and survey within the contract’s timeframes.
4. Homeowners insuranceChoose a policy and give your lender proof of coverage.
5. Closing DisclosureReceived at least three business days before closing on a mortgage loan.
6. Final walkthroughConfirm the home’s condition and any agreed repairs.
7. Signing, funding, and keysSign at the title company, the loan funds, and possession transfers as your contract states.

Title, survey, and HOA documents

In Texas, the title company usually serves as the escrow agent and handles the closing. Under the standard resale contract, the seller provides an owner’s policy of title insurance. Who pays for it is a checkbox in the contract, so it’s negotiated with each sale.

• Title commitment: shows what the title company will insure and any exceptions, such as easements, restrictions, or liens to be paid off at closing. Read it, and ask questions while you still have time to object under the contract.
• Survey: the contract specifies whether an existing survey can be used or a new one is required, and who pays.
• HOA documents: if the home is in a property owners’ association, an HOA addendum usually governs when you receive the subdivision information and what fees apply.

The standard contract’s broker notice advises buyers to have the title commitment reviewed by an attorney of their choice. That’s worth taking seriously if anything in the commitment is unclear.

Your Closing Disclosure: what to check

For most mortgage loans, federal rules require your lender to give you a Closing Disclosure at least three business days before you close. It shows your final loan terms, monthly payment, closing costs, and the cash you’ll need to bring. Compare it line by line with the Loan Estimate you received when you applied:

• Loan amount and interest rate
• Monthly principal and interest
• Any prepayment penalty
• Closing costs and lender credits
• Escrow for taxes and insurance
• Cash to close

If something doesn’t match what you agreed to, ask your lender right away. Some changes can require a new three-day review period.

Closing costs and prorations

Under the standard resale contract, each side has its own expenses. The buyer typically pays loan-related charges (appraisal, origination, and the lender’s title policy), half of the escrow fee, recording fees, and prepaid items such as insurance premiums and escrow deposits. The seller typically pays to release existing liens, prepare the deed, and half of the escrow fee. Some of these can shift through negotiation, such as seller contributions toward your closing costs.

Property tax prorations

Texas property taxes are usually paid once a year, after the year’s bill is issued. At closing, the current year’s taxes, along with HOA dues and similar items, are prorated through the closing date. In practice, the seller usually gives you a credit for their share of the year, and you pay the full bill when it’s due. If the actual taxes end up different from the estimate, the contract provides for the parties to adjust once the statements are available.

Protect your funds from wire fraud

Your title company will tell you which forms of payment it accepts for your cash to close. If something feels off, pause and verify. A short delay is far better than losing your down payment.

The final walkthrough

Shortly before closing, walk through the home with your agent. You’re confirming that it’s in the condition the contract requires and that nothing has changed since you last saw it.

• Agreed repairs are complete, with receipts or documentation
• No new damage since the option period
• Appliances and items in the contract are still there
• HVAC, plumbing, and lights work
• The seller’s belongings are removed, if possession is at closing
• You have keys, garage remotes, and access codes

For your own planning. Checking items doesn’t send anything to Clever Realtors.

The current TREC resale contract also requires the seller to hand over access information for smart devices, such as thermostats, locks, and cameras, and to disconnect their own devices when possession transfers.

Closing day: signing, funding, and possession

On closing day, you’ll sign your loan documents and closing paperwork, usually at the title company. Bring a government-issued photo ID, plus anything else the title company requests. The seller signs a general warranty deed transferring the property to you.

Signing isn’t the finish line. The transaction funds when the lender releases the loan money and the title company disburses it. That can happen the same day as signing or later. Under the standard contract, possession transfers at closing and funding, unless the parties signed a written lease for the seller to stay longer or for you to move in earlier.

Moving in before closing, or letting the seller stay after closing without a written lease, can create legal and insurance problems. The contract specifically warns buyers to talk with their insurance agent before ownership and possession change.

After you close

• Apply for your homestead exemption. If the home is your principal residence, file with your county appraisal district. The Texas Comptroller explains eligibility, and new owners may qualify in the year they buy.
• Keep your closing documents, including your deed, title policy, and Closing Disclosure.
• Change the locks and reset garage and smart-device codes.
• Transfer utilities and set up internet, trash, and other services.
• Watch your mailbox for your first mortgage statement and your tax and insurance escrow details.