First-Time Homebuyer Guide: What to Expect at Your Texas Closing

Step 1: Your offer is accepted

Your Realtor calls. "They accepted your offer." Then comes a blur of forms, signatures, and wire instructions. Here is what is actually happening.

The moment you and the seller have a fully signed contract, a countdown starts. Most Texas residential contracts give you three critical periods:

• The option period — usually 5 to 10 days, during which you can walk away for any reason and keep (most of) your earnest money. This is when you do your inspection.
• The financing contingency — 21 to 30 days to get final loan approval.
• The closing date — typically 30 to 45 days from contract.

Step 2: Earnest money and escrow

Within a few days of contract, you will deposit your earnest money — typically 1% to 2% of the sales price — with the title company. This is your good-faith deposit. The title company holds it in an escrow account until closing, when it gets credited toward your purchase.

If the deal falls apart during your option period, you get it back (minus the option fee). If you default after the option period, you may lose it. If the seller defaults, you get it back.

Step 3: Inspection and option period

Do not skip the inspection. Hire a licensed inspector. Go with them if you can. Read the report. If there are significant issues, you and your Realtor negotiate repairs or a price adjustment with the seller. You can walk away during the option period and keep your earnest money.

Step 4: The title commitment

Within about a week of contract, the title company issues a Title Commitment. This is a 20-to-40-page document showing what the title insurance policy will cover, what it excepts, and what conditions must be met before closing.

Things to look for in the commitment:

• Schedule A: Who owns the property now, legal description, policy amount.
• Schedule B: Exceptions — things not covered by the policy, like easements, mineral rights, and restrictive covenants.
• Schedule C: Requirements — things that must happen before closing, like paying off an existing mortgage or clearing a lien.

Read Schedule B carefully. If you see something concerning — an easement through your yard, a surface waiver for mineral rights, a restriction on improvements — ask your title company or attorney about it before closing.

Step 5: Appraisal and loan approval

Your lender will order an appraisal. If it comes in at or above the sales price, the loan moves forward. If it comes in low, your lender may reduce the loan amount, you may need to bring more cash, or you may renegotiate with the seller.

Meanwhile, your lender is verifying your employment, income, credit, and assets. You may be asked for updated pay stubs, bank statements, or tax returns. The lender is not trying to annoy you — they are responding to investor and regulatory requirements. Respond quickly and you will close on time.

Step 6: The Closing Disclosure (three-day rule)

By federal law, your lender must give you a Closing Disclosure at least three business days before you sign. This document shows every dollar of your closing cost: loan fees, title fees, taxes, insurance, down payment, and your total cash to close.

Review it carefully. Compare it to the Loan Estimate you received at application. Significant differences should be explained. If numbers look wrong, call your loan officer or escrow officer immediately — the three-day window is precisely so you have time to fix mistakes.

Step 7: Wire your cash to close

Read this section carefully. Wire fraud is real and common.

The title company will send you wire instructions to send your down payment and closing costs. You should:

• Verify the wire instructions by calling the title company at a number you establish yourself — not a number from the email. For SentryTitle, that number is (210) 555-1656.
• Have your bank read the wire details back to you and confirm them with the title company by phone before sending.
• Never trust updated wire instructions that arrive by email. Always call to verify any change.

See our detailed wire fraud prevention page for more. This is the biggest financial risk in your entire closing.

Step 8: Closing day

On closing day, you will sign somewhere between 40 and 80 pages of documents. It will take about an hour. The major ones:

• The Deed — the document that transfers ownership to you.
• The Deed of Trust (mortgage) — the document that secures the loan against the property.
• The Promissory Note — your promise to repay the loan.
• The Closing Disclosure — the final version, matching what you reviewed three days earlier.
• Title insurance policies — owner's and loan policies.
• Affidavits and compliance documents — various certifications about the property, your identity, and the transaction.

Ask questions. If you do not understand something, your escrow officer will explain it. At SentryTitle, we can conduct the entire closing in Spanish or English, based on your preference.

Step 9: Funding and recording

After you sign, the lender wires the loan funds. The title company disburses — paying off the seller's old mortgage, paying the seller their proceeds, paying the Realtor commissions, paying property taxes, paying itself. The title company then records the deed with the county clerk.

When recording is confirmed — usually the same day, sometimes the next business day — you legally own the home. Your Realtor will coordinate the key handoff.

Step 10: After closing

A few weeks after closing, you will receive:

• Your original recorded deed from the county clerk.
• Your owner's title insurance policy from the title company — keep this forever.
• A payment coupon or online portal from your mortgage servicer.

That is it. You are a homeowner.

One more thing

The closing is the last stressful moment of the home-buying process — and also the most important for catching mistakes. Your escrow officer is your ally. If something feels wrong, say so. If you are being rushed, slow down. The paperwork matters forever.

Have questions about your closing? Contact SentryTitle or call (210) 555-1656. We explain everything in plain English — or Spanish, if you prefer.