You signed the last document, and the keys are finally yours. Congratulations! Before the boxes take over, there are a few things every new Texas homeowner should take care of.
Here is what to do after closing, step by step. Some take five minutes. One of them can save you money on your property taxes for years.
Quick answer: After closing, save your closing documents, mark your first mortgage payment date, watch for any servicer transfer letter, file your free homestead exemption with your county appraisal district, sign up for your county's free property fraud alerts, and change your locks.
Step 1: Save Your Closing Documents
Keep your Closing Disclosure and other closing papers somewhere safe, both digital and paper. These documents list your loan terms, and your first payment date is typically in a First Payment Letter you receive at closing.
Why it matters: They are your record of the loan terms and costs you agreed to, so keep them where you can find them later.
Step 2: Mark Your First Mortgage Payment
Your first mortgage payment is usually not due right away. It is typically due on the first day of the month after one full month in the home. For example, if you close on June 15, your first full month is July, so your first payment would usually be due August 1.
Why it matters: Your exact date is in your closing documents. Put it on your calendar or set up autopay so the first one does not slip by.
Step 3: Watch for a Servicer Transfer Letter
The company you send payments to, called your mortgage servicer, may transfer your loan's servicing to another company. According to the CFPB, your old servicer generally must notify you at least 15 days before the transfer, and your new servicer generally must notify you within 15 days after.
Why it matters: If you set up automatic payments through your bank, you will need to update them. For 60 days after a transfer, your new servicer cannot charge a late fee if you sent an on-time payment to the old servicer.
Step 4: File Your Homestead Exemption
This is the big one. Your homestead exemption lowers the taxable value of your home for school district taxes by $140,000. The application is Texas Comptroller Form 50-114, and you file it with the appraisal district in the county where your home is located.
You do not always have to wait until next year. You may qualify for a prorated exemption for the rest of the year you buy, as long as the previous owner did not already receive the exemption that year. If you miss a deadline, Texas generally allows you to file up to two years after the taxes for that year become delinquent.
Why it matters: Filing is free, and once your exemption is in place, your home's taxable appraised value generally cannot rise more than 10% per year. (More on this in 7 Home Buying Myths, Plus One That's Only True in Texas.)
Step 5: Ignore Paid Offers to File for You
After you buy, you may get letters from companies offering to file your homestead exemption for a fee.
Why it matters: The application is free to submit yourself through your county appraisal district.
Step 6: Sign Up for Free Property Fraud Alerts
The Fort Bend County Clerk offers Property Fraud Alert, a free service that notifies you when a document with your name is recorded in the county's Official Public Records. Many other Texas counties offer similar free alerts, so check your county clerk's website if you bought elsewhere.
Why it matters: If someone records a fraudulent document on your property, an alert lets you respond quickly. The Fort Bend County Clerk recommends consulting an attorney if you have evidence your property has been stolen.
Step 7: Finish Setting Up Insurance and Utilities
If you have not already, compare electricity plans on Power to Choose, the Public Utility Commission of Texas comparison site. Ask your insurance agent about flood insurance too, since standard homeowners insurance typically does not cover flood damage.
Why it matters: An NFIP flood policy bought later, outside of a mortgage closing, generally takes 30 days to take effect.
Step 8: Change the Locks
You have no way of knowing how many copies of the old keys exist. Rekeying or replacing the locks, and resetting garage and gate codes, gives you a fresh start.
Step 9: Get to Know Your Escrow Account
If your loan has an escrow account, part of each payment goes toward property taxes and homeowners insurance. Your servicer reviews the account each year and sends an annual escrow analysis statement, which can show a surplus or a shortage.
Why it matters: If your taxes or insurance go up, your monthly payment can change after the annual review.
Frequently Asked Questions
Can I file for a homestead exemption the same year I buy? You may qualify for a prorated exemption for the rest of the year you buy, as long as the previous owner did not already receive the exemption that year. File Form 50-114 with your county appraisal district.
Does it cost money to file a homestead exemption in Texas? No. Filing is free. Some companies send letters offering to file for a fee, but you can file yourself.
When is my first mortgage payment due? Typically on the first day of the month after one full month in the home. Your exact date is in your closing documents.
What is Property Fraud Alert in Fort Bend County? It is a free service from the Fort Bend County Clerk that notifies you when a document with your name is recorded in the county's Official Public Records.
We Are Still Here After Closing
Getting the keys is not the end of the relationship. Ryan Adams and The Adams Group TX are happy to answer questions long after closing day, from homestead forms to recommendations for local services. Call us at (832) 308-7633 or visit us at 5822 Sienna Parkway, Suite 500, Missouri City, TX 77459.
