Your offer was accepted. Congratulations! Now comes everything that happens between "yes" and getting the keys.
Here is what the road to closing typically looks like in Texas, step by step. Your exact dates come from your contract, so treat this as a guide, not a fixed schedule.
Quick answer: In Texas, you deliver earnest money and the option fee within 3 days, inspect and negotiate during the option period, then move through title, appraisal, and final loan approval before a final walkthrough and closing. Your contract sets the exact deadlines.
Step 1: Deliver Earnest Money and the Option Fee (Within 3 Days)
Under the standard Texas resale contract from the Texas Real Estate Commission (TREC), the buyer delivers the earnest money and option fee to the escrow agent, usually the title company, within 3 days after the contract's effective date.
Why it matters: Missing this deadline can put your rights under the contract at risk, so this is the first thing to handle.
Step 2: Inspect During the Option Period
The option period is a set number of days, agreed to in your contract, when you can terminate for any reason. This is when you schedule your home inspection and any specialty inspections.
Why it matters: If the inspection turns up issues, the option period is your window to negotiate repairs, a price reduction, or credits, or to walk away. If you terminate within the option period, the option fee is not refunded, but the earnest money generally is.
Step 3: Title Work Begins
Under the TREC contract, the seller provides a title commitment within 20 days after the title company receives the contract. The title company checks for liens or other issues that could affect ownership.
Why it matters: You will have a chance to review the title commitment and any survey, and to object to issues within the time your contract allows.
Step 4: The Appraisal
If you are financing, your lender orders an appraisal to confirm the home's value supports the loan amount.
Why it matters: If the appraisal comes in low, you may need to renegotiate the price, bring more cash, or use protections in your financing addendum. Your agent and lender can walk you through your options.
Step 5: Final Loan Approval
Your lender completes underwriting, which means reviewing your income, assets, and the property documents. Respond quickly to any requests for paperwork, and avoid taking on new debt until after closing, since approval depends on your credit staying in good standing.
Why it matters: New debt or missing documents can delay or derail final approval.
Step 6: Set Up Insurance and Utilities
Your lender will typically require homeowners insurance before closing. This is also a good time to ask about flood insurance and to choose an electricity provider for move-in day.
Why it matters: A National Flood Insurance Program policy bought in connection with a new mortgage has no waiting period, so closing is a natural time to set one up.
Step 7: Final Walkthrough
Before closing, it is a good idea to visit the home one last time to check its condition and confirm that any negotiated repairs were completed.
Step 8: Closing Day
You sign the final documents at the title company, the funds are transferred, and the home is yours. Ask your title company ahead of time what to bring and how to send any remaining funds safely.
Why it matters: Wire fraud scams target homebuyers. Always confirm wiring instructions by calling your title company at a phone number you already know, not one from an email.
Frequently Asked Questions
What is the option period in Texas? It is a number of days, agreed to in your contract, when you can terminate for any reason by paying an option fee. Most buyers use it for inspections and repair negotiations.
When is earnest money due in Texas? Under the standard TREC resale contract, the earnest money and option fee are due to the escrow agent within 3 days after the effective date.
What happens if the appraisal comes in low? You may be able to renegotiate the price, cover the difference in cash, or use protections in your financing addendum. Talk to your agent and lender right away.
How do I avoid wire fraud at closing? Always confirm wiring instructions by calling your title company at a phone number you already know. Do not use phone numbers or links from an email.
Have Someone Watching Every Deadline
Between the option period, title review, appraisal, and loan approval, there are a lot of dates to track. Ryan Adams and The Adams Group TX keep every deadline on our radar so you can focus on getting ready to move. Call us at (832) 308-7633 or visit us at 5822 Sienna Parkway, Suite 500, Missouri City, TX 77459.
