From Contract to Closing: A Homebuyer's Guide

Finding a home you love is exciting. After touring properties, reviewing your options, and negotiating with the seller, hearing that your offer has been accepted can feel like the biggest milestone in the entire homebuying process.

But what happens next?

For many buyers, especially those purchasing their first home, the period between an accepted offer and closing day can feel overwhelming. There are deadlines to meet, inspections to schedule, financing requirements to complete, and important documents to review.

The good news is that understanding the process ahead of time can make the experience much easier to navigate.

At Tejas Real Estate, we help buyers throughout Gatesville, Coryell County, and surrounding communities understand each stage of their real estate transaction.

Whether you're purchasing a traditional residential home, a home with acreage, or a rural property, here's what you should know about the journey from contract to closing in Texas.

1. An Accepted Offer Becomes an Executed Contract

The first important distinction is understanding when an offer becomes a binding contract.

In Texas, an offer generally becomes an executed contract when the parties have agreed to the required terms, signed the contract, and acceptance has been properly communicated.

The effective date is particularly important because many contractual deadlines are calculated from it.

These deadlines may involve:

  • Earnest money delivery

  • Option fee delivery

  • Inspection and option periods

  • Financing requirements

  • Title commitments

  • Survey matters

  • Closing

Your REALTOR® can help you identify the deadlines in your specific contract and understand what needs to happen next.

Important: Every transaction is different, and the terms of your executed contract control the applicable deadlines and obligations.

2. Deliver Earnest Money and the Option Fee

Once the contract is executed, one of the first steps is arranging the required payments.

What Is Earnest Money?

Earnest money is a deposit that demonstrates the buyer's commitment to the transaction.

In many Texas residential transactions, earnest money is delivered to the title company or another designated escrow agent.

The funds are generally held in escrow and may be credited toward the buyer's amount due at closing, depending on the transaction.

However, whether earnest money is refundable depends on the contract terms and the circumstances.

What Is an Option Fee?

In transactions using the applicable Texas residential resale contract, an option fee may provide the buyer with an unrestricted right to terminate during a negotiated option period, provided the buyer complies with the contract.

The option period gives buyers an opportunity to investigate the property before deciding whether to proceed.

For the commonly used TREC One to Four Family Residential Contract (Resale), earnest money and the option fee are generally due to the escrow agent within three days after the effective date, subject to the contract's provisions for weekends and legal holidays.

The exact requirements should always be checked against the signed contract.

At Tejas Real Estate, we help buyers stay organized and understand these early transaction milestones.

3. Schedule Your Home Inspection

One of the most important steps after entering into a contract is arranging a professional home inspection.

A home inspection can provide valuable information about the property's condition.

Depending on the property and the scope of the inspection, a qualified inspector may evaluate:

  • Foundation and structural components

  • Roofing

  • Electrical systems

  • Plumbing

  • Heating and cooling systems

  • Appliances

  • Attic and insulation

  • Doors and windows

  • Other accessible components

A home inspection is not a guarantee that every issue will be discovered.

It is a professional evaluation designed to help buyers better understand the property's visible and accessible condition.

For buyers purchasing an older home, an inspection may be particularly useful in identifying maintenance concerns or components that need additional evaluation.

4. Review the Inspection Report Carefully

After the inspection, the inspector will typically provide a written report.

It's normal for inspection reports to identify items that require maintenance, repair, or further evaluation.

Not every item represents a major concern.

Some findings may involve routine maintenance, while others could involve significant safety, structural, or mechanical issues.

Buyers should review the report carefully and ask the inspector questions about anything they don't understand.

Depending on the findings, additional evaluations by licensed contractors or other qualified professionals may be appropriate.

Your REALTOR® can help you understand the contractual options available, but the inspector and relevant specialists are the appropriate professionals to assess technical conditions.

5. Decide Whether to Request Repairs or Negotiate

If an inspection identifies concerns, buyers may wish to discuss potential repairs or other negotiated changes with the seller.

Depending on the circumstances and contract, possible negotiations may involve:

  • Seller-completed repairs

  • A negotiated price adjustment

  • Permitted seller contributions

  • Other mutually agreed terms

However, sellers are not automatically required to complete every repair requested by a buyer.

Any agreement to change the contract should be documented appropriately and signed by the parties.

If the buyer has an unrestricted termination option, exercising that right must comply with the contract's timing and notice requirements.

At Tejas Real Estate, we help buyers evaluate the available options and communicate effectively during negotiations.

6. Complete Your Mortgage Application and Financing Requirements

If you're financing the purchase, your lender will have an important role throughout the transaction.

Even if you received a preapproval before making an offer, additional underwriting and documentation are generally required.

Your lender may request:

  • Updated income documentation

  • Bank statements

  • Employment verification

  • Identification

  • Information about existing debts

  • Documentation of funds needed for closing

  • Other financial records

Responding promptly to lender requests can help keep the process moving.

Buyers should also avoid making major financial changes without consulting their lender.

For example, taking on new debt, changing employment, or making large undocumented deposits may affect underwriting.

Tejas Real Estate works with multiple trusted lenders who can help qualified buyers explore financing options and navigate the mortgage process.

7. Understand the Appraisal Process

When purchasing a home with mortgage financing, the lender will often require an appraisal.

The appraisal is intended to help the lender assess the property's value for the loan.

The appraiser may consider factors such as:

  • Comparable sales

  • Location

  • Property characteristics

  • Condition

  • Square footage

  • Lot size

  • Relevant market data

The appraisal is different from a home inspection.

An inspection evaluates property condition within the inspector's scope, while an appraisal primarily addresses valuation for lending purposes.

If the appraised value is lower than the contract price, the parties may need to evaluate their options based on the contract and financing terms.

Those options can vary, so buyers should review the situation with their REALTOR® and lender.

8. The Title Company Begins Its Work

While inspections and financing are underway, the title company is generally working on the transaction as well.

Title work may involve reviewing public records and identifying matters affecting ownership or the transfer of title.

These can include:

  • Existing liens

  • Recorded easements

  • Ownership records

  • Certain restrictions

  • Other recorded matters

The title company also coordinates various aspects of the closing process.

Buyers should review the title commitment and related documents within the applicable contractual deadlines.

If questions arise about legal ownership, title exceptions, or the legal effect of recorded documents, an appropriate title professional or attorney can provide guidance.

9. Review the Survey

A survey can be an important part of a Texas real estate transaction.

Depending on the property, a survey may identify:

  • Property boundaries

  • Improvements

  • Easements

  • Encroachments

  • Other surveyed features

Some transactions may allow the parties to use an existing survey if it satisfies the applicable contractual and title requirements.

In other cases, a new survey may be necessary.

The contract generally addresses who is responsible for obtaining and paying for a required survey under different circumstances.

Buyers should not assume that fences, driveways, or visible property features always align with legal boundaries.

For acreage and rural properties, accurate survey information can be particularly important.

10. Buying Acreage? Additional Due Diligence May Be Necessary

Purchasing a home with acreage involves considerations beyond those of a typical residential property.

Buyers may need to investigate:

  • Legal access

  • Road frontage

  • Easements

  • Deed restrictions

  • Fencing

  • Water sources

  • Wells

  • Septic systems

  • Utility availability

  • Floodplain information

  • Agricultural valuations

  • Existing outbuildings

  • Intended property use

For example, a buyer hoping to keep livestock should investigate whether the property is suitable for that purpose and whether applicable restrictions or requirements affect the intended use.

Similarly, buyers planning to build additional structures should verify feasibility rather than assuming improvements will be permitted.

At Tejas Real Estate, we understand that purchasing rural property often requires additional research and coordination with qualified professionals.

11. Review Seller Disclosures and Other Property Information

Depending on the transaction and applicable Texas law, sellers may be required to provide a Seller's Disclosure Notice.

This document provides information about the seller's knowledge of certain property conditions and features.

However, a seller's disclosure is not a substitute for a professional inspection.

Buyers should review disclosures carefully and ask questions when clarification is needed.

Some transactions may be exempt from particular disclosure requirements, so buyers should not assume every sale involves the same documents.

Your REALTOR® can help explain which documents are involved in your transaction and when they should be reviewed.

12. Prepare for Homeowners Insurance

Buyers obtaining mortgage financing will generally need to arrange appropriate homeowners insurance before closing.

Insurance availability and cost can vary depending on the property and insurer.

Factors may include:

  • Property location

  • Construction characteristics

  • Roof condition

  • Coverage limits

  • Deductibles

  • Claims history

  • Other underwriting considerations

For rural properties, buyers may also need to discuss coverage for detached structures, barns, workshops, or other improvements.

Flood insurance may require separate consideration because standard homeowners insurance generally does not cover flood damage.

Obtaining insurance quotes early can help buyers avoid unexpected costs or delays.

13. Understand Your Closing Costs

In addition to the down payment, buyers should plan for closing costs.

Depending on the transaction and financing arrangement, these may include:

  • Loan-related fees

  • Appraisal fees

  • Title-related charges

  • Recording fees

  • Prepaid insurance

  • Escrow funding

  • Other settlement expenses

The specific amount varies based on the loan, property, contract, and other factors.

Your lender will provide required loan disclosures, including a Closing Disclosure for most covered mortgage transactions.

Reviewing these documents carefully can help you understand the final costs before closing.

14. What Is a Closing Disclosure?

For most consumer mortgage loans subject to the federal Closing Disclosure requirement, buyers must receive the disclosure at least three business days before consummation.

This document provides important details about the mortgage loan and closing costs.

Buyers should review:

  • Loan amount

  • Interest rate

  • Monthly payment

  • Closing costs

  • Prepaid expenses

  • Estimated cash to close

  • Other loan terms

If anything appears incorrect or unclear, contact your lender promptly.

Certain changes may require a revised disclosure or affect the timing of closing.

15. Schedule Your Final Walkthrough

Before closing, buyers commonly have an opportunity to conduct a final walkthrough, subject to the contract and arrangements with the parties.

The purpose is generally to observe the property's condition before completing the purchase.

During the walkthrough, buyers may check whether:

  • The property remains in the expected condition

  • Agreed repairs have been completed

  • Included fixtures or appliances remain

  • No unexpected damage is apparent

  • Contractual property-condition obligations appear to have been met

A final walkthrough is not a substitute for a professional inspection.

If an issue is discovered, notify your REALTOR® promptly so the parties can address it before closing when possible.

16. Closing Day: What Happens?

Closing day is the milestone buyers have been working toward.

Depending on the transaction, buyers may sign documents involving:

  • Mortgage financing

  • The promissory note

  • The deed of trust

  • Settlement information

  • Other required closing documents

The seller generally signs the documents required to transfer the property.

The title company or closing professional coordinates the applicable closing procedures.

However, signing documents does not always mean the transaction has fully funded or that possession is immediately available.

The timing of funding and possession depends on the transaction and contract terms.

Your REALTOR® and closing professional can explain what to expect.

17. Protect Yourself From Wire Fraud

Real estate transactions can involve substantial funds, making buyers potential targets for fraud.

One particularly important concern is fraudulent wiring instructions.

Criminals may impersonate title companies, real estate professionals, or other parties and attempt to redirect funds.

Before sending money:

  • Independently verify wiring instructions

  • Call the title company using a trusted, previously confirmed phone number

  • Be suspicious of unexpected changes

  • Do not rely solely on an email requesting new payment details

If you receive suspicious instructions, contact the title company immediately.

Taking these precautions can help protect your funds during the transaction.

18. When Do You Receive the Keys?

One of the most exciting moments is finally receiving access to your new home.

However, buyers should understand that possession is governed by the contract.

In many transactions, possession is delivered upon closing and funding, but other arrangements may be negotiated.

For example, the seller may have a temporary residential leaseback or another agreed possession arrangement.

Your REALTOR® can help you understand the possession terms before closing so you can plan your move accordingly.

19. What Happens After Closing?

Once the transaction is completed and possession is delivered, your responsibilities as a homeowner begin.

Consider taking care of the following:

  • Transfer or establish utilities

  • Update your mailing address

  • Review your insurance coverage

  • Change applicable locks or access codes

  • Organize closing documents

  • Set up a maintenance schedule

  • Review property tax information

  • Investigate eligibility for applicable homestead exemptions

If you purchased acreage, you may also want to establish a maintenance plan for fencing, roads, water systems, and other improvements.

Homeownership involves ongoing responsibilities, and planning ahead can make the transition smoother.

20. Why Working With a Local REALTOR® Matters

From contract execution to closing, a real estate transaction involves multiple parties and deadlines.

Your REALTOR® helps coordinate the real estate aspects of the process and provides guidance throughout the transaction.

At Tejas Real Estate, we work with buyers throughout Gatesville, Coryell County, and surrounding communities, assisting with:

  • Residential home purchases

  • Homes with acreage

  • Vacant land

  • Farm and ranch properties

  • Recreational real estate

  • Investment properties

We also maintain relationships with lenders, inspectors, surveyors, contractors, title companies, and other professionals involved in real estate transactions.

Our goal is to help buyers understand the process, stay informed, and make decisions that align with their needs.

Your Homebuying Journey Doesn't End When Your Offer Is Accepted

Getting an offer accepted is an exciting accomplishment, but it's only one step in the purchasing process.

The weeks that follow involve inspections, financing, title work, document review, and preparation for closing.

Understanding these steps can help buyers feel more confident and better prepared.

Whether you're purchasing your first home, moving into a larger residence, or buying acreage in Central Texas, having knowledgeable professionals involved can make the process easier to navigate.

Buy With Confidence Through Tejas Real Estate

If you're considering buying a home, land, acreage, or ranch property, Tejas Real Estate is here to help you from your initial property search through closing.

We proudly serve Gatesville, Coryell County, and surrounding communities, offering local knowledge and personalized real estate guidance.

Visit www.tejasrealestate.com to explore available properties or contact our team to begin your homebuying journey.

From your first showing to your closing day, Tejas Real Estate is ready to help you take the next step.

Frequently Asked Questions

How long does it take to close on a home in Texas?

The timeline varies depending on financing, inspections, title matters, contract terms, and other circumstances. Many financed residential purchases are scheduled for closing within approximately 30 to 45 days, but shorter or longer timelines are possible.

What happens immediately after my offer is accepted?

Once the contract is fully executed, buyers generally need to address earnest money, option fees if applicable, inspections, financing, and other contract deadlines.

Is a home inspection required in Texas?

A home inspection is not universally required for every purchase, but buyers are strongly encouraged to consider appropriate inspections and professional evaluations before proceeding.

Can I cancel a contract after an inspection?

Your termination rights depend on the executed contract, applicable deadlines, and circumstances. For example, a properly negotiated and timely exercised unrestricted termination option may allow a buyer to terminate during the option period.

What happens if the appraisal comes in below the purchase price?

The available options depend on the financing and contract terms. Buyers should review the situation with their lender and REALTOR® before deciding how to proceed.

Can Tejas Real Estate help me purchase acreage or ranch property?

Yes. Tejas Real Estate assists buyers with residential homes, land, acreage, farm and ranch properties, and recreational real estate throughout Gatesville, Coryell County, and surrounding communities.

When do buyers receive the keys?

Possession depends on the contract. Many transactions provide possession upon closing and funding, while others involve negotiated arrangements.

Disclaimer: This article provides general real estate information and does not constitute legal, tax, or lending advice. Contract requirements, deadlines, and transaction procedures vary. Buyers should review their executed agreements and consult appropriate licensed professionals when necessary.