What Happens at Closing: A Step-by-Step Guide for DFW Buyers
You've had an offer accepted — congratulations. But between "offer accepted" and "keys in hand," there's a real process with real deadlines and real money changing hands at specific points. Here's exactly what happens from a buyer's perspective, step by step — from earnest money to the title company, the appraisal, funding, and finally getting your keys.
1. Earnest Money Goes Into Escrow
Within a few days of your offer being accepted, you'll deposit earnest money — typically 1–2% of the purchase price — into escrow with the title company. This shows the seller you're serious, and it gets credited toward your down payment or closing costs at closing. If you back out of the deal outside the terms of your contract, this is the money at risk.
2. The Option Period (Texas-Specific)
In Texas, you typically negotiate an option period — a short window where you can have the home inspected and back out for any reason, for a small non-refundable option fee paid directly to the seller. This is your real due-diligence window, and it's one of the most important buyer protections in the entire transaction.
What to do during this time:
- Schedule your home inspection (and any specialized inspections — foundation, pool, septic, etc.)
- Review the inspection report and decide whether to request repairs, a credit, or move forward as-is
- Order a survey if you don't already have a recent one
If something major turns up that the seller won't address, this is your window to walk away with your earnest money intact.
3. Loan Application and Processing (If Financing)
While your option period is running, your lender is working through underwriting — verifying your income, assets, employment, and credit. You'll be asked for documentation (pay stubs, bank statements, tax returns) multiple times throughout this process; that's normal, not a red flag.
Avoid these common mistakes during this stage:
- Don't open new credit accounts or make large purchases
- Don't change jobs if you can avoid it
- Don't make large, unexplained deposits into your bank accounts without documentation
Any of these can delay or jeopardize your loan approval at the worst possible time.
4. Title Search and Insurance
The title company opens a file and begins a title search on the property — checking for:
- Liens (unpaid taxes, contractor liens, old mortgages that were never released)
- Judgments against the seller
- Easements or boundary issues
- Anything else that could cloud who actually owns the property free and clear
If something turns up, it has to get resolved before closing. In Texas, sellers customarily pay for your owner's title policy, which protects you against title problems that surface after closing.
5. The Appraisal
Your lender orders an appraisal to confirm the home is worth at least the purchase price. If it appraises at or above the contract price, you move forward as planned. If it comes in low, you have a few options: renegotiate the price with the seller, bring additional cash to cover the gap, or in some cases, exit the contract if your contract includes an appraisal contingency.
6. Homeowners Insurance
Before your loan can close, your lender will require proof of homeowners insurance. Shop this earlier rather than later — insurance costs in parts of Texas have risen significantly in recent years, and you don't want a pricing surprise the week of closing.
7. Clear to Close
Once underwriting has verified everything, your lender issues a "clear to close." At this point, your loan terms are locked in and finalized.
8. The Closing Disclosure
At least three business days before closing, you'll receive a Closing Disclosure (CD) from your lender. It spells out:
- Final loan terms and interest rate
- Closing costs, broken down line by line
- Cash needed to close
This is the moment to compare it against your original Loan Estimate and flag anything that looks off. Sellers get a similar settlement statement from the title company showing their payoff and net proceeds.
9. The Final Walkthrough
Usually 24–48 hours before closing, you'll do a final walkthrough of the home. This isn't a second inspection — it's confirmation that:
- The home is in the same condition as when you last saw it
- Any repairs the seller agreed to were actually completed
- Nothing that was supposed to convey (fixtures, appliances) was removed
If something's wrong, this is the time to flag it — before you're at the closing table with money already moving.
10. Closing Day: Signing
Buyer and seller often sign separately, sometimes even on different days, especially with remote or e-closings. You'll sign:
- The deed (transferring ownership)
- The note and deed of trust (your loan documents)
- The closing disclosure/settlement statement
- A pile of disclosures, affidavits, and title documents
Bring a valid photo ID, and bring your remaining cash to close as a cashier's check or confirm your wire transfer in advance — personal checks generally aren't accepted at closing.
11. Funding
Signing isn't the finish line — funding is. This is when your lender actually sends the loan funds and the title company confirms all money has moved correctly — your down payment and closing costs in, the seller's mortgage payoff and net proceeds out, and agent commissions disbursed. In Texas, closing and funding often happen the same day, but not always instantly — sometimes there's a short gap, especially on refinances or complex transactions.
12. Recording
Once everything is funded, the title company sends the deed to the county clerk's office to be officially recorded. This is the legal moment ownership transfers to you — not the moment you sign. Until it's recorded, the sale isn't fully final, even if everyone has signed.
13. Keys
Once funding and recording are confirmed, keys are released — per the contract, this is typically at closing or at a scheduled time after. This part is usually coordinated by your agent, not the title company.
A Few Texas-Specific Notes for Buyers
- Texas is a table-funded, escrow-closing state — title companies run the closing, not attorneys, which is different from some other states.
- Property taxes are prorated at closing and can be a bigger number than out-of-state buyers expect, since Texas has no state income tax and leans harder on property tax.
- Wire fraud targeting closings is real and increasing. Always verify wiring instructions by calling the title company directly using a phone number you look up independently, never one provided only by email.
- E-closings and remote online notarization are increasingly available across North Texas, which can help if your schedule is tight or you're relocating.
- Survey requirements can affect your timeline — if there's no existing survey, one may need to be ordered.
Bottom Line
Closing feels like a single event, but it's really the final step in weeks of coordinated work — your lender, the title company, and your agent all working through deadlines to get you to the closing table. Understanding the sequence helps you catch problems early and walk into closing day with confidence instead of anxiety.
Getting Ready to Make an Offer?
Have questions about where you are in the process, or want to know what to expect at your specific closing? Reach out — I'm happy to walk you through what's next.