Texas Home Buyer Checklist: From Pre-Approval to Closing

Phase 1: Before You Shop

1. Check your credit and budget. Know your score and what monthly payment you're comfortable with, including taxes, insurance and any HOA dues. See how much house you can afford.
2. Get pre-approved, not just pre-qualified. A pre-approval means a lender has reviewed your income, assets and credit. Sellers expect one with every financed offer. Compare loan types before you pick.
3. Set aside cash for more than the down payment. You'll need earnest money, the option fee, inspections, an appraisal and closing costs.
4. Pick an agent and sign a buyer representation agreement. Your agent will also give you TREC's Information About Brokerage Services form, which explains how agents work for you.
5. Estimate property taxes for each area. Rates vary a lot by school district and special district. See Fort Worth property taxes.

Phase 2: Making an Offer

1. Read the Seller's Disclosure Notice before you offer if the seller has one. It covers known defects, past repairs, flooding and more.
2. Ask about HOA, MUD and PID costs. These add to your monthly cost and show up in the contract's notices.
3. Choose your terms with your agent: price, earnest money, option fee and number of option days, closing date, who pays for the title policy and survey, and any seller contribution to your costs.
4. Decide on financing and appraisal terms. The Third Party Financing Addendum covers your loan. TREC also has an optional addendum about terminating if the lender's appraisal comes in low. Read up on appraisal gaps.
5. Sign and wait for final acceptance. The Effective Date is the date the contract is fully signed and accepted. Every deadline counts from it.

Phase 3: The First 3 Days and the Option Period

1. Deliver earnest money and the option fee within 3 days after the Effective Date to the escrow agent (usually the title company) named in the contract. They can be paid separately or in one payment. If the third day lands on a weekend or legal holiday, it moves to the next business day.
2. Schedule inspections right away. The contract lets you use TREC-licensed inspectors. Hydrostatic (plumbing pressure) testing needs the seller's written OK. On older homes, add a sewer scope and a foundation check; see foundation issues in Texas.
3. Get insurance quotes now. Roof age, claims history and flood zone can change the price or availability. See DFW home insurance costs.
4. Negotiate repairs or a credit after the inspection, and put any agreement in a written amendment signed by both sides.
5. Decide before 5:00 p.m. on the last option day. You can terminate for any reason by written notice. You get your earnest money back; the seller keeps the option fee. More on the Texas option period.

Phase 4: Appraisal, Loan and Title

1. Lock your rate when you and your lender agree it's time, and send any documents the lender asks for quickly.
2. Watch for the appraisal. If it comes in below the price, your options depend on your financing addendum and any appraisal addendum you signed. You may renegotiate, cover the gap in cash or, if your contract allows it, terminate.
3. Review the title commitment. The seller must furnish it within 20 days after the title company receives the contract. It lists liens, easements and restrictions that will be exceptions to your title policy.
4. Check the survey. The seller may provide an existing survey plus a T-47 Affidavit or T-47.1 Declaration (Texas Department of Insurance forms) saying nothing has changed. If the title company or lender won't accept it, a new survey is ordered.
5. Object in writing on time. The contract gives you a set number of days after you receive the commitment, exception documents and survey to object to title or survey problems. Miss it and you waive most objections.
6. Review HOA documents. If the home is in a mandatory HOA, the HOA addendum covers the resale certificate and rules. If the seller delivers them after the contract is signed, you can terminate within 3 days after you receive them (or before closing, whichever comes first).
7. Don't change your finances. No new credit cards, car loans or job changes without talking to your lender first.

Phase 5: Closing Week

1. Review your Closing Disclosure. Your lender must give it to you at least three business days before closing. Compare it with your Loan Estimate.
2. Set up utilities in your name for the closing date, and bind homeowners insurance.
3. Wire funds safely. Call the title company at a phone number you already know to confirm wiring instructions. Never trust wiring instructions sent by email alone.
4. Do a final walkthrough. Confirm agreed repairs are done (ask for receipts), the home is in the same condition, and everything that conveys is still there.
5. Bring ID and sign. You'll sign loan documents and the closing papers at the title company.
6. Wait for funding. In Texas, you get possession when the sale closes and funds, meaning the lender's money has been sent, unless you signed a lease for earlier or later possession.

Walk through the day itself in the closing guide for buyers.

Phase 6: After Closing

1. File your homestead exemption with the county appraisal district (the Tarrant Appraisal District for most of Fort Worth). The general deadline is April 30.
2. Change the locks and garage codes, and make sure the seller has removed access to smart devices. The contract requires the seller to hand over codes and disconnect their accounts.
3. Keep your closing file: the settlement statement, deed, title policy, survey and inspection reports.

Typical Timeline From Contract to Close

Frequently Asked Questions