What happens between going under contract and closing?
Reviewed August 2026 by Shannon Miles Group
Between going under contract and closing, a typical Texas real estate transaction moves through several stages: the contract becomes effective, earnest money is deposited, you pay the option fee, inspections are completed during the option period, repairs are negotiated, the lender processes your loan and orders an appraisal, the title company conducts a title search and prepares the closing disclosure, and you do a final walk-through. On closing day, you sign the final documents, funds are transferred, and you receive the keys. The timeline and specific steps vary by financing type, property type, and contract terms.
The Texas transaction roadmap.
Once your offer is accepted and both parties have signed the contract, the real work begins. Here is what typically happens during the period between contract execution and closing day. Keep in mind that every transaction is different. Cash transactions move faster than financed ones, and some steps may overlap or happen in a different order.
The contract becomes effective when the last party signs and the seller receives the signed document. Your agent will confirm the effective date. Within a few days, you deposit the earnest money with the title company and pay the option fee directly to the seller. The clock starts ticking on every deadline in the contract.
This is your due diligence window. Schedule and complete the home inspection, any specialty inspections (septic, well, termite, HVAC, foundation, pool), and review the findings with your agent. During the option period, you can terminate for any reason and receive your earnest money back. If the inspection reveals issues, your agent will help you decide whether to negotiate repairs, request a credit, or terminate.
After the inspection, you submit a repair request to the seller. The seller may agree to make repairs, offer a credit at closing, or decline. This is a negotiation. Your agent will guide you on what is reasonable and help you navigate the response. If agreement cannot be reached, you may have the right to terminate depending on the contract terms.
While the inspection is happening, your lender is processing your loan application. They order an appraisal to confirm the property's value matches the purchase price. The appraisal is ordered through an appraisal management company and scheduled separately from the inspection. If the appraisal comes in lower than the contract price, the lender may reduce the loan amount, and you will need to negotiate with the seller or make up the difference.
The title company searches public records to verify the seller owns the property, identifies any liens, easements, or encumbrances, and prepares a title commitment. Depending on the contract, you may also need a survey to confirm property boundaries. The title company will notify you of any title issues that need to be resolved before closing.
You will need to secure homeowners insurance before closing. Your lender will require proof of insurance with specific minimum coverage. The lender may also require additional conditions, such as verifying employment, explaining large deposits, or providing additional documentation. Stay in close contact with your loan officer during this phase.
Three business days before closing, your lender must provide you with the Closing Disclosure (CD). This document lists all the final numbers: the loan amount, interest rate, monthly payment, closing costs, and the amount you need to bring to closing. Review it carefully and compare it to your Loan Estimate. Your agent can help you understand any differences.
Typically 24 to 48 hours before closing, you do a final walk-through of the property. You verify that the home is in the same condition as when you made your offer, that agreed-upon repairs have been completed, and that no new damage has occurred since the inspection. For more detail, see our guide to the final walk-through.
On closing day, you sign the final documents, including the mortgage note and deed of trust. Your lender funds the loan, the title company records the deed with the county, and the transaction is complete. Once recording is confirmed and funds are released, you receive the keys. How possession is handled depends on the contract terms. Some contracts grant possession at closing, others on a specific date after closing.
Staying on track through closing.
- Track every deadline. Your contract has multiple dates: earnest money, option period, inspection response, financing commitment, appraisal, and closing. Missing any single deadline can put the transaction at risk.
- Stay responsive to your lender. Loan processing requires documentation at every stage. Return calls and emails promptly. A delay in providing documents can push back your closing date.
- Do not make major financial changes. Do not open new credit accounts, change jobs, or make large deposits or withdrawals while your loan is being processed. Your lender will verify your financial picture right up to closing.
- Review the Closing Disclosure immediately. When you receive the CD, compare it to your Loan Estimate. If anything looks wrong or unexpected, ask your agent and lender immediately.
- Cash transactions are faster. If you are paying cash, the process moves faster because there is no lender. You still go through inspection, title, and walk-through, but there is no appraisal or lender processing timeline.
We guide buyers through every stage of the transaction.
Call us or stop by our office at 2322 Lamar Ave. in Paris. We will be with you every step of the way.