Closing on a House in Texas — Home Buying Step 11

Closing on a House in Texas — The Final Stretch Before Funding (Home Buying Step 11)

This article is part of my practical, experience-based Home Buying Series. Step 11 assumes your option period is either complete or close to complete, inspections are underway or finished, and you’re now pushing toward closing and funding.

• Step 1: Know Your Credit
• Step 2: Build a Sustainable Budget
• Step 3: Choose a Lender Who Explains, Not Sells
• Step 4: Fixing Underwriting Issues (“Not Yet” Is Not “No”)
• Step 5: How to Choose a Realtor Who Works for You
• Step 6: Mortgage Types Explained for Buyers
• Step 7: Start Looking at Houses the Right Way
• Step 8: Narrowing the Field
• Step 9: Make an Offer on a House in Texas
• Step 10: Your Offer Is Accepted — What Happens Next in Texas

At this stage, you can see the finish line. You can taste the victory. But you still have to watch for potholes—because one misstep can destroy the deal inches from the end. By the time you’re closing on a house in Texas, most buyers feel like the hard part is over.

Closing on a House in Texas: What Can Still Kill the Deal?

By the time you’re closing on a house in Texas, most buyers feel like the hard part is over. In reality, several issues can still derail the transaction late:

• an appraisal that comes in low
• a title/survey/access problem that can’t be cured quickly
• last-minute underwriting conditions
• financial changes by the buyer (even “small” ones)
• damage or missing items discovered at the final walk-through

Appraisal: The Lender’s Reality Check

Appraisals report to the lender, not to you. You usually don’t get to “work with” the appraiser the way people imagine, and you often won’t have direct contact at all.

Here’s the practical point: the lender is not going to lend more than the home appraises for. They have to protect themselves in case of default.

If the appraisal comes in low, your options are usually some combination of:

• Renegotiate the price (if the seller will move)
• Bring cash to cover the difference (if it makes financial sense)
• Walk away if the contract allows and the risk no longer makes sense

Where a good REALTOR® can help: your REALTOR® can often provide the appraiser (typically through the lender) a CMA and a list of major upgrades/repairs to help support value. That doesn’t guarantee an outcome, but it can help frame the picture.

A note on “notorious” appraisers: you’ll hear that some appraisers “come in low.” The takeaway is not gossip—it’s that you should understand your backup plan if value doesn’t hit.

Title Work: Quiet Until It Isn’t

Title work is one of the biggest reasons closings get delayed. Even cash deals can stall if title is not ready—especially around holidays, end-of-month volume, or when something unusual appears.

Survey / T-47 / Encroachments

In many transactions, a prior survey plus a T-47 affidavit is acceptable. But you still need to use common sense:

• Does the neighbor’s fence look like it crossed the line?
• Is there a driveway that appears shared with no clear agreement?
• Are there sheds, additions, or carports that look questionable?

If you suspect encroachments or boundary issues, a new survey may be the best money you spend. Generally, if the old survey doesn’t look correct, asking the seller to pay is reasonable.

Heirs, Estates, and “Piece of Paper” Wills

Estate transactions can be legitimate and perfectly fine—but they can also be slow.

Here’s the blunt reality: a will that hasn’t gone through probate is not a will. If the legal authority to sell is unclear, the deal can bog down fast.

Access Problems and Shared Driveways

Shared driveway and access issues can spook lenders for good reason. If legal access or maintenance responsibility is unclear, you don’t want to discover after closing that you’re dependent on someone else’s goodwill to reach your own property.

Do Not Change Your Financial Picture Before Closing and Funding

This is one of the most common “self-inflicted” problems when closing on a house in Texas.

From the time you apply with the lender until you’ve closed and funded:

• no new credit cards
• no new loans (including Buy Now Pay Later, payday loans, title loans)
• no job changes unless you’ve cleared it with the lender
• no unexplained large deposits

If an emergency happens (car totaled, etc.), the right move is: call the lender first. Underwriting can sometimes work with real life—what kills deals is when buyers act first and explain later.

And if you lose your job, it’s worth asking the hard question: do I really want to close on a home I may not be able to afford?

Underwriting Can Re-Verify at the Worst Possible Time

Even late in the process, lenders can re-verify things like employment, deposits, and credit, especially if it has been a lengthy process between loan approval and closing. That’s normal, and it’s one more reason not to “do anything different” financially until you’re closed and funded.

Be ready to provide updated paystubs, bank statements, or explanations for unusual activity. Many lenders also run a final credit refresh or re-check before closing. So if you opened new accounts, took on new debt, or started stacking Buy Now Pay Later plans, assume it will show up.

There is no “hiding it.” The safest strategy is simple: don’t change your financial picture unless you’ve cleared it with the lender first.

Closing Disclosure and the Final Three Days

The last three days before closing are where everything compresses. Even if the deal has been smooth, this is where buyers feel rushed.

Typical “last-mile” tasks include:

• final underwriting approval
• reviewing the Closing Disclosure
• getting final numbers and wiring instructions
• coordinating signing and funding logistics

Bottom line: most “closing stress” is just upstream delays finally showing up on the calendar.

Wire Fraud: Verify Everything, Every Time

Wire fraud is rampant, and scams often look like legitimate emails from a REALTOR®, lender, or title company.

• Never trust wiring instructions delivered by email or text by default.
• Call the title company using a known, saved number to verify instructions.
• Do not call the number inside the email. Do not reply to the email to “confirm.”
• Save your REALTOR®, lender, and title company phone numbers in your contacts early.

I recently closed with a title company I’ve used multiple times, and they still verified wire details. That’s what you want: slow down, verify, then move money.

Insurance and Utilities: Boring, Deal-Critical, and Easier Than They Used to Be

Two practical items routinely create last-minute chaos if buyers don’t plan ahead:

Homeowners insurance:
Your lender requires proof of coverage before closing. This is non-negotiable. Get quotes early so you’re not trying to bind a policy under deadline pressure. You must have coverage in place before funding, even though possession comes after closing and funding.

Utilities:
You also need a plan to start or transfer utilities so you don’t take possession with power, water, gas, or internet shut off — especially if the home has been vacant.

This is where having help matters.

The brokerage I work for is part of the Better Homes and Gardens Real Estate franchise, which offers a program called BHGRE Moves. One component of that program is a concierge service that helps buyers coordinate utility setup with a single phone call.

Rather than calling multiple providers yourself, a trained consultant can help coordinate:

• electricity

• natural gas

• water

• internet

• phone

• home security

The goal isn’t to sell you services — it’s to reduce friction during a phase where timing matters and mental bandwidth is limited.

Participation is typically free, and you are not required to use any specific provider. You can also opt out entirely if you prefer to manage utilities yourself. Other brokerages and franchises offer similar concierge-style programs.

The takeaway isn’t the brand name. It’s this: don’t leave utilities and insurance until the last minute. Whether you use a concierge service or do it yourself, having these items lined up early removes unnecessary stress right before closing.

Final Walk-Through: You’re Verifying Condition and “What Stays”

The final walk-through should be done as close to closing as possible—ideally immediately before closing.

You’re looking for a few simple things:

• the home is in the same condition you agreed to buy
• repairs (if negotiated) appear completed
• fixtures and included items are still there
• no new damage, vandalism, or theft has occurred

Most buyers never see anything dramatic—but it does happen. That’s why sellers maintain insurance up until closing, and your insurance should begin when you buy (before you take possession).

Repairs: Licensing, Proof, and Why This Matters More Than You Think

If you negotiated repairs, the seller should provide receipts or invoices to the title company once contractors complete the work so you can verify what was done.

Under the standard Texas contracts and amendments, repairs must use licensed contractors when licensing applies, unless both buyer and seller agree otherwise in writing.

That distinction matters.

Electrical, plumbing, HVAC, roofing, and structural repairs are areas where lenders—and appraisers—expect licensed work. If repairs are completed by someone unlicensed without a written agreement allowing it, that can create problems late in the transaction. It can also create problems long after closing.

Here’s a real example: I spoke with a homeowner who bought a house with a “new roof.” After a hailstorm, the roof was damaged and she filed an insurance claim. The insurance company refused to pay because there was no proof the roof had ever been replaced. The contractor who installed it never pulled a permit, so there was no record.

The real kicker: the home was in a small town that did not require permits for roof replacements. Unless she could track down the seller, identify who replaced the roof, and provide documentation to the insurance company, she was on the hook for the entire replacement herself.

Even when permits are not required locally, insurance companies and lenders still expect documentation and licensed work.

Not using licensed professionals for repairs that require a license in your area is not recommended.

If you and the seller are comfortable allowing non-licensed or owner-performed repairs, make sure that agreement is:

• explicit
• written
• documented in the contract or an amendment

Clarity here prevents arguments later about whether a repair “counts,” whether it satisfies lender requirements, or whether it will hold up when you need to make an insurance claim.

Closing on a House in Texas: Funding, Possession, and Keys

In Texas, closing and funding are not always the same moment.

Buyers take possession after closing and funding. Your REALTOR® should not hand over keys until the title company confirms funding.

Usually funding is quick and same-day, but if something feels delayed, that’s not the time to improvise. This is a “verify first” stage.

Why Step 11 Matters

When you are closing on a house in Texas, preparation, not optimism is the key.

If you keep your finances stable, verify wiring instructions, handle appraisal/title issues quickly, and do a disciplined walk-through, most deals cross the finish line—even when they’re messy.

In the next step, we’ll cover closing day itself: what you sign, how funding works, and what to expect when the finish line finally becomes “done.”

About Me — Doug Berry, MBA, REALTOR®

The Bow Tie Agent

I’m a REALTOR® with Better Homes & Gardens Senter, REALTORS® who focuses on helping buyers understand the real-world side of homeownership — from lending and budgeting to navigating underwriting without surprises. With an MBA and experience as a lender with USDA Rural Development’s mortgage programs, I approach the process the same way I do with clients: clearly, calmly, and without sales pressure.

If you have questions about this step, need help preparing for a home purchase, or want a second set of eyes before making an offer, feel free to reach out:

📧 Doug@senterrealtors.com

📞 325-338-9734

🌐 www.dougberry.realtor