The Closing Process: A Comprehensive Guide for Texas Home Buyers and Sellers

Whether you're a first-time buyer or you’ve got a few home sales under your belt, the closing process can be a major pain in the best of times — and for most folks, it’s not exactly something they have to think about more than a handful of times in their lives.

That’s why Chrissy the #DentonRealtor is here to explain the ins and outs of the closing process in Texas! Whether you’re buyin’ or sellin’, this is everything you need to know so that you’re prepared for all the stops (and steps!) along the way.

What Is the Closing Process?

The closing process is the final step in the home-buying or selling process where the buyer pays the seller for the property and the seller transfers ownership of the property to the buyer.

Basically, this is where all the most important documents get signed and verified — be ready to dot your eyes and cross your teas!

The title company representative will guide you through the process and ensure that all the necessary documents are signed and filed correctly.

Obviously, this is super important — any missteps here can cause problems down the line, especially if ownership isn’t transferred properly.

However, any decent real estate agent is extremely familiar with the process and has good working relationships with all the businesses that have to be involved, including the title company. They’ll make sure the title company is rock solid so that you don’t have to worry about them making a mistake.

Once all the documents are signed and filed, the buyer will receive the keys to the property, and the seller will receive payment for the property (with closing costs subtracted of course).

What if The Seller Is Paying Cash? What if I’m Buying with Cash?

When cash is involved, some steps become optional because there’s no mortgage involved. For example, you don’t have to get an appraisal, you don’t have to get an inspection— we highly recommend you still get an inspection, and you can avoid a title search although you will still go through title for a policy. 

If you’re the buyer, you don’t even have to have homeowners insurance! Many of these things are required by lenders, not the state of Texas — if there’s no lender involved, you can scrap them if you want.

However, just because you can skip these steps doesn’t mean you should. Getting a home appraised helps both buyer and seller understand how good (or not so good) of a deal they’re getting.

The same goes for a title search. If you drop some serious cash on a home and then find out much later that someone else owned it (and still owns it), then you’re going to have some major problems.

So yes, cash can simplify and speed up the process, but any good realtor is going to urge you to do these things anyway.

The Closing Process for Texas Home Buyers

Once you’ve got all your ducks in a row and your offer has been accepted, you need to schedule a closing date, which is usually about 30–45 days after the seller accepts your offer. 

This is when you'll need to secure financing, complete a home inspection, and obtain homeowner's insurance (if you’re not paying cash).

Some of this might already be set up before you even make an offer — for example, if you’re preapproved for a mortgage by a lender, this might accelerate the timeline.

If you’re not careful, as the buyer, you can cause delays in a sale. If you take on new debt, change your address, or get a different job, this can cause the lender to have to reevaluate the mortgage.

Other problems can come up that push back the date, like missing documents, a low appraisal, or a new lien on the property.

If everything goes smoothly, you’ll make it to closing day in style! In most cases, you'll meet with your real estate agent and a title company representative — the seller and their agent don’t have to be there.

The title company representative will guide you through the process and ensure that all the necessary documents are signed correctly — they take care of the filing.

For this process, you need a government-issued ID of some sort, a cashier's check or certified check for the closing costs (if your lender or the seller isn’t going to cover them), and any other documents your real estate agent tells you to bring — proof of homeowners insurance, for example.

Closing costs can range from 3% to 6% of the purchase price of the home. Your lender might offer you “lender credits,” which means they cover the closing costs and you end up paying some not-insignificant interest on them. It’s best if you can cover them yourself.

It’s also possible that the seller will pay these costs for them as part of the purchase — it all depends on the negotiations that you go through before closing.

Closing costs range so widely because they include so many different potential fees. You might be paying for the appraisal, for the inspection, for legal fees, for credit reporting fees, or many other small costs that add up over the course of the sales process.

The Closing Process for Texas Home Sellers

If you’re selling your home, you’ve still got plenty to do!

You'll need to sign a sales contract, which outlines the terms of the sale, including the purchase price and any contingencies.

Contingencies are just special clauses in the contract that allow the buyer or seller (or both) to back out of the contract if certain things do or don’t happen.

For example, a very common contingency is that the buyer is first able to sell their previous home (because they won’t have the money to buy your home without it). That way, if the buyer can’t sell their current home, they’re not obligated to buy your home.

An appraisal contingency is also common. This is where the contract can be nullified if the house doesn’t appraise as expected.

Once you have a signed contract and everything is squared away, you'll need to work with a title company to prepare the necessary documents for closing, much like the buyer has to.

Just like the buyer, you can take care of all this with just you, your real estate agent, and the title representative — you don’t ever have to see the buyer if you don’t want to.

And, just like the buyer, you need to bring your ID, but you also need to bring keys to the home, garage door openers, codes to alarm systems, and anything else that the buyers will need (for example, receipts for repairs or other outstanding documents your real estate agent has asked you for).

The title company representative will guide you through the process and ensure that all the necessary documents are signed and filed correctly. You'll also receive payment for the property minus any closing costs, such as real estate commissions.

And then, you’re done! The buyer walks into their new home, you walk away with a stack of cash, and everyone’s happy.

Compared to the difficult and sometimes very expensive buying and selling process in other states, Texas really is the place to be! If you’re looking for your next home, let me know! I’d love to help.

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Meet Chrissy Mallouf: Denton's Premier Real Estate Agent and TV Host

Experience the difference with Chrissy Mallouf, where real estate expertise meets a love for Denton! Chrissy is, your #DentonRealtor!

With over three decades of residency and an unwavering commitment to Denton, she's developed unmatched expertise in the local real estate scene. As a multi-time #1 agent at Keller Williams Realty Denton and a recipient of prestigious "Best of Denton" titles for 10 consecutive years, Chrissy's impact on the community is undeniable.

She's not just a top-producing Realtor; she's also a dedicated wife and mother who balances her family life with professional success. In a delightful surprise to her real estate career, Chrissy is now a television host on The American Dream, showcasing Denton's vibrant culture and real estate to a national audience. In every sense of the word, Chrissy Mallouf is your #DentonRealtor, a tireless advocate for her clients, and an asset to the Denton community.

When you're ready to make Denton your home, trust Chrissy to guide you through every step of the journey.