🏡 What Happens After You Go Under Contract on a Home in Texas? (Step-by-Step Guide)

If you’re buying a home in Texas — especially in areas like Garland, Rowlett, Wylie, Sachse, or Murphy — one of the biggest questions after your offer is accepted is:

👉 “What happens next?”

Because going under contract is exciting…

👉 But it’s also where the real process begins.

🧠 The Real Answer

👉 Once you’re under contract, you’re moving through a series of steps that lead to closing

Each step is important — and missing something can cause delays or issues

👉 The good news:

👉 With the right guidance, this process is very manageable

⏳ Step-by-Step: What Happens After You Go Under Contract

📝 1. Option Period (Inspection Period)

In Texas, you typically have an option period (usually 5–10 days)

During this time:

• You schedule a home inspection

• Evaluate the condition of the home

• Decide if you want to move forward

👉 This is your opportunity to:

• Negotiate repairs

• Ask for concessions

• Or walk away if needed

🔍 2. Home Inspection

Your inspector will review:

• Structure

• Roof

• HVAC

• Plumbing

• Electrical

👉 You’ll receive a report outlining:

• Issues

• Maintenance items

• Potential concerns

👉 The purpose of the inspection is to protect the buyer’s interests

It’s not about making the home perfect — it’s about:

• Understanding the true condition of the home

• Identifying potential risks

• Giving the buyer clarity before moving forward

👉 This is where many negotiations happen

Based on the inspection, buyers may:

• Request repairs

• Ask for concessions

• Or move forward as-is

👉 This step is about making informed decisions — not just finding problems

💰 3. Earnest Money & Option Fee

💰 3. Earnest Money & Option Fee

You’ve already submitted:

• Earnest money (shows commitment to the contract)

• Option fee (gives you the right to terminate during the option period)

👉 Earnest money is NOT money you lose

As long as you move forward with the purchase:

👉 That deposit is applied toward your closing costs or down payment

👉 Think of it as:

👉 Money you’re putting toward the purchase early — not extra money

👉 The only time earnest money is at risk is if you:

• Back out after certain contract deadlines

• Or don’t follow the terms of the contract

👉 That’s why understanding timelines is so important

👉 The option fee, on the other hand:

• Is typically a smaller amount

• Is paid to the escrow officer with the earnest money

• And is usually non-refundable

👉 Together, these are part of how Texas contracts are structured

🏦 4. Loan Processing & Underwriting

Your lender now moves forward with:

• Verifying income and documents

• Finalizing loan approval

• Ordering the appraisal

👉 This is one of the most important steps

📊 5. Appraisal

The lender orders an appraisal to confirm:

👉 The home’s value matches the purchase price

👉 The appraisal is there to protect the lender — not the buyer

Because the lender is financing the home, they want to make sure:

👉 The property is worth what they’re lending

👉 Here’s what can happen:

✅ Appraisal Comes in at Value

Everything moves forward as expected

⚠️ Appraisal Comes in Below Value

This is where things can shift.

Options may include:

• Renegotiating the price

• The buyer bringing additional funds

• Meeting somewhere in the middle

• Or terminating the contract (depending on terms)

👉 This is one of the most important moments in the transaction

👉 And it’s also where strategy and communication matter most

👉 The key takeaway:

👉 Just because you’re under contract doesn’t mean everything is final yet

🔧 6. Repair Negotiations (If Needed)

Based on the inspection:

• You may request repairs

• Or ask for concessions

👉 Seller may:

• Agree

• Negotiate

• Decline

👉 This step requires strategy

🧾 7. Final Loan Approval (Clear to Close)

Once everything checks out:

👉 You receive clear to close

This means:

• Loan is approved

• Final numbers are ready

🏡 8. Final Walkthrough

Before closing:

👉 You walk through the home again

To confirm:

• Repairs are completed

• Condition is as expected

✍️ 9. Closing Day

This is the final step.

You’ll:

• Sign documents

• Finalize your loan

• Receive keys

👉 You officially become a homeowner

⚠️ The Biggest Mistakes Buyers Make During This Phase

❌ Making Big Financial Changes

• Don’t open new credit

• Don’t make large purchases

👉 This can impact your loan approval

❌ Skipping or Rushing Inspection

This is your chance to fully understand the home

❌ Not Understanding Deadlines

Texas contracts are timeline-driven

👉 Missing deadlines can cost you

🧠 What I See With Buyers in Garland TX

Most buyers feel:

• Excited

• A little overwhelmed

• Unsure what’s next

👉 That’s completely normal

👉 The key is having someone guide you step-by-step

🔑 How I Help Buyers Through This Process

I help you:

• Understand each step

• Stay on track with deadlines

• Navigate negotiations

• Avoid common mistakes

👉 This is part of the Confident Move Method — giving you clarity from contract to closing

🔗 Related Questions You Should Ask

👉 What Are the Closing Costs When Buying a Home in Garland TX?
👉 How much do I need to buy a home in Garland TX?
👉 What Credit Score Do I Need to Buy a Home in Texas?

Explore More Garland TX Real Estate Resources

Looking for more buyer and seller tips in Garland TX and the surrounding area? Visit my complete Resource Center for helpful local guides, market insights, and step-by-step real estate advice.

[Garland TX Real Estate Resource Center]

❓ FAQ — Under Contract Process

How long does it take to close on a home in Texas?

Typically 30–45 days, depending on financing and contract terms.

Can I back out after going under contract?

Yes — during the option period, you can terminate for any reason.

What happens if the appraisal is low?

You may renegotiate, bring additional funds, or terminate depending on your contract.

What should I NOT do during this time?

Avoid major financial changes and stay in close communication with your lender and agent.

📞 Next Steps

If you’re buying a home in Garland or nearby areas and want to feel confident through every step, the best first step is simple:

👉 Know what to expect BEFORE you get there

We’ll:

• Walk through the process

• Keep everything on track

• Help you move forward with confidence

Ginger McCallum is a residential real estate expert serving Garland, TX, Rowlett, Wylie, Sachse, and Murphy who helps buyers navigate the process from contract to closing using the Confident Move Method.

Ginger McCallum - Realtor
1002 Raintree Cir
Allen, TX 75013
469-879-3484
https://gingermccallumhomes.com