Quick answer: After your offer is accepted on a Houston home, use the option period to get inspections, review the seller’s disclosure, and negotiate repairs or credits. If the appraisal comes in low, you may need to revisit the price or bring more cash. Keep your finances stable during underwriting, plan for more than the down payment, and finish the closing disclosure review, walkthrough, wire transfer, and signing.
Your offer was accepted. The period between contract and closing is where deals are made or lost. Here is what happens step by step.
The Option Period (Days 1-7)
In Texas, you pay a small option fee ($100-$500) for the right to terminate during this period for any reason. Use it wisely:
- Schedule your general inspection immediately
- Order specialized inspections based on findings
- Review the seller's disclosure
- Negotiate repairs or credits
The Inspection: What to Focus On
In Houston, focus on: roof condition, foundation (clay soil issues), HVAC (critical in our climate), plumbing (older pipe types), and electrical systems.
What If the Appraisal Comes in Low?
- Renegotiate the price down
- Bring the difference in cash
- Meet in the middle with the seller
Understanding your real buying power before making an offer is critical.
Do Not Change Anything During Underwriting
The rule: Do not buy a car. Do not finance furniture. Do not open new credit cards. Do not make large unexplained deposits. Stability keeps deals together.
Cash to Close Is More Than the Down Payment
It includes: down payment, closing costs, prepaid property taxes, prepaid insurance, and escrow reserves. Houston's property taxes can significantly impact the final number.
Clear to Close Is Not the Finish Line
Final steps remain: closing disclosure review, final walkthrough, wire transfer, and document signing. Smooth closings are the result of preparation from day one.
Frequently asked questions
What should I do during the Texas option period?
During the option period, listed as days 1 through 7, you pay $100 to $500 for the right to terminate for any reason. Schedule a general inspection immediately, order specialized inspections based on findings, review the seller’s disclosure, and negotiate repairs or credits. In Houston, focus inspections on the roof, foundation, HVAC, plumbing, and electrical systems.
What are my options if the home appraisal is low?
If the appraisal comes in low, you can renegotiate the price down, bring the difference in cash, or meet in the middle with the seller. Understanding your real buying power before making an offer is critical.
What financial changes should I avoid before closing?
During underwriting, do not buy a car, finance furniture, open new credit cards, or make large unexplained deposits. Keep your finances stable rather than making changes during this stage. Stability helps keep the deal together between contract and closing.
What expenses count toward cash to close in Houston?
Cash to close includes your down payment, closing costs, prepaid property taxes, prepaid insurance, and escrow reserves. It is more than just the down payment. Houston’s property taxes can significantly affect the final amount you need to bring.
What still needs to happen after clear to close?
Clear to close is not the finish line. You still need to review the closing disclosure, complete the final walkthrough, make the wire transfer, and sign documents. Preparation from day one helps the closing go smoothly.
Reviewed by Ben Helstein, Texas real estate broker (TREC 727703-B) and mortgage loan originator (NMLS 1577314), InSync Loans NMLS 1829321. Last reviewed September 2026.
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