he Option Period & Home Inspection
After your offer is accepted, the first major step is typically the home inspection. While not required by lenders, a home inspection is strongly recommended for every buyer.
Most Texas contracts include an option period, which gives you the unrestricted right to cancel the contract for any reason. Here’s how it works:
• The option period is usually 10 days, though this can vary.
• You pay a small option fee to the seller for this right.
• During this time, you schedule your home inspection.
• If the inspection reveals major issues, you can walk away with no penalty.
In Texas, home inspectors are licensed by the Texas Real Estate Commission (TREC). Hiring a licensed inspector helps uncover potential issues and gives you the opportunity to negotiate repairs or credits before moving forward.

Signing Your Electronic Disclosures
Once we receive your executed contract, lenders are required to send your initial disclosure package within three business days. These disclosures include:
• Your Loan Estimate (LE)
• Required authorizations
• Important loan details
• Federal and state disclosures
These documents are sent electronically to the email address we have on file.
It’s important to review and e‑sign them as soon as possible, because we cannot begin processing your loan until they are acknowledged. Delays in signing can delay your closing date—and nobody wants that.

Ordering the Appraisal
After the option period ends, the next major step is the appraisal. The lender orders the appraisal, but the borrower must authorize it.
What to Expect:
• Appraisals typically take about 7 business days.
• The appraiser will visit the home to measure, photograph, and evaluate the property.
• They will then complete the appraisal report offsite using recent comparable sales.
• You will receive a copy once it’s complete.
How the Appraisal Affects Your Loan
Your loan amount is based on the lower of the sales price or the appraised value.
Example 1: Appraisal Comes in Low
• Purchase price: $100,000
• Appraised value: $90,000
• Conventional loan with 5% down
The lender can only lend 95% of $90,000, not the sales price.
You would need to either:
• Renegotiate the sales price, or
• Bring the difference to closing
This is common—and usually fixable.
Example 2: Appraisal Comes in High
• Purchase price: $100,000
• Appraised value: $110,000
Great news—you’re buying the home for less than it’s worth.
However, the down payment is still based on the sales price, not the higher value.
So you would still put 5% of $100,000 down.

Final Loan Approval
Once all required documentation is submitted and the appraisal has been completed and reviewed, the underwriter can issue your Final Loan Approval. This is one of the biggest milestones in the homebuying process and means you’re officially on track for closing.