This is where your real estate agent and loan officer work together to help you take the next big step toward homeownership.
Your agent will prepare the offer, and your loan officer will provide a pre‑qualification or pre‑approval letter tailored to match the terms of your offer. Once all parties agree and sign the contract, it is sent to a title company to be “escrowed.”

What Does It Mean for a Contract to Be Escrowed?
Great question—and one that many first‑time homebuyers ask.
Most home purchase contracts in Texas require earnest money, which is a deposit the buyer gives to the seller to show good faith and commitment to the transaction.
What Is Earnest Money?
Earnest money is essentially a financial promise that you intend to follow through with the purchase. While not technically insurance, it functions similarly by giving the seller confidence to take their home off the market.
Typical earnest money amounts range from:
• $500 to 1% of the purchase price, depending on the market and seller expectations.
What Happens to Earnest Money?
• If you breach the contract, the seller may keep the earnest money.
• If you follow the contract and close, the earnest money is applied toward your down payment or closing costs.
The earnest money is held in an escrow account at the title company you choose. Once all parties have signed and dated the contract, it becomes executed. When the earnest money and a copy of the contract are delivered to the title company, the contract is officially escrowed.

What Happens After the Contract Is Escrowed?
Once the contract is executed and escrowed:
• Your lender will need a copy of the fully executed contract
• You’ll also provide a copy of the earnest money check or the receipt from the title company
• Your loan officer will begin the formal loan process, ordering disclosures, verifying documentation, and preparing your file for underwriting
This is where the financing side of your home purchase really begins to move forward.