How the deal gets done: Closing on your new home.

A lot has to happen before you can close on a new home successfully. Some of it is your responsibility, and some of it belongs to others. But don’t expect it to happen overnight or perfectly smoothly. There are too many factors involved. And there’s a lot of money riding on the deal, too—not all of it yours. So the wisest thing to do is take care of everything at your end; dot every “i” and cross every “t” that you can from your end of things. Be selective about who you’re doing business with; from the beginning, choose only the most experienced, successful professionals and companies. They have what it takes to make the long, complicated process considerably more bearable. For instance, it’s advisable to go with a Texas-based lender due to specific Texas real estate laws. An out-of-state lender might make some mistaken assumptions that could add to delays.

For most homebuyers, pre-qualifying for a home loan and signing a contract are major steps. But that’s just the beginning of the journey towards home ownership. The rest of the trip can sometimes make or break the deal. During this period, the lender is trying to complete the financial package, the title company is doing the necessary research, surveys and appraisals are put into motion, and the homebuyer orders home inspections and obtains homeowners insurance. Anything that goes wrong at any of these stages could mean delays—or even a broken deal.

As a homebuyer, you need to know that pre-qualifying for a mortgage loan—and actually qualifying for it—are two very different things. The difference between the two can affect the closing date. To get pre-qualified, a homebuyer must meet with the lender and have essential information (Social Security number, income, etc.) on hand. After checking your credit score, income, and employment, the mortgage lender writes a document—based on this preliminary information—that states what size of loan you might qualify for. Remember, this is not a final conclusion or a mortgage loan approval—it’s only the lender’s “educated guess.” Many lenders nowadays encourage homebuyers to skip pre-qualification and go directly to qualification—before they start looking at homes—or, in many cases, even before the contract is signed.

The actual qualification process is much more extensive and in-depth. It typically involves providing the lender with accurate information, W2 forms, bank statements, tax returns, and proof of income. All this goes through the lender’s approval process, which can take time. The up-to-date accuracy of the information you’ve provided is checked and double-checked. Be sure of your facts and figures because any errors, inconsistencies, credit problems, or misinformation could delay the process.

Things a homebuyer should know, expect, or do:

• Lenders should provide buyers with a good-faith estimate of how much money to bring via certified check to the closing. Closing costs typically run about 3 to 6 percent of the loan amount.

• One business day before closing, you have the right to inspect the Uniform Settlement Statement, which itemizes the costs of all services you must pay at closing.

• The lender is responsible for providing a truth-in-lending statement that states all the details about the cost of the loan.

• The title company’s job is to research public records and verify that neither the buyer nor the seller have any lawsuits, liens, or judgments against them or the property.

• One of the real estate agent’s jobs is to stay in contact with the title company during the research phase to ensure that any problems that might surface are dealt with promptly. It’s important to avoid last-minute surprises that could lead to delays in closing.

• Before closing, the smart homebuyer should order inspections on the house and property to ensure that everything is in good shape and that no major repairs are required. Repairs could change the agreed-upon price in the contract. The homebuyer should be there with the inspector to ask questions and get on-the-spot explanations. The cost of an inspection varies based on the location, size, and foundation of the house. Additionally, a termite inspection needs to be ordered by the homebuyer before closing. If the inspector is not certified in this area, another inspector will have to be hired.

• Homebuyers are responsible for getting homeowners insurance and having proof of it at closing. The Texas Department of Insurance says buyers should expect to pay about $400 to $1,000 a year for insurance—and possibly more if the home is in a flood zone. Most lenders recommend an escrow account where funds for insurance and property taxes are automatically set aside each month.

• The lender will require hazard and liability insurance for at least the amount of the loan. At closing, you’ll be expected to pay the first year’s premium for this insurance.

• The homebuyer should schedule a final walk-through of the house right before closing. It would be wise to do the walk-through with your real estate agent to ensure the house is in the agreed-upon condition. Once the closing is done, you’re the owner of the house as-is. You no longer have any legal power to get the seller to fix anything, and the seller no longer has any legal responsibility to do so.

• A settlement agent—usually the title insurance company—typically sets the time and place of closing.