OK Mr. Realtor in Katy TX when do I actually own the home I am buying?

Real Estate Agent with Berkshire Hathaway HomeServices Anderson Properties TX Real Est. 567774


OK Mr. Realtor in Katy TX when do I actually own the home I am buying?


Just in case some folks do not understand the purpose of some of my recent blog I will provide a brief explanation.  There currently is an Active Rain Contest/Challenge where we are to write blogs about frequently asked questions from our clients. This blog below will be my third of a series of 10 blogs all with questions my clients ask on a frequent basis and my answers. I do plan to copy some of my blogs onto my web site and make these blogs separate pages. When clients ask the questions I will send the link to them and answer if I am speaking to them.


Home buying and selling is a process with many steps involved. The final step is closing and here in Texas we close at a Title Company. Normally, the seller will pay the new owners title policy and in return the seller will pick the corresponding Title Company. The applicable Title Company will hold the earnest money in escrow until the sale closes. The closing is held at the Title company’s office.  I should also mention that the title policy I am talking about previously names the buyer as the beneficiary. There is also a title policy required by the buyer’s lender and normally the buyer will pay the cost of this policy. In total we have two title policies and I mention this as many of my clients get confused when they read the HUD 1 and find they are being charged for a title policy.


The closing process involves both buyer and seller to sign several documents. The buyers stack of documents is always much larger as the buyer’s lender provides a vast majority of the documents involved. As a buyer you will be required to bring a Cashier’s Check for the portion of the proceeds you will be paying at closing. The math is usually pretty simple being the total cost to the buyer less the amount the buyers are borrowing from the lender and this clearly shown on the HUD 1 as required by law. This is all fine and easy to understand. Once all the documents are signed the Title Company has to receive the funds from the lender and the term commonly used is funding.


OK Mr. Realtor in Katy TX when do I actually own the home I am buying? The buyer does NOT own the home until the loan has funded. The buyer cannot move in to the home until the loan funds unless the buyer has a prearranged lease agreement with the seller that begins immediately on the closing date.


I advise my clients that closing on any given Friday might be problematic especially when they are planning to move in over the weekend. No one can guarantee that any loan will be funded on any specific day. There are so many variables involved. I tell folks to close on Thursday and do not arrange for any moving of household goods until Saturday.  If funding take beyond the next day the there is a serious issue and the home will probably not close at all.


I personally had a situation a few years ago where I had buyers moving from out of state and their closing was on a Friday early in the morning. One would think this was no problem but it turned to be a huge issue. The lenders office where funding occurs for this early August Friday was staffed by only one individual. The Title Company called me late in the afternoon to state that the one lady who was working was telling them she would not get to this wire and the loan would be funded on Monday. Huge problem as my out of town buyers had this large moving truck steaming towards Katy with an ETA of early Saturday morning. My clients did not yet own the home and could not move anything into this home until Monday after the funds were verified as being received. Who was going to pay for this mess? Lucky for me I caught the loan officer trying to sneak out early on a Friday afternoon with his golf clubs in hand. I had spoken to his assistant several times and she liked me and had delight in her voice when she told me he was trying to leave early. After a few minutes of me giving him a Come to Jesus lecture and me telling him that his bank was going to be liable for all direct and indirect costs incurred by my clients since their stuff would have to be stored over the weekend and then taken out of storage on Monday, by pure magic the loan was funded. Trust me when I say no one wants repeat this same situation. Of course I have not spoken to this loan officer since that Friday afternoon but as they say Qui est la vie de mon ami


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© 2016 Bob Gilbert Real Estate


Accredited Luxury Home Specialist


Note: Katy TX is about 25 -30 miles due West of downtown Houston TX.


If you have any questions about Katy Homes for Sale or Katy Homes for Rent in the Katy Texas and/or Sugar Land TX, and/or Cypress TX and/or other surrounding areas, contact me via my cell: 281-904-6772 or via Email:



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Re-Blogged 1 time:

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  1. Dale Baker 05/20/2012 11:42 AM
Real Estate Industry
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John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

OK Mr. Realtor in Katy TX when do I actually own the home I am buying?

Excellent point Bob.  I always tell my home buyers you don't get the keys and it is not your home until it has closed and funded.  I always try to close early in the morning and most get the keys by days end.

May 16, 2012 10:38 PM #1
Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales

Nice post explaining the issue with loan funding at closing Bob, so many of these details are often taken for granted.

May 16, 2012 10:47 PM #2
Dale Baker
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information

Howdy and morning Bob

Bob my friend, folks sure will find this here post mighty helpful to them. You sure are doing an outstanding job with this here blog series of frequent ask questions.

As you always do, you did a mighty fine job of looking out for your Home Buyers of that closing.

Have a good one
Dale in New Hampshire

May 16, 2012 11:30 PM #3
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Dale, John and Al, Thanks for your comments. It amazes me that so many folks think all one has to do is sign the mountain of papers nd the home is their's.

May 17, 2012 04:38 AM #4
Yolanda Cordova-Gilbert
Richmond, TX


        Oh so true and as a builder we hate outside lenders not because they are not with our company but because they do not care if you fund or not. With a builders lender you usually table fund as the wire is prefunded. Did I mention I hate outside lenders?

May 17, 2012 08:19 AM #5
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Home buyers need to anticipate delays in the current market.  The moving van should not be on the road until after the settlement.

May 17, 2012 08:46 AM #6
Joshua Zargari
MJ Decorators Workshop LI staging and home decorating - Lynbrook, NY
MJ Decorators Workshop

Good evening Bob.

You do know the business very well.

A great post indeed.

May 17, 2012 09:04 AM #7
Suzanne McLaughlin
Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN
Sabinske & Associates, Realtor

Wow, what a story.  But, we have actually closed property where it took a week to fund so never give up hope.

May 18, 2012 06:24 AM #8
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

Out here the buyer doesn't own the home until title has been transfered regardless of whether or not the loan has funded.

May 21, 2012 09:25 AM #9
Dale Baker
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information

Howdy and evening Bob

Bob my friend, I stop back to read the comments which were left after I had visited.

Have a good one
Dale in New Hampshire

May 29, 2012 12:06 PM #10
Baker Home Inspection and Commercial Properties Inspections
Baker Residential and Commercial Properties Inspections - Springfield, VT
Home and Commercial Properties Inspections Vermont

Howdy there Bob my friend, you sure post such outstanding Local Info and Real Estate blog posts for folks to enjoy visiting at your outstanding blog full of helpful info. Plus folks sure do always get to find mighty enjoyable reading when they visit. I know other folks sure must also enjoy stopping by to visit your mighty fine blog. Folks if you are needing help with Real Estate, then do take the time to talk with Bob and you’ll sure learn he is the one an only to work along side.

Mar 03, 2014 06:28 AM #11
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