One of the biggest differences between Texas and many other states is how closings are handled.
Texas is a wet funding state, which means:
✔️ All money must be received and verified before the transaction is considered closed
✔️ Buyers do not get keys until funds arrive
✔️ Sellers do not receive proceeds until funding is complete
✔️ The deed is not recorded until the deal is fully funded
This is different from “dry funding” states, where documents may be signed and recorded before funds arrive.
Let me walk you through exactly how funding and recording work in Texas, and what that means for you.
1. What Does “Wet Funding” Mean?
In a wet funding state like Texas:
✔️ Lender funds the loan first
✔️ Title company must physically receive the funds
✔️ Only then can the deed record and keys be released
Everything happens the same day (in most cases).
This is designed to protect all parties and reduce fraud.
2. How Funding Works on Closing Day
Here’s the exact sequence of events once you sign your closing documents:
Step 1: Buyer signs
Step 2: Seller signs
Step 3: Title company sends documents to lender
Step 4: Lender reviews the signed documents
Step 5: Lender approves them for funding
Step 6: Lender wires the funds to title
Step 7: Title confirms the receipt of funds
Step 8: Title releases keys to the buyer
Step 9: Title records the deed with the county
This process typically takes 1–3 hours after signing, depending on the lender.
3. Why Texas Requires Wet Funding
Texas adopted wet funding requirements to protect:
✔️ Buyers
✔️ Sellers
✔️ Lenders
✔️ Title companies
Wet funding helps prevent:
❌ Fraud
❌ Bad checks
❌ Incomplete documentation
❌ Ownership disputes
❌ Gaps in title
❌ Unfunded transfers
Texas is also a non-disclosure state, which makes securing title ownership even more important.
4. How Recording Works After Funding
Once funds are received, the title company can record the deed.
✔️ Recording transfers legal ownership
✔️ Recording enters the transaction into county records
✔️ Only after recording is the sale official
In most North Texas counties, recording happens:
✔️ Same business day
or
✔️ First thing next morning if closing was late in the day
I track the recording for you and notify you as soon as it's complete.
5. What Can Delay Funding?
Several factors can slow down the funding process:
❌ Lender backlog
❌ Missing signatures
❌ Last-minute underwriting conditions
❌ Wire transfer delays
❌ Incorrect homeowner’s insurance binder
❌ Title company waiting on payoff statements
❌ Repairs not verified from walkthrough
Most delays are avoidable—with the right preparation.
6. What Can Delay Recording?
Recording delays are rare, but can occur if:
✔️ Closing happens after county recording office hours
✔️ Title needs to verify one last document
✔️ Funding arrived too late in the day
Even if recording happens the next day, you still get the keys once funding is confirmed.
7. When Buyers Get the Keys
This is the part everyone cares about.
You get the keys AFTER funding, not after signing.
This means:
✔️ If your lender funds quickly → keys same day
✔️ If lender funds slowly → keys later that day
✔️ If funding happens after hours → keys next morning
I keep constant communication with title and lender so you're not waiting longer than necessary.
8. When Sellers Receive Their Money
Sellers get their proceeds:
✔️ After funding
and
✔️ After title confirms disbursement
Funds are typically sent by:
✔️ Wire transfer
or
✔️ Check (less common)
Most sellers receive proceeds the same day, unless closing is very late.
9. How I Prevent Funding Delays
When I represent buyers or sellers, I’m extremely proactive about funding.
I make sure:
✔️ Lender has everything needed well before closing
✔️ Title receives wire instructions early
✔️ Buyer wires funds in advance
✔️ Final walkthrough is done on time
✔️ All repair receipts are submitted
✔️ Insurance is active
✔️ No last-minute underwriting issues
✔️ CDs are approved on time
Most funding delays happen because someone didn’t do one of these steps early enough.
I make sure that someone is never you.
10. Mobile Notaries & Remote Closings
Some closings happen using:
✔️ Remote Online Notarization (RON)
✔️ Mobile notaries
✔️ Offsite signing
Even with remote closing options:
✔️ Funding must still occur before keys are released
✔️ Documents must still be returned to title for review
✔️ Title must still confirm all signatures
Remote doesn’t mean instant—but it’s very convenient.
11. My Rule of Thumb
**Signing is not closing.
Funding is closing.**
In Texas, the deal isn’t done until money hits the title company’s account.
Bottom Line: Texas Wet Funding Protects You—and Keeps the Process Secure
Funding and recording are the final steps that make your home legally yours.
When I represent you, I make sure:
✔️ Funding happens as fast as possible
✔️ Nothing delays your keys
✔️ Title and lender stay coordinated
✔️ Every document is correct before signing
✔️ You know exactly what to expect on closing day
Closing should be exciting—not stressful.
I make sure the finish line is smooth.
Want a Realtor Who Manages Your Closing Day with Precision?
If you want a smooth, stress-free closing in North Texas, I’d love to help.
