The keys are yours: what to do in the weeks and years after closing

The short list for the first month

After closing on a home you will live in, file for the residence homestead exemption with the county appraisal district, which is the Dallas Central Appraisal District (DCAD) for most homes in Dallas County; put your closing package and owner's title policy somewhere safe; and sign up for the county's free property fraud alert so you are notified if a document is recorded in your name. Then watch your first property tax bill against the proration on your closing statement, and keep your homeowners insurance and mortgage paperwork organized.

We at Capital Title hand buyers a lot of paper at closing, and most of it goes into a box that does not get opened again until something goes wrong. This guide explains which pieces matter after closing, what to do with them and what to think about the next time you refinance or sell.

Filing the homestead exemption

If the house is your principal residence, the homestead exemption lowers its taxable value and therefore your property taxes. According to the Texas Comptroller, the application is filed with the appraisal district in the county where the property is located, the general deadline is before May 1, and an owner who acquires a home after January 1 may receive the exemption for the rest of that year if the previous owner did not receive it for the same year.

DCAD says only a one-time application is required, unless the chief appraiser asks you to reapply or your homestead changes. DCAD lets many single and married homeowners file online from the account page for their property. Have a copy of your Texas driver's license or ID ready, and update its address to the new home first, because DCAD expects the address on your license to match the homestead property.

If the appraisal district's records still show the previous owner 90 days after closing, DCAD's FAQ suggests contacting its exemptions department. Recording at the county and updating at the appraisal district are separate steps, and the second can lag.

Owners who are 65 or older or who are disabled may qualify for an additional exemption, according to the Comptroller, and a surviving spouse may be able to keep a deceased spouse's age-based exemption in some cases. If that could apply to anyone on title, mention it when you file rather than waiting a year.

Your first tax bill and the proration

The current year's property tax bill usually has not been issued when you close, so the closing statement estimates it and splits the year between seller and buyer. Most Texas resale contracts prorate taxes through the closing date and provide for an adjustment between the parties if the actual bill differs from the estimate. Check paragraph 13 of your contract for the exact wording.

Two things commonly change the number. The prior year's exemptions may not apply to you, and the property's value may have been reappraised. If you have a mortgage with an escrow account, your lender will usually pay the bill, but you should still look at it and compare it with what was collected at closing. If you paid cash, the bill comes to you.

If the actual bill turns out higher than the estimate and your contract calls for an adjustment, the buyer and seller settle the difference between themselves; the title company has already closed the file. Keep the seller's contact information or your agent's, and raise it promptly and politely. Most of these adjustments are resolved with a short exchange of figures.

What to keep, and for how long

Make one folder, paper or digital, and put these in it. You will want every one of them when you refinance, sell or face a question about the property.

Keep the folder for as long as you own the house, and keep the owner's policy even after you sell. TDI notes that title warranties you make when you sell may last indefinitely, and depending on its terms your policy may continue to provide coverage on them.

• The settlement statement and your Closing Disclosure
• A copy of the recorded deed, once it comes back from the county
• Your owner's title policy, which arrives after closing
• The survey and any T-47 affidavit or declaration used at closing
• Your note and deed of trust, and later, any payoff letter and release of lien
• HOA documents, the resale certificate and any warranties transferred to you

The owner's policy after closing day

The Texas Department of Insurance notes that you will receive the paper owner's policy about 30 days after closing, although coverage begins at closing. It needs no renewal, and coverage continues as long as you or your heirs own the property. TDI does not keep copies, so if you lose yours, you will need the title company that issued it or the underwriter.

Two events can change your coverage. If you add major improvements or the home gains significant value, TDI says an increased value endorsement is available; otherwise coverage stays at the policy amount. And if you later deed the house into a trust, an LLC or to your children, coverage may be affected depending on the policy type, so ask your title agent or an attorney before you sign that deed. If someone ever claims an interest in your property, notify the title company promptly. My guide on owner's and loan policies explains what the policy does and does not cover.

Put a free alert on your name at the county

Title fraud does not end at closing. Criminals sometimes record forged deeds or try to borrow against homes they do not own. The county clerk offers a free property fraud alert, through its partnership with Neumo Property Alerts, and encourages all property owners to register. It notifies you when a document is recorded under your name, which means you hear about a problem early rather than when you try to sell.

If you ever find a deed you did not sign, the clerk's site describes a process that starts with an owner's affidavit regarding a purported conveyance, and there is no fee to record those documents. Talk to a real estate attorney at that point as well. The same caution applies to your money: a scam email after closing, claiming to be from your lender or title company and asking for payment, deserves the same phone verification I describe in my guide on avoiding wire fraud with closing funds.

Register every version of your name that might appear on a document, including middle initials, maiden names and the name of any trust or company that holds title. An alert keyed only to one spelling can miss a filing under another. It takes a few minutes and costs nothing.

Insurance and the house itself

Title insurance and homeowners insurance do different jobs. Title insurance protects your ownership and is paid for once; homeowners insurance covers fire, weather and theft and renews every year. Your first homeowners renewal is the time to check that the coverage still matches the house, especially if you have remodeled.

Keep your declarations page in the same folder as your closing documents, and tell your agent about anything that changes the risk: a remodel, a pool, a new roof or a home office. A policy that matched the house on closing day can drift out of date quickly once you start making it your own.

If that renewal comes in higher than you expected, an insurance agent's guide on what to do when your homeowners renewal jumps walks through the options before you pay.

Mortgage paperwork after the closing

It is common for the company that collects your mortgage payments to change after closing. When you receive a notice saying your loan has a new servicer, confirm it by calling the number on a statement you already have, not one in the letter, before you send a payment anywhere new.

When you eventually pay off the loan, through a sale, a refinance or the final payment, make sure a release of lien is recorded with the county. An unrecorded release is one of the most common title problems I see when owners sell years later. Keep the payoff letter in your folder; it is often the fastest way to fix a missing release.

If you have an escrow account for taxes and insurance, expect your lender to review it each year. When taxes or premiums rise, your monthly payment can rise with them, even on a fixed-rate loan. That is not an error; it is the escrow account catching up. Your annual escrow statement explains the change.

The next time you refinance or sell

Pull out your folder before you call anyone. If you sell, the survey and a signed T-47 affidavit or T-47.1 declaration may let the buyer avoid a new survey, as long as nothing on the lot has changed. Your old owner's policy and closing package help the title company move faster, and any release letters prove that old loans are gone.

If you plan to remodel, add a pool or build a fence, keep the permits and contractor paperwork with the folder too. Those changes may mean the old survey will no longer be accepted, and they matter to your insurer as well. Final lien waivers from contractors are worth keeping for the same reason.

If you are buying or selling in the Park Cities or nearby and want the file handled by someone who will explain each step, call our office at Preston and Lovers, open weekdays 8:30 to 5. Bring your folder, and we will tell you exactly what in it we can use.

Questions people ask me