What to expect between the offer acceptance and the closing of a home sale.

Whether you’re a first-time home buyer or it’s been a long time since you purchased a home, you need to know what happens after a seller says “yes” to your offer. Here’s what buyers can expect between offer acceptance and closing.

Earnest money gets deposited

Earnest money shows the seller you’ve made the offer in good faith. Once the offer is accepted, the buyer deposits the agreed-upon amount in an escrow account. Real estate agents typically coordinate the transfer of funds.

A closing date is established

Your purchase offer will include a date by which the deal needs to be completed. In most cases this is within 30 to 60 days after the offer is accepted. The closing date is when you sign paperwork and take ownership of the home.

Keep in mind that buyers don’t always take possession of the home at closing. In some cases, the buyer and seller agree that seller can stay in the home for a short period in exchange for a rent payment.

Loan processing is completed

If you’re prequalified for a mortgage, your lender finalizes the loan process through approval. If you’re preapproved, your home loan processing is nearly complete. Your lender will review your credit report to ensure nothing has materially changed since you first applied. Learn about the difference between prequalification and pre-approval here.

The home is inspected by a professional

Most home purchase offers are contingent on a satisfactory home inspection by a professional inspector. When you receive the inspector’s report, you’ll assess the results. If significant problems are discovered, you will have to decide if you want to request a concession from the seller, ask the seller to remedy the problem or walk away from the deal. Discover the top reasons homes fail inspection.

Title is reviewed

A title company will be enlisted to review the title to make sure there are no liens, other claims on the property or recording errors. These title insurance FAQs provide more details on how the title review protects you.

Utilities and homeowners insurance is set up

Buyers contact utility providers to get service at the home set up in their name as of the closing date.

Most folks also take out homeowners insurance. If you have a mortgage, you will be required to show proof of insurance at closing.

A final walkthrough

Just before closing (usually one or two days) the buyers do a final walkthrough to make sure the condition of the home is as it was when they last viewed it. It’s also a time buyers can verify that any repairs the seller agreed to do have been completed.

The closing

Closing day is when you seal the deal. You’ll finalize your mortgage paperwork. Closing costs will be paid in cash or rolled into the home loan.

At least three days before closing, you’ll receive a detailed Closing Disclosure from your lender. It will list the loan terms, monthly payments, escrow (if applicable) and closing costs. Review this document carefully. If you have questions about anything, ask your lender before your closing appointment.

Just before closing, the seller will also receive a settlement statement showing what expenses they will pay on pro-rated basis (like taxes or HOA fees), commissions and recording charges, as well as what amount goes to pay off an existing home loan and what funds they’ll receive.

Get the info you need

Our mortgage loan officers can help you through all the ins and outs of home loans—give us a call at 800-991-2221 to get answers to any of your home financing questions.

 

All loans subject to approval. Rates, terms, and conditions are subject to change and may vary based on credit worthiness, qualifications, and collateral conditions.