My Offer Was Accepted on a House, Now What?

Congratulations on your accepted offer. This marks the beginning of a structured process requiring careful attention. This article guides you through the phases of home-buying until you receive the keys to your new residence.

Initial Contractual Obligations and Professional Engagement

Immediately following offer acceptance, attention turns to the formal purchase agreement. This legally binding document outlines the transaction’s terms, including the purchase price, closing date, and various contingencies that protect both buyer and seller. Understanding the provisions within this contract is foundational for the steps ahead.

A crucial financial commitment is the earnest money deposit. This deposit, typically a percentage of the purchase price, demonstrates your intent to proceed. Held in an escrow account by a neutral third party, it provides security for both parties. It safeguards the seller against a buyer’s default and is applied towards your down payment or closing costs at settlement.

Engaging a team of professionals is a prompt next step. Your real estate agent guides communication and manages timelines. You might also engage a real estate attorney to review the purchase agreement, provide legal counsel, and protect your interests. This legal review can identify ambiguities or potential issues within the contract.

Secure a qualified home inspector early to evaluate the property’s physical condition. Scheduling this inspection quickly is important, as it often operates under a specific contingency period outlined in your purchase agreement. The earnest money deposit is typically submitted within two to three business days following contract acceptance, usually via wire transfer or certified check to the designated escrow agent.

Comprehensive Due Diligence

The period following offer acceptance is dedicated to comprehensive due diligence, allowing you to thoroughly assess the property’s condition and value. A professional home inspection examines the structural integrity, mechanical systems (HVAC, plumbing, electrical), and overall safety features of the home. While a home inspection provides a broad overview, it does not cover every potential issue, such as pest infestations or radon gas levels.

Depending on the property and local considerations, you might also consider specialized inspections for concerns like wood-destroying organisms, radon, mold, or the condition of well and septic systems. Attending the home inspection allows you to ask questions directly and gain a firsthand understanding of the property’s issues.

An independent property appraisal is typically ordered by your lender. This appraisal determines the property’s current market value, which is essential for the lender to assess the loan-to-value ratio and ensure the property serves as adequate collateral for the mortgage. A certified appraiser visits the property and evaluates comparable sales in the area. The appraisal report provides a professional opinion on the property’s worth.

Reviewing seller disclosures and any homeowner association (HOA) documents is a critical aspect of due diligence. Seller disclosures provide information about known defects or issues with the property that the seller is legally obligated to reveal. HOA documents, if applicable, detail covenants, conditions, and restrictions, as well as financial health and fee structures. Examining these documents allows you to understand any ongoing obligations or potential limitations. Based on inspection findings, you may have the opportunity to negotiate repairs, request credits, or even withdraw your offer if significant issues are unresolved.

Navigating the Financing Process

With the offer accepted, your focus shifts from pre-approval to the full mortgage loan application and underwriting process. This phase requires providing detailed financial documentation to your lender, enabling them to thoroughly assess your creditworthiness and ability to repay the loan. You will be asked to submit recent pay stubs, W-2 forms, and bank statements.

The lender’s underwriting department reviews all submitted documents to verify your income, assets, and liabilities, ensuring they meet the specific loan program guidelines. This includes a comprehensive analysis of your credit report and debt-to-income ratio. Underwriting aims to confirm that the loan presents an acceptable risk level for the lender.

During this period, the lender may request additional information or clarification on specific financial items, known as “conditions.” Responding to these requests promptly helps keep the loan process on track and avoids delays. Maintaining consistent communication with your loan officer is important to address any questions that arise.

Considering an interest rate lock is a significant decision during the financing process. An interest rate lock guarantees a specific interest rate for a set period, typically 30 to 60 days, protecting you from potential market fluctuations. Many borrowers choose to lock after the appraisal is complete and the loan is moving through underwriting. The transition from conditional loan approval to final loan approval signifies that the lender is prepared to fund the mortgage, contingent only upon the final closing procedures.

Clearing Contingencies and Title Review

A significant part of the post-acceptance phase involves clearing the contingencies outlined in your purchase agreement. Contingencies are conditions that must be met for the contract to proceed, serving as protective clauses for the buyer. Common contingencies include inspection, appraisal, and financing. An inspection contingency, for example, allows you to renegotiate or withdraw if serious issues are found during the home inspection.

The appraisal contingency ensures that the property appraises for at least the purchase price; if it appraises for less, you may have options to renegotiate the price or cancel the contract. A financing contingency protects you if you are unable to secure the necessary mortgage loan. Each contingency has a specific deadline by which it must be formally satisfied or waived, often requiring written notice or specific documentation.

A title search is conducted to verify the seller’s legal right to transfer ownership and to uncover any existing liens, easements, or encumbrances on the property. This search examines public records to ensure a clear chain of title, meaning there are no unresolved claims or disputes regarding ownership. Issues such as unpaid property taxes, undisclosed heirs, or unreleased mortgages can complicate the transfer of title.

If the title search reveals any issues, the title company or your attorney will work to resolve them before closing. This might involve obtaining lien releases or corrective deeds. To protect both you and your lender, title insurance is purchased. Lender’s title insurance protects the lender’s investment, while owner’s title insurance protects your equity in the property against future claims or undiscovered title defects that existed prior to your purchase. The formal removal of all contingencies is a crucial step that moves the transaction closer to final commitment from the lender and prepares for the ultimate transfer of ownership.

Final Preparations and Closing Day

As closing day approaches, several final preparations are necessary to ensure a smooth transition of ownership. One of the most important documents to review is the Closing Disclosure (CD), which your lender is required to provide at least three business days before closing. This document itemizes all final loan terms, closing costs, and credits, allowing you to compare them against the Loan Estimate you previously received. Reviewing the CD carefully for any discrepancies is essential before signing.

A final walkthrough of the property, typically scheduled 24 to 48 hours before closing, serves as your last opportunity to inspect the home. During this walkthrough, you will confirm that the property is in the agreed-upon condition, that all agreed-upon repairs have been completed, and that all included items remain on the premises. This is also the time to ensure the property is free of debris.

Arranging for utility transfers, such as electricity, water, and gas, into your name is another practical step that should be completed before closing. You will also need to provide proof of homeowner’s insurance activation to your lender, as coverage must be in effect on or before the closing date. Preparing the funds required for closing, which typically include your down payment and remaining closing costs, is critical. These funds are usually transferred via a wire transfer or provided as a certified cashier’s check directly to the title company or closing attorney.

Closing day is the culmination of the entire home-buying process. You, your agent, the seller (or their representative), the closing agent, and potentially your attorney and lender’s representative will gather to sign a multitude of legal documents. These documents include the deed, which transfers ownership from the seller to you, and the mortgage or deed of trust and promissory note, which formalize your loan agreement with the lender. Once all documents are signed and funds are disbursed, you will officially receive the keys, signifying your legal ownership of the property. Following closing, it is advisable to promptly activate your utilities and consider changing the locks on your new home for security purposes.