You're Under Contract. Now What?

Congratulations. Getting the offer accepted is one of the best moments in the process. Now the next phase begins. Over the next few weeks you will hear from your lender, your agent, title, insurance, and possibly the appraiser and inspector. Documents, deadlines, questions. That is all normal. Here is what to expect.

Step 1: pay attention to the deadlines

Take a moment and celebrate. Then look at the contract. You will likely have deadlines for earnest money, inspection, financing, appraisal, and closing. Missing one creates problems that did not need to exist. Your agent and lender will help. Respond quickly when they reach out.

Step 2: the loan moves into processing

Now there is a property attached to the loan. A processor reviews everything before underwriting. This is when you will probably get requests for updated documents. Buyers say, "I already sent my pay stubs." You probably did. If they are a few weeks old, underwriting needs current ones. Same with bank statements. Nothing is wrong. The documents have to be current. The faster you return them, the smoother the file moves.

Step 3: underwriting reviews the loan

Underwriting is another set of experienced eyes. Their job is to verify the file meets guidelines before final approval. Almost every loan receives conditions. That does not mean there is a problem. It usually means one more document, an updated statement, or a clarification. One of the biggest mistakes buyers make is assuming conditions mean they are about to be denied. Conditions are how the loan gets approved.

Step 4: the home inspection

The inspection is not required by your lender. It is for you. The inspector looks for issues that may not be obvious during a showing. Sometimes the report is clean. Sometimes it identifies repairs you can negotiate. Your agent helps you decide whether to request repairs, ask for a credit, accept as-is, or in rare cases walk. Use it to make an informed decision.

Step 5: the appraisal

Your lender orders an appraisal to confirm the value supports the loan. Three outcomes: at or above purchase price, the loan keeps moving. Exactly at price, also fine. Below contract, do not panic. Options can include renegotiating, bringing the difference, or reviewing the appraisal if something looks off. Your lender and agent will walk you through it.

Step 6: shop for homeowners insurance early

Waiting until the last minute is one of the easiest ways to delay a closing. Start quotes as soon as you are under contract. The lender needs proof of insurance before closing.

Step 7: keep everything financially the same

This is the most important thing I can tell you. Do not make major financial changes before closing.

• No new credit cards.
• No financing furniture or appliances.
• No buying a vehicle.
• No job changes without talking to your lender.
• No large unexplained deposits.
• No missed payments.

Step 8: stay in communication

You will hear from your lender more than you expected. That is a good thing. Every request has a purpose. Quick responses save days.

Step 9 and 10: Clear to Close, then keys

Once underwriting signs off and conditions are satisfied, you get Clear to Close. Closing documents are prepared. You receive the Closing Disclosure. The appointment can be finalized.

Closing day is usually easier than buyers expect. You review and sign, bring remaining funds, and once it funds you get the keys. Questions along the way? Call or text (615) 955-0461.