{"id":6361,"date":"2025-03-03T21:44:06","date_gmt":"2025-03-04T02:44:06","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=6361"},"modified":"2025-03-03T21:44:09","modified_gmt":"2025-03-04T02:44:09","slug":"between-signing-my-purchase-agreement-and-closing-whats-going-on","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/between-signing-my-purchase-agreement-and-closing-whats-going-on\/","title":{"rendered":"Between Signing My Purchase Agreement and Closing: What\u2019s Going On?"},"content":{"rendered":"\n
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What goes on between the day you find your seller and the day the seller hands you the keys? If you\u2019re new to home buying, you\u2019ll be curious about each step. And if you haven\u2019t closed on a home in a long time, you might want a refresher.  <\/p>\n\n\n\n

Once you sign the agreement, a predictable series of events awaits you. While this series is different from place to place, there are a number of usual steps.<\/p>\n\n\n\n

Let\u2019s preview the journey, so you know just what to anticipate at every significant turn.<\/p>\n\n\n\n\n\n\n\n

The Seller Has Agreed: I\u2019m the Buyer. What\u2019s Next?<\/h2>\n\n\n\n

Signing the agreement just opens the most exciting part of the journey. Now is when the professionals get to work on a timeline. It can take a month to 45 days to get to closing on your new mortgage. These steps are why:<\/p>\n\n\n\n

Deposit Your Earnest Money.<\/h2>\n\n\n\n
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Once you have signed a purchase agreement, your mortgage consultant will guide you through the financial steps. You\u2019ll get an escrow account. You\u2019ll use it for your payment to the seller. Funds will be released as you and the seller meet all of the agreement\u2019s terms.<\/p>\n\n\n\n

Typically, a buyer puts earnest money into the account so the seller knows the buyer is serious about closing. At closing, escrow money funds the down payment and other costs.<\/p>\n\n\n\n

Get specific information from your agent about what other payments you\u2019ll need to make, and what payment forms will be acceptable at closing.<\/p>\n\n\n\n

Order the Appraisal.<\/h2>\n\n\n\n

You (or your mortgage consultant on your behalf) now must order an appraisal. It\u2019s just one of the services you\u2019ll pay for on closing day.<\/p>\n\n\n\n

An appraiser\u2019s task is to come up with an unbiased and fair<\/a> figure for the home you\u2019re buying. It assures you and your lender that you\u2019re paying fair market value for your home (and what fair market value actually is). Local governments rely on the appraiser\u2019s valuation to set their property tax charges.<\/p>\n\n\n\n

Because appraisals are so important, you might have agreed to buy the home contingent on the appraisal coming in at the price you decided to pay. (For most buyers, it does.)<\/p>\n\n\n\n

Paying in cash? You still may make your offer <\/strong><\/em>contingent<\/em><\/strong><\/a> on an appraiser\u2019s confirmation of the property value. \u00a0<\/strong><\/em><\/p>\n\n\n\n

Attend the Home Inspection.<\/h2>\n\n\n\n

Once you have a signed contract, you (or your agent) will make an appointment with a home inspector.  You can make closing on the home contingent on a good inspection report.<\/p>\n\n\n\n

If the inspector finds a serious problem during the inspection, now\u2019s the time for your agent to negotiate with the seller to complete the repairs for the sale to go through. Your agent, speaking on your behalf, can ask that the seller for repairs, or request a price discount.<\/p>\n\n\n\n

The typical purchase agreement lets a buyer walk away if serious problems show up and the seller won\u2019t make them right.<\/p>\n\n\n\n

Order the Title Search.<\/h2>\n\n\n\n

You\u2019ll pay for the lender\u2019s title insurance. Before producing a policy, a title company must check to see that the title is clear. Title agents sift through records pertaining to a given property.<\/p>\n\n\n\n

If the title search shows clouds on the title, the title company works in the background to resolve the discovered claims.<\/p>\n\n\n\n

What about a title insurance policy for yourself, not just your lender? Optional owner\u2019s title insurance protects you against unseen <\/strong><\/em>risks to your ownership rights<\/em><\/strong><\/a> for so long as you hold the deed.<\/strong><\/em><\/p>\n\n\n\n

Get Through the Loan Underwriting.<\/h2>\n\n\n\n

If you\u2019re like most buyers, you\u2019ve applied for a loan. We\u2019ll assume here that you\u2019ve gone through the process and received pre-approval. Optimally, you have a supportive mortgage specialist as your guide.<\/p>\n\n\n\n

Now that you\u2019ve signed an agreement, is the loan pre-approval still good for the home you\u2019ve picked out?<\/p>\n\n\n\n

At this point, the lender revisits your loan application. The lender must verify your financial details, double-check your employment status, and assess the chosen property\u2019s value. The lender wants to be confident that its collateral (your new property) is a sound investment.<\/p>\n\n\n\n

Take Your Final Walkthrough.<\/h2>\n\n\n\n

Assuming the underwriter decides you and the home are good to go, you\u2019ll hear just before closing that the loan is approved. But wait! Don\u2019t skip the final walkthrough.<\/p>\n\n\n\n

A final walkthrough is one last tour of the property before closing, to confirm everything is as it\u2019s supposed to be. It\u2019s a buyer\u2019s last chance to get fixes or discounts for necessary repairs.<\/p>\n\n\n\n

Attend Your Closing.<\/h2>\n\n\n\n

Big day ahead at your agent\u2019s or the settlement agent\u2019s office! It won\u2019t take long (maybe under an hour) but expect to sign plenty of documents before finally receiving your new set of keys. At closing, funds will be released from escrow. You and your agent will attend, and your seller will be there or have a representative there. Once you sit down at the table, here\u2019s what happens:<\/p>\n\n\n\n