Buying or selling a home is an exciting milestone, and going under contract is a major step in the process. Understanding what happens next can help buyers and sellers navigate this period with confidence and clarity. Below is a detailed guide to what typically happens after a home goes under contract.

Key Steps After Going Under Contract

• Earnest Money Deposit:
  
  
• The buyer provides a deposit to show seriousness.
  
  
• This money is typically held in escrow and applied toward the purchase price at closing.
  
  
• If the buyer fails to meet contract obligations, they may risk losing this deposit unless contingencies are in place.
  
  
• Home Inspection:
  
  
• A licensed inspector evaluates the property for structural issues, safety concerns, and needed repairs.
  
  
• Common issues include roof damage, plumbing problems, electrical concerns, or foundation cracks.
  
  
• After the inspection, buyers can request repairs, negotiate credits, or, in some cases, cancel the contract if serious problems are discovered.
  
  
• Appraisal:
  
  
• Required by the lender to ensure the property’s value matches the contract price.
  
  
• If the appraisal comes in lower than expected, the buyer may need to increase the down payment or renegotiate the price with the seller.
  
  
• A strong appraisal protects both the lender and buyer from overpaying for the home.
  
  
• Securing Financing:
  
  
• Buyers work closely with their lender to finalize their mortgage.
  
  
• This involves providing financial documentation, reviewing loan terms, and obtaining final loan approval.
  
  
• Buyers should avoid taking on new debt or making large purchases during this period, as it can impact loan approval.
  
  
• Title Search and Insurance:
  
  
• The title company conducts a title search to ensure there are no liens, claims, or legal issues on the property.
  
  
• Title insurance protects the buyer and lender in case any disputes arise regarding ownership.
  
  
• Sellers may also need to clear any outstanding debts tied to the property before closing.
  
  
• Contingency Removal:
  
  
• Contracts often include contingencies such as financing, inspections, and appraisal.
  
  
• Once these contingencies are satisfied or waived, the transaction moves closer to closing.
  
  
• Buyers and sellers should communicate promptly with their agent to ensure all contingencies are addressed on time.
  
  
• Preparing for Closing:
  
  
• Both parties review final paperwork, disclosures, and financial requirements.
  
  
• The buyer schedules a final walkthrough to verify the property’s condition.
  
  
• The seller prepares to transfer keys, vacate the property, and ensure all agreed-upon repairs are completed.
  
  
• Closing Day:
  
  
• The buyer signs the mortgage documents, and the seller signs the deed.
  
  
• Funds are transferred, including the mortgage, down payment, and closing costs.
  
  
• Once all documents are recorded with the local county, the buyer officially becomes the new owner.
  
  
• Keys and property access are handed over to the buyer, completing the transaction.
  
  

Additional Tips for a Smooth Process

• Stay in Communication: Keep open lines with your agent, lender, and attorney to avoid misunderstandings.
  
  
• Respond Promptly: Quick responses to requests for documents or approvals help prevent delays.
  
  
• Stay Organized: Keep a dedicated folder for all contracts, inspections, and loan paperwork.
  
  
• Prepare Financially: Be ready for closing costs, down payments, and moving expenses.
  
  
• Plan for Moving: Schedule movers and utilities in advance to ensure a smooth transition.
  
  
• Maintain Flexibility: Unexpected issues can arise, such as repair negotiations or lender delays—stay flexible and patient.
  
  

Why Understanding This Process Matters

Going under contract is a major milestone, but it’s just one step in the home-buying or selling journey. Knowing what comes next reduces stress, ensures no critical steps are missed, and helps both buyers and sellers feel confident as they move toward closing.

By staying informed, organized, and proactive, you can navigate the process efficiently and enjoy a smooth transition into your new home.