What Happens After You Go Under Contract?

Once a buyer and seller agree on terms, the home is officially under contract. This stage can feel uncertain if you do not know what comes next. Here is a clear breakdown of what typically happens after a contract is signed.

1. Earnest Money Is Deposited

The buyer submits earnest money to show good faith. This is usually held in escrow and later applied toward closing costs or the purchase price.

2. Home Inspection Period Begins

The buyer schedules a professional home inspection to identify any issues with the property.

Possible outcomes:

• Move forward as-is

• Request repairs or credits

• Renegotiate or, in some cases, cancel within the contingency period

3. Appraisal Is Ordered

The lender orders an appraisal to confirm the home’s value matches the purchase price.

If issues arise:

• The price may be renegotiated

• The buyer may cover the difference

• The deal may be restructured

4. Loan Underwriting and Final Approval

The buyer’s lender reviews financial documents and verifies all loan requirements.

Important:Buyers should avoid new debt or major financial changes during this time.

5. Title Search and Insurance

A title company confirms the property has clear ownership and prepares title insurance to protect both buyer and lender.

6. Final Walk-Through

The buyer completes a final walk-through shortly before closing to ensure the home is in the agreed condition.

7. Closing Day

Both parties sign final documents, funds are transferred, and ownership officially changes hands. The buyer receives the keys once recording is complete.

Final Thoughts

Going under contract is a major milestone, but it is not the finish line. Understanding each step helps buyers and sellers stay prepared and confident until closing day.