From Contract to Closing: What Really Happens After Your Offer Is Accepted

From Contract To Closing,
What Really Happens After Your Offer Is Accepted

If you are thinking about buying or selling a home, you have probably heard the phrase under contract and wondered what actually happens between that moment and the day you get the keys.

For a lot of people, this part of the process feels like it happens behind closed doors. There are deadlines, documents, inspections, and phone calls you never see. As a real estate agent in the Philadelphia area, my job is to make sure you do not have to stress over every detail, but I also want you to understand what is going on and where things can go wrong.

So let me walk you through what the typical journey looks like from contract to closing, from my side of the table and from yours.

When Are You Officially Under Contract

This is a big point of confusion, so let us start here.

You are officially under contract the moment both parties sign the agreement of sale.

Not when you drop off your earnest money.
Not when you schedule inspections.
Not when you talk to the lender again.

The second the seller signs your offer, the clock starts. That is day one.

A lot of buyers think they are not really locked in until they hand over their deposit. That is not true. The deposit is the next step in honoring the agreement you already made.

Step One, Your Earnest Money Deposit

Once you are under contract, one of the first deadlines you will see is the earnest money deposit.

In our market, buyers usually have about two to seven days to deliver that money, depending on what is written in the contract. It is a good faith deposit that shows the seller you are serious about buying the home.

That amount will be discussed with your agent before the offer. Sometimes it is ten thousand, twenty thousand, or even more if you are in a competitive situation and want to stand out.

How do you actually pay it

Different brokerages handle this differently

• Some require a certified bank check

• Some allow a regular check

• Some use secure apps to transfer funds

• Some allow wires through a secure portal

One big warning, wire fraud is very real. You should never trust wiring instructions sent in a random email. My brokerage uses a secure portal or we give instructions over the phone, never in a plain email.

The Inspection Period, What Really Happens

If you elected inspections in your contract, you will typically have around ten days to schedule them, complete them, receive the reports, and respond in writing.

In our area, the most common inspections I see are

• General home inspection, roof, structure, mechanicals, major systems

• Wood destroying insect or termite inspection, often required for VA loans

• Radon test, our area tends to test high so many buyers opt for this

• Septic inspection, if the home has a septic system I always recommend this

• Well and water test, to make sure the water is safe to drink

Most inspectors I work with get the report back within a day or two. Certain tests, like mold or water, can take a little longer.

All of these inspections are paid out of pocket by you as the buyer. They are not part of your closing costs. You should be prepared to pay for them shortly after going under contract. And if you decide to walk away because of something you find during inspections, that money is not refunded. You are paying for information so you can make the best long term decision, even if that decision is to walk away.

How We Handle Inspection Repairs And Credits

Here is something I tell every buyer right away. No house has a perfect inspection.

The report is not pass or fail. It is an opinion from a professional about what needs attention.

What I help you think through is

• What is truly a safety or structural concern

• What is necessary for you to be able to live in the home comfortably

• What is cosmetic or something we already knew going in

For example, if we knew the heater was forty years old because it was in the seller disclosure and we could clearly see it, that is something we factor into the offer before we write it. It is not something we usually ask for later just because the inspector repeated it.

On the other hand, if we thought everything was working and the inspector discovers there is no heat, or the central air does not work, or there is a significant structural issue, or possible mold, those are serious conversations.

From there we can

• Ask the seller to repair specific items before closing

• Request a price reduction so you can address repairs after closing

• Ask for a seller assist toward closing costs so you can free up cash to make repairs

In some cases, if the seller does not have the cash to make a large repair before closing, we can negotiate money to be held in escrow after closing. The seller puts part of their proceeds aside, and that money is used to complete the repair once you own the home.

The key is, everything must be in writing and within the deadlines in the contract.

Title, Mortgage, And Those Annoying Documents

Once you are under contract, there is a lot happening behind the scenes.

Title insurance
Title insurance is required by your lender. It protects you and the bank and ensures you are buying a property that is free and clear of judgments and liens.

If there are unpaid taxes, child support judgments, large IRS debts, or other liens tied to the seller or sometimes to the property, they will come up here. Most of the time, the seller already knows about these and they are paid off at closing. In rare cases, if the seller cannot clear the title, the deal can fall apart.

Your mortgage application
When we wrote your offer, you were pre approved. Once your offer is accepted, you need to complete the full mortgage application. Most contracts give about seven days to get that done.

This part can feel frustrating. The lender will ask for pay stubs, tax returns, bank statements, employment verifications, and sometimes the same thing more than once. I always remind my clients, the lender is not trying to harass you, they are trying to get your loan approved and keep it compliant.

If you are self employed or hourly, expect a little extra paperwork. My job here is to help you stay calm and stay organized.

Township Requirements, Use And Occupancy

If you are buying or selling in a township that requires a use and occupancy certificate, that is another important piece.

From the seller side, the township application is usually filled out by our conveyancing team. Some townships require an in person inspection. The township inspector might check

• Smoke detectors

• Handrails

• GFCI outlets near water sources

• Basic safety items

Anything they flag typically becomes the seller’s responsibility to fix before closing. Once everything passes, the township issues a certificate so you can legally occupy the home.

Condos, HOAs, And Your Right To Review Documents

If the property is part of a homeowners association or condo association, the seller or listing agent is responsible for ordering the association documents within a set period, usually about fifteen days from contract.

Once those documents are delivered, you as the buyer typically have five days to review them. If you discover something that is a deal breaker, such as

• Extremely high fees

• A financially unstable association

• Rules that do not work for your lifestyle, for example strict pet rules

you have the right to terminate within that review window. Again, timing is everything.

Contingencies, Your Safety Nets

Every contract is built around contingencies. These are your if this happens, then I can walk away safely protections.

Common contingencies include

• Home and specialty inspections

• Ability to obtain a mortgage

• Appraisal meeting or supporting the purchase price

• Township approvals and clear title

• Association document review

If you waive a contingency, you are also waiving that safety net. I tell my buyers over and over, you need to fully understand what you are electing and what you are waiving. The story of a buyer who did not realize they had waived inspections and was waiting for an inspection that was never going to happen is exactly what I work very hard to prevent.

Appraisal, What If The Home Does Not Appraise

If you are using a mortgage, the lender will order an appraisal. They want to confirm the home is worth what you are paying and what they are lending.

If the appraisal comes in low, there are a few options

• You can try to renegotiate the price with the seller

• You can meet somewhere in the middle with a combination of price change and cash

• You can bring additional cash to cover the difference if you are able and willing

• If you elected the appraisal contingency and cannot reach an agreement, you can terminate

In very competitive markets, some buyers choose to waive or partially waive their appraisal protection by agreeing up front to cover a certain shortfall. Again, that is a serious decision and something we talk about in detail before we ever write it into a contract.

Homeowners Insurance, Do Not Just Pick The Cheapest

During this process, you will also be shopping for homeowners insurance.

I always recommend getting quotes from at least three providers. A bundled option with your current auto insurance, the preferred company your brokerage recommends, and at least one more.

Do not just look at the monthly payment. Pay attention to

• Rebuild cost coverage

• Deductibles

• What is and is not covered

If your house were to burn to the ground, you want to be confident the policy you chose can actually rebuild it.

From Under Contract To Pending

You might notice that listings often go from under contract to pending.

Under contract means there are still contingencies in place. Inspections, appraisal, mortgage, township approvals, association review, and so on.

Pending usually means all contingencies have been satisfied and the file is simply waiting for closing. At that point, everything should be ready to go, although lending can fall apart even very close to closing if someone loses a job, buys a new car, racks up debt, or opens new credit.

This is why I always tell my clients, do not make any big financial moves until after you close.

Final Walkthrough, Your Last Check Before Closing

I prefer to do the final walkthrough the evening before closing when possible. That gives us a little time to respond if we find something unexpected.

During the walkthrough we

• Check that all agreed upon repairs are done

• Make sure everything is out of the house except what is supposed to stay

• Turn on lights, test major appliances, run water, flush toilets

• Test heat and air conditioning if weather allows

• Look for any new leaks or damage that was not present before

Sometimes things come up at the last minute. A dishwasher stops working. A seller leaves a basement full of old paint cans. In those cases, we document the issue and negotiate a solution, which might be money held in escrow or a credit at closing. The key is to address it before you sign.

From the seller side, I always tell my clients, leave the home the way you would hope to find it. The legal requirement in our area is broom swept with no personal items. It is not required, but it is a very nice gesture when a seller has the home professionally cleaned before closing.

Closing Day, What To Expect At The Table

On closing day, if you are the buyer you should bring

• Two forms of identification, usually a driver license and a passport or similar

• Any certified checks, if required, although most funds are wired

• A hand that is ready to sign a lot of paperwork

Some lenders allow you to sign part of the package electronically before closing, which can make the actual appointment a bit shorter.

By this point, your lender should have given you a final closing disclosure three or four days earlier so there are no surprises. I like my buyers to see a good estimate well before that, so they have a realistic picture of their monthly payment and cash to close.

If you are the seller, you may not even need to attend closing. Many of my sellers sign a deed packet in advance with a notary and let me attend on their behalf. Then their proceeds are wired or a check is issued after funding.

The Biggest Mistakes I See Buyers Make

The mistakes I see are rarely about intention. They are usually about understanding.

Some of the biggest ones are

• Not understanding what they waived in the contract, especially inspections

• Not seeing a realistic cost to close worksheet before writing an offer

• Assuming they can walk away simply because the payment is higher than they hoped

• Not respecting the timelines for inspections, responses, and contingencies

If your lender does not provide clear worksheets, I either encourage you to use one who does or I create a conservative estimate myself so you are not shocked later. You should never be guessing at your payment or your closing costs.

Why Choosing The Right Agent And Team Matters

In Pennsylvania, we are a non attorney review state, which means your real estate agent is managing this process from contract to close, not an attorney.

That means the person you choose matters. You want someone who

• Understands the contract in detail

• Is organized and on top of every deadline

• Communicates clearly and regularly

• Has a strong team and brokerage behind them

If your agent shows up late with no communication, ignores dates, or is sloppy with paperwork, that can absolutely cost you money, protections, or even the home.

My goal is for you to feel informed enough to ask good questions, but supported enough that you do not have to carry the stress. When you work with me, you are not just hiring a person, you are hiring a full team that is watching dates, coordinating with lenders, title, inspectors, and townships, and doing everything we can to get you to the closing table smoothly.

Ready To Talk About Your Next Move

If you are thinking about buying or selling, or you are already under contract and feel unsure about what comes next, I am here to help.

This process does not have to be scary or confusing. With the right guidance, clear communication, and a solid plan, contract to closing can actually feel manageable, even exciting.

When you are ready for a conversation about your next step, you can always reach out to me directly through my website or social channels.

I would love to help you keep it real about real estate and get you home.