From “Under Contract” to “Closing”: A Simple Timeline
For many buyers and sellers, the moment a home goes under contract feels like the finish line. In reality, it’s the beginning of a crucial process that happens behind the scenes before the keys can officially change hands. Understanding what happens between “under contract” and “closing” can help reduce stress, set realistic expectations, and prevent costly surprises.
Below is a simple, step-by-step timeline of what typically takes place during this period.
Step 1: Option Period & Inspections (Days 1–7, varies by contract)
Shortly after a contract is signed, the buyer usually enters an option period. This is the time when the buyer can inspect the property and decide whether to move forward, renegotiate, or terminate the contract.
During this phase:
A home inspection is scheduled
Additional inspections (foundation, HVAC, roof, termite) may be ordered
The buyer may request repairs or credits based on findings
This step is about due diligence. It allows the buyer to understand the true condition of the home before fully committing.
Step 2: Negotiations & Repairs (Often overlaps with inspections)
If issues are found, the buyer and seller negotiate next steps. This may include:
Seller repairs before closing
A credit or price reduction
No changes, with the buyer accepting the home as-is
Once both sides agree and sign off, the contract moves forward.
Step 3: Appraisal Ordered by the Lender (Around Days 7–14)
If the buyer is using financing, the lender will order an appraisal to confirm the home’s value supports the loan amount.
Possible outcomes:
Appraised at value: the deal continues as planned
Appraised higher: good news, no action needed
Appraised lower: negotiations may reopen or the buyer may need to bring additional funds
This step protects the lender—and indirectly, the buyer—from overpaying.
Step 4: Loan Processing & Underwriting (Ongoing)
While inspections and appraisal are happening, the buyer’s lender is working in the background.
This includes:
Verifying income, assets, and credit
Reviewing documents and bank statements
Clearing conditions requested by underwriting
Buyers should avoid major financial changes during this time, such as switching jobs, opening new credit lines, or making large purchases.
Step 5: Title Work & Insurance (Parallel process)
The title company conducts a title search to ensure:
The seller has clear ownership
There are no unresolved liens or legal issues
At the same time:
Title insurance is prepared
Buyers arrange homeowners insurance
Utility transfer planning may begin
This step ensures the property can legally and smoothly transfer to the new owner.
Step 6: Final Walkthrough (Usually 1–3 days before closing)
Before closing, the buyer completes a final walkthrough to confirm:
The home is in the agreed-upon condition
Repairs (if any) were completed
The property is vacant or ready as promised
This is not another inspection, but a final check for peace of mind.
Step 7: Closing Day
On closing day:
Documents are signed
Funds are transferred
The transaction is officially recorded
Keys are released
Once recording is confirmed, the buyer becomes the legal owner of the home.
Why This Timeline Matters
Knowing what happens between under contract and closing helps clients:
Stay prepared and responsive
Understand delays when they happen
Feel confident instead of anxious
Real estate transactions involve many moving parts, but with the right guidance, the process doesn’t have to feel overwhelming.
