Making an offer on a home is an exciting moment for buyers, but it also marks the beginning of an important phase in the home buying process.
Once an offer is submitted and accepted, the transaction moves into what is commonly called the under contract period. During this time, several steps take place to confirm the condition of the property, finalize the buyer’s financing, and prepare for closing.
Understanding what happens after an offer is accepted can help buyers feel more confident and prepared throughout the process.
After a buyer submits an offer, the seller may accept the offer, reject it, or respond with a counteroffer.
When both the buyer and seller agree on the terms and sign the purchase contract, the property officially moves under contract.
The contract outlines several important details, including:
• the agreed purchase price
• the closing timeline
• financing terms
• contingencies such as inspections or appraisals
Once the contract is signed, both parties begin working through the steps required to complete the transaction.
After the contract is accepted, buyers typically provide earnest money.
Earnest money is a deposit that demonstrates the buyer’s commitment to purchasing the property. The amount varies depending on the price of the home and the terms of the agreement.
This deposit is usually held by a title company or escrow service until closing. At closing, the earnest money is typically applied toward the buyer’s closing costs or down payment.
Earnest money helps provide reassurance to the seller that the buyer intends to move forward with the purchase.
Most purchase contracts include an inspection period that allows buyers to evaluate the condition of the property.
During this stage, buyers often hire professional inspectors to examine the home’s systems and structural components.
Common inspection areas include:
• roof condition
• electrical systems
• plumbing systems
• heating and cooling systems
• structural components
The purpose of the inspection is to identify potential issues that may not be immediately visible during a showing.
If significant concerns are discovered, buyers and sellers may negotiate repairs, price adjustments, or concessions before moving forward.
If the buyer is obtaining a mortgage, the lender typically requires an appraisal of the property.
An appraisal is an independent evaluation of the home's value conducted by a licensed appraiser.
The lender uses the appraisal to confirm that the property's value supports the loan amount.
If the appraised value meets or exceeds the purchase price, the loan process can move forward normally.
If the appraisal comes in lower than the purchase price, the buyer and seller may need to renegotiate certain terms of the contract.
While inspections and appraisals are taking place, the buyer’s lender continues processing the mortgage application.
This stage involves verifying the buyer’s financial information and ensuring that the loan meets lending guidelines.
During underwriting, lenders may review:
• income documentation
• employment verification
• credit history
• bank statements
• asset verification
The lender’s goal is to confirm that the buyer qualifies for the loan before final approval is granted.
During the contract period, the title company conducts a title search to verify that the property has clear ownership and that there are no unresolved legal claims against it.
The title company also prepares the closing documents and coordinates the final steps required to transfer ownership.
This process ensures that the buyer receives clear title to the property when the transaction is completed.
Shortly before closing, buyers usually complete a final walkthrough of the property.
The purpose of the walkthrough is to confirm that:
• the property is in the expected condition
• any agreed-upon repairs have been completed
• the home is ready for transfer of ownership
This step helps ensure that there are no unexpected issues before the closing appointment.
Closing is the final stage of the home buying process.
At closing, the buyer signs the final loan documents and pays any remaining closing costs or down payment funds.
Once the documents are signed and the lender releases the loan funds, the transaction is recorded with the county.
At that point, ownership officially transfers to the buyer and the keys are delivered.
For many buyers, this is the moment when they officially become homeowners.
Making an offer on a home is only one step in the overall home buying process.
The period between contract acceptance and closing involves several important steps designed to confirm the property’s condition, finalize financing, and prepare for ownership transfer.
Understanding what happens during this stage can help buyers navigate the process with greater confidence and fewer surprises.
Todd McClean
Realtor® | Real Estate Investment Strategist
Utah Property Playbook
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