Going Under Contract: What Changes Immediately
When the seller accepts your offer, you are no longer just a buyer — you are a buyer under contract. Your earnest money goes into escrow. Your right to walk away depends on your contingencies. Your lender springs into action. Everything accelerates. Understanding what happens immediately is critical because you have only days to make critical decisions.
Immediate Actions After Acceptance
- Call your lender same day: Lock in your interest rate and submit formal loan application
- Schedule home inspection within 24 hours: You have 7-10 days to complete and decide
- Contact title company within 24 hours: They initiate the title search (takes 7-10 days)
- Order homeowner's insurance quotes within 24 hours: Lender requires proof before closing
- Confirm closing date within 24-48 hours: Coordinate with agent and lender
The Home Inspection: Finding Out What You Are Really Buying
A professional inspector spends 2-4 hours examining every visible system in the home and provides a detailed report. The cost is $300-600, which is negligible compared to discovering a $30,000 problem after closing. Inspectors examine the roof, foundation, HVAC systems, electrical, plumbing, attic and insulation, basement and crawlspace, and windows and doors.
Your Three Options After Inspection
Option 1: Accept the Home As-Is
You are satisfied with the results (even if minor issues exist) and proceed without requesting repairs. Choose this when inspection found no major issues or only cosmetic problems. This signals strength to the seller and speeds up closing.
Option 2: Request Repairs or Credits
Inspection found significant issues ($5,000-15,000+) that need immediate attention. You submit a repair request listing specific items. Seller can accept all repairs, accept some, offer credit instead, refuse all, or counter with different terms. Offering to accept a credit and handle repairs yourself is often more acceptable to sellers.
Option 3: Walk Away
Inspection revealed catastrophic issues: major foundation damage, mold, severe water damage, or structural problems. You invoke your inspection contingency and cancel the contract. Your earnest money is returned. Walking away is tough emotionally, but a bad inspection can save you from financial disaster.
Your inspection contingency typically expires 7-10 days after acceptance. If you do not make a decision by that deadline, your contingency rights disappear. Mark this deadline in your calendar and stay on track.
The Appraisal: Making Sure You Are Not Overpaying
Your lender orders an appraisal by a licensed professional who determines the property's market value. The appraisal typically takes 7-10 days and costs $400-600. If the appraisal comes in low, your lender will not lend more than the appraised value.
Options When Appraisal Comes In Low
If you offered $350,000 but the appraisal comes in at $335,000, you have three choices: renegotiate the price down (your appraisal contingency protects you here), bring more cash to closing to cover the difference, or walk away to avoid overpaying.
Never waive your appraisal contingency. Even in hot markets where sellers ask you to. If the home appraises low and you waived the contingency, you are obligated to close at full price or face default and loss of earnest money. This contingency is your only protection against overpaying.
Title Search and Insurance
The title company searches ownership history going back decades to ensure the seller actually owns the property free and clear. They check for liens, easements, covenants and restrictions, encroachments, and ownership history. Title insurance protects you from defects discovered after closing and costs $500-1,500 one-time at closing.
Underwriting: Your Lender's Final Review
While inspection, appraisal, and title search happen, your lender's underwriter reviews your full application — credit report, income verification, debt ratios, down payment source, bank statements, employment history, and the appraisal. Be responsive to underwriter requests, as delays in documentation can delay closing.
The Path to Clear to Close
Once all contingencies are satisfied — inspection accepted, appraisal acceptable, title clear, underwriting approved — you receive Clear to Close status. This means all conditions are met and closing typically happens 2-3 days later.
