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The Home Closing Process Explained

A clear timeline of what happens after an accepted offer, including financing, inspection, appraisal, title, walkthrough, and closing.

After the offer is accepted

The signed contract creates deadlines for deposits, financing, inspections, disclosures, title review, association documents, appraisal, and closing. Put every deadline on a calendar and know who is responsible for each step.

Earnest money and escrow

Deliver the deposit to the authorized holder using verified instructions and preserve proof. Missing a deadline can create contractual consequences. Never rely on emailed wire instructions without independently confirming them through a known telephone number.

Inspection and property investigation

Schedule inspections promptly. Review the report, seller disclosures, permits where relevant, insurance history when available, flood and hazard information, association documents, leases, surveys, and other property-specific matters. Additional specialists may be needed.

Loan application and underwriting

Complete the application, supply documents, and respond quickly to conditions. The lender evaluates income, assets, credit, debts, property value, title, and insurance. Avoid financial changes that can affect approval. A preapproval is not a final commitment to lend.

Appraisal

The appraisal is primarily for the lender and is not a substitute for an inspection. When value is below the contract price, the options depend on the contract and may include renegotiation, additional cash, dispute or reconsideration procedures, or termination when permitted.

Title, survey, and association matters

The title process identifies ownership, liens, and recorded matters. A survey may reveal boundaries, encroachments, easements, or improvements. Condominium and homeowners’ association documents can impose dues, restrictions, approval procedures, and special assessments.

Homeowners insurance

Secure an acceptable policy before the lender’s deadline. Roof age, electrical systems, plumbing, prior claims, flood exposure, wind exposure, replacement cost, and deductibles can affect availability and price. An online estimate is not a bindable quote.

Closing Disclosure and final funds

Review the lender’s final disclosure and compare it with prior estimates. Confirm the interest rate, loan terms, monthly payment, credits, prorations, cash to close, and any reward disclosure. Ask questions before the signing appointment.

Final walkthrough

The walkthrough confirms condition, agreed repairs, included items, vacancy when required, and basic operation of systems. It is not a new inspection period unless the contract provides one, so report problems immediately.

Signing and disbursement

Bring approved identification and follow the settlement agent’s instructions. Ownership, possession, keys, recording, funding, and disbursement do not always occur at the same moment. Confirm when you may legally take possession.

After closing

Keep the signed documents, watch for the first mortgage statement, confirm tax and insurance information, update addresses, change locks and access codes, transfer utilities, and preserve warranties. An eligible Homebuyer Reward is processed only after successful closing and receipt of the underlying commission.

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