What To Know While Under Contract On Your Home Purchase

Congratulations! You have just found the home you have been looking for! Maybe it took you months of stopping into Open Houses, private tours with your agent, or even searching through pages of homes online- but here you are, ready for the next step.

You have worked with your agent to write up an offer, and both you and the seller have agreed on the terms and now have a signed contract.

At this point, everyone is thrilled! Your dream of becoming a homeowner is on it's way of becoming a reality. You may be feeling a mix of emotions, and that's Okay- Buying a home is a large purchase, it can be scary if you are unsure of what to expect.

If you’re ready to proceed, here’s what you can expect after signing the real estate contract.

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You Just Signed A Real Estate Contract.. Now What?

Your Escrow Deposit:

  • This money can vary depending on the home purchase price. These funds are considered your "good faith" deposit to ensure you have good intent to purchase the home and are typically held in a third party account such as with the title company. 
  • You will want to check your contract date, as most of the time your escrow deposit is due within 3-5 business days after your contract has been signed. 

Your Mortgage Broker:

  • Prior to starting your home search, you most likely already went through the pre-approval process with your lender. Now that you are officially Under Contract, you will want to get in touch with them regarding the current interest rates, and even "locking" in your rate.
  • Your bank will allow you to "lock" in your rate for a certain period of time, which is typically 30-90 days depending on your contract. Your interest rate can update daily, which is why this is an important step to talk with your lender about. 
  • ​Next, your bank will order the property appraisal. This is done typically right away, as it can take a week or longer to set the appointment and then takes about a week for the appraisal to be submitted back to your lender.  
  • During the first few days after signing your contract, you will be in touch with your lender quite often. They will be requesting updated documents from you to get your loan underway. Remember that is it very important to get your lender the docs requested as soon as possible as to not delay your loan processing. 

Your Home Inspection:

  • Getting through your property inspection is likely the last important task on your list. 
  • You will most likely choose to be present at your inspection. Now is the time when you will want to ask any questions that you have about the home such as, the air conditioning and heating unit's life expectancy. 
  • Your Inspectors job is to check out the property from top to bottom. They will point out all of the major systems and how they work, and help you to locate the emergency shut off. They will also identify any issues they find, and any long term maintenance issues you may be facing. 
  • The main purpose of the Inspection is to familiarize yourself with the home, and all of its systems and components. 

Many people make the assumption that time stops when the signatures hit the contract, but really that is only the beginning. Use your time wisely- Ask your Agent, Lender, Attorney, and Inspector any questions that are weighing on your mind. Stay in contact with your Agent and your Lender weekly if not sooner to be sure all tasks are being completed, and you are not needing to complete anything for them. 

A home purchase can be alot to go through on top of your daily work, home, and life responsibilities. Be sure to take time to take care of yourself during this time- and prepare for your new life in your new home.


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Information provided in this post is for your information only.