The Homebuying Process, From Offer to Closing

Making an Offer

Once you've found a home you want to buy, the process formally begins with a written purchase offer. This document — usually prepared by your real estate agent — specifies the price you're willing to pay, your proposed closing date, and any contingencies (conditions that must be met for the sale to proceed). Common contingencies include financing, inspection, and appraisal clauses.

The seller can accept, reject, or counter your offer. Negotiations may go through several rounds. If you're new to this stage, our first-time buyer guide covers the full journey in accessible terms. When both parties agree on all terms, the offer becomes a binding purchase agreement.

Along with your offer, you'll typically submit earnest money — a good-faith deposit (often 1–3% of the purchase price) held in escrow until closing. If the deal falls through due to a covered contingency, this deposit is generally refunded. Learn what earnest money, escrow, and closing costs mean in plain English.

Under Contract: What Happens Next

Once you're under contract, the clock starts on a series of deadlines. Your agent will provide a timeline showing when each contingency must be resolved. This phase typically spans 30–60 days, depending on your market and loan type.

Key tasks during this window include scheduling your home inspection, locking in your mortgage rate with your lender, and providing any additional documentation your lender requests for underwriting. Review the pre-contract checklist to confirm you've addressed every critical item before your contingency deadlines expire.

Avoid major financial moves during this period — opening new credit accounts, changing jobs, or making large purchases can disrupt your mortgage approval.

The Home Inspection

A licensed home inspector will examine the property's major systems and structure: roof, foundation, electrical, plumbing, HVAC, and more. The inspection typically takes two to four hours, and buyers are strongly encouraged to attend. You'll receive a written report detailing any deficiencies found.

After reviewing the inspection report, you have options: accept the home as-is, request repairs, ask for a price reduction, or — in some cases — walk away if problems are serious enough and your inspection contingency is in place. Common mistakes during this stage include waiving contingencies without fully understanding the risks.

The Appraisal and Mortgage Underwriting

Your lender will order an independent appraisal — a professional assessment of the home's market value. Lenders won't loan more than the appraised value, so if the appraisal comes in low, you may need to renegotiate the price, pay the difference in cash, or, if your contract allows, exit the deal.

Simultaneously, an underwriter reviews your full financial profile: credit history, income verification, debt-to-income ratio, and asset documentation. Underwriting is thorough and sometimes requests additional paperwork. Respond quickly to any requests — delays here push back your closing date.

Once underwriting is complete and all conditions are satisfied, you'll receive a Clear to Close — the lender's formal approval to proceed. At this point, your closing date is confirmed.

Preparing for Closing Day

In the days before closing, your lender will send a Closing Disclosure, a document you're legally entitled to receive at least three business days before signing. It itemizes your loan terms, monthly payment, and all closing costs. Review it carefully and compare it to your earlier Loan Estimate — flag any discrepancies with your lender immediately.

You'll need to arrange a wire transfer or cashier's check for your closing costs and down payment. Closing costs generally range from 2–5% of the loan amount and cover lender fees, title insurance, prepaid taxes and insurance, and other charges. For unfamiliar terms in this disclosure, our homeownership glossary offers plain-English definitions.

Conduct your final walk-through — typically within 24 hours of closing — to confirm the property's condition is consistent with your agreement and that any negotiated repairs were completed.

Closing Day: Signing and Taking Ownership

At closing, you'll sign a stack of documents transferring ownership and finalizing your mortgage. This typically occurs at a title company, escrow office, or attorney's office, depending on your state. Bring a government-issued photo ID and any remaining documentation your closing agent requested.

You'll sign the deed of trust (or mortgage), the promissory note, the Closing Disclosure, and several other legal documents. Your closing agent will walk you through each one — take the time to read what you're signing, and don't hesitate to ask questions.

Once all documents are executed and funds are disbursed, the deed is recorded with your local government. At that point, you legally own the home and receive the keys. The entire closing appointment typically takes one to two hours.

This article is for general informational and educational purposes only. It does not constitute legal, financial, or real estate advice. Readers should consult qualified professionals — including a licensed real estate agent, attorney, and financial adviser — for guidance specific to their circumstances and location.