Between Contract & Closing

You found the house.

Your offer was accepted.

You’re officially under contract.

Celebrate a little.

Then please don’t go finance the furniture.

The time between contract and closing is when a lot of the mortgage process happens behind the scenes. Your lender, real estate agent, title professionals, appraiser, insurance provider, and others may all be working toward the same date on your contract:

Closing Day.

Here’s what to expect — and a few important ways you can help keep everything moving.

First: Let Your Lender Know You’re Under Contract

Once you have an accepted contract, it’s go time.

We’ll update your loan with the property information, review your financing based on the actual purchase, provide required disclosures, and begin working through the remaining steps needed to get your loan to closing.

This is also when you’ll make some decisions about your mortgage, including discussing your interest rate and whether or when to lock it.

From here, communication becomes especially important.

The Home Inspection

Depending on your contract and situation, you may choose to have a home inspection.

An inspector can help you better understand the condition of the home — things like the roof, HVAC, plumbing, electrical systems, appliances, and other components of the property.

Your real estate agent can help you understand your inspection period and any decisions or negotiations that may follow.

One important distinction:

The inspection and the appraisal aren’t the same thing.

An inspection is primarily for you.

The appraisal is part of the loan process.

The Appraisal

Your lender will generally order an appraisal when one is required for your loan.

The appraiser provides an independent opinion of the property’s value and may also identify property-related items that need to be addressed depending on the type of financing you’re using.

Once the appraisal is complete, we’ll review it as part of the loan process and let you know if there’s anything we need to address.

Underwriting

While all of this is happening, your loan is moving through underwriting.

Think of underwriting as the verification stage.

The underwriter reviews your loan to make sure it meets the requirements of the applicable mortgage program.

They may review your income, employment, credit, assets, debts, property information, appraisal, and other documentation associated with your loan.

And sometimes they’ll ask for more information.

That’s normal.

A request for another document doesn’t necessarily mean something is wrong. Sometimes we simply need additional documentation or clarification to satisfy a loan requirement.

This is where you can help us tremendously:

Respond to document requests as quickly as you can.

If we ask for an updated paystub, bank statement, explanation, insurance information, or another document, getting it back quickly helps us keep your loan moving toward the closing date.

Your contract has a timeline.

Your mortgage does too.

Meanwhile, Keep Your Finances Boring.

This might be one of the most important pieces of advice I can give you between contract and closing:

Don’t make major financial changes without talking to your lender first.

Your loan was qualified based on a particular financial picture.

We want that picture to stay as consistent as possible until you’ve closed.

That means this is probably not the time to:

• Open new credit. That new credit card can wait.
• Finance a vehicle. Even if the dealership tells you the payment is only $499.
• Buy furniture on credit. Yes, the new living room needs a couch. Let’s get the house first.
• Close existing credit accounts. Changes to your credit profile can sometimes have unintended consequences.
• Make major purchases. Especially if they’ll significantly reduce the funds you’ve documented for closing or reserves.
• Move large amounts of money between accounts. Moving money isn’t automatically a problem, but it can create additional documentation requirements because we may need to verify where funds came from and where they went.
• Make large unexplained cash deposits. Mortgage guidelines may require us to document the source of certain funds. Cash can be particularly difficult to document.
• Change jobs or how you’re paid. Employment changes can affect qualifying income. Talk to us before making a change whenever possible.

The safest rule is simple:

If you’re about to make a financial move and you’re wondering whether you should tell your lender — tell your lender.

A two-minute conversation beforehand can be much easier than trying to solve a problem afterward.

Don’t Forget Homeowners Insurance

You’ll also need to arrange homeowners insurance before closing.

Your insurance agent will provide information we’ll need to include in the loan, so don’t wait until the last minute to start shopping.

This is another area where you may want to compare options — not only the premium, but also coverage and deductibles.

Once you’ve selected a policy, send us your agent’s information and we’ll coordinate the mortgage-related details with them.

As Closing Gets Closer...

We’ll continue working through any remaining loan conditions and preparing everything for closing.

You’ll receive your Closing Disclosure, which shows important final information about your mortgage, including the loan terms, monthly payment, and closing costs.

We’ll review the numbers and make sure you understand what you’ll need for closing.

Your real estate agent will also typically take you through a final walkthrough of the property shortly before closing to make sure the home is in the expected condition.

And then...

Clear to Close.

Those are three words everyone involved in your transaction is very happy to hear.

It means we’ve worked through the required loan conditions and we’re preparing for the closing table.

You’ll receive final instructions about when and where you’re closing and any funds you’re responsible for bringing.

Always verify wiring instructions through a trusted, known contact before sending money. Real estate transactions can be targets for wire fraud, so never rely solely on unexpected emailed or texted wiring instructions.

Then it’s time to sign.

And get the keys.

The Best Thing You Can Do Between Contract & Closing?

Stay in communication.

Send requested documents quickly.

Keep your finances consistent.

And ask before making any major financial changes.

There are a lot of moving pieces between “Offer Accepted” and “Welcome Home.”

You don’t have to manage all of them yourself.

We’ll keep you informed, help you understand what’s next, and work together to get you to the closing table.