Buying a Home: What Happens Between Your Accepted Offer and Closing
Your offer was accepted. Congratulations! Now comes the part most people never see: the weeks of paperwork, deadlines and coordination between the signed purchase agreement and the day you get the keys. On our team, this is Justin's specialty. He makes sure every i is dotted and every t is crossed. Here's what happens along the way.
1. The purchase agreement is signed, and the clock starts
Once everyone has signed, the purchase agreement sets the schedule for everything that follows: the inspection period, the financing deadline, the closing date and more. Many of these deadlines count from the date of final acceptance, so missing one can affect your rights under the agreement. We track every date and tell you what's coming.
2. Earnest money is delivered
The earnest money in your offer is delivered as the agreement specifies and held in a trust account. It shows the seller you're serious. At closing, it's credited toward your down payment and costs.
3. Inspections
If your offer has an inspection contingency, schedule the inspection right away. The window is usually short. Once you have the report, the agreement sets out your options: ask for repairs, ask for a credit or a price change, accept the home as it is, or, in some cases, cancel within the deadline.
4. The loan: application, appraisal and approval
Your lender will ask for updated documents such as pay stubs, bank statements and explanations of any large deposits. Send them quickly. The lender also orders an appraisal to confirm the home's value. If the appraisal comes in below the price, we'll go over your options with you. Until closing, avoid opening new credit, making big purchases or changing jobs without checking with your lender first.
5. Title work
A title company or closing attorney checks the property's ownership history and looks for liens or other issues, then issues a title commitment for you to review. Minnesota has two systems of land records: abstract property and registered (Torrens) property (Minn. Stat. ch. 508). The system changes how title is examined and how documents are recorded. The title company handles that, and we keep an eye on it.
6. Homeowner's insurance
Your lender will need proof of homeowner's insurance before closing. Start getting quotes early, especially if the home has an older roof or other items from the inspection.
7. The Closing Disclosure
Your lender must give you the Closing Disclosure at least three business days before closing (CFPB: What is a Closing Disclosure?). It shows your final loan terms and costs. Compare it with your Loan Estimate and ask questions before closing day, not at the table. The settlement statement will also show Minnesota items such as the state deed tax and the mortgage registry tax (MN Dept. of Revenue).
8. Watch out for wire fraud
Before you wire any money, call the title company at a phone number you already know is real, not one from an email. Never act on an email that changes the wiring instructions. Scammers target real estate closings. If something seems off, stop and call us. (You can report fraud to the FBI at ic3.gov.)
9. Final walk-through
Shortly before closing, you'll walk through the home to confirm it's in the condition the agreement requires, that agreed repairs are done and that anything included in the sale is still there.
10. Closing day
You'll sign the loan documents and the closing papers, your funds are applied, and the deed is recorded. Then you get the keys. Once you've moved in, apply for the homestead classification with the county assessor. Applications are due by December 31 to count for the next year's taxes (MN Dept. of Revenue: Homestead).
It's a lot of moving parts, and that's why we're here. If you're getting ready to buy or sell and want someone who keeps all the details straight, call or text the Reinalda Lancaster Real Estate Group at 507-951-7316.