Under Contract: What Do I Need to Do Now?

Under Contract: What Do I Need to Do Now?

Your offer has been accepted.

You’re officially moving forward.

And suddenly you realize:

There is a LOT to do.

Don’t panic.

You don’t have to remember everything at once.

Think of this stage as a series of steps.

Your job is to complete your part, communicate with your team, and stay aware of what’s coming next.

Step 1: Read Your Contract and Know Your Deadlines

Your contract is the roadmap for the transaction.

It contains important terms and deadlines.

You should know:

  • When your inspection needs to happen
  • Any financing deadlines
  • Appraisal-related provisions and timing
  • Closing date
  • Possession terms
  • Other transaction-specific deadlines

Your real estate professional and attorney can help you understand the process and your respective roles.

If you’re unsure about what a contract provision means, ask your attorney.

Step 2: Schedule Your Inspection

If your contract provides for an inspection, don’t wait until the last minute.

Schedule it within the applicable timeframe.

A home inspection is designed to give you information about the condition of the property.

It isn’t a guarantee that every possible defect will be discovered.

And it isn’t a prediction of everything that could ever go wrong with the house.

It’s another piece of information to help you make informed decisions.

Step 3: Keep Working With Your Lender

Your lender is still working on your loan.

You may need to provide:

  • Bank statements
  • Pay stubs
  • Tax documents
  • Employment information
  • Explanations for financial activity
  • Other documentation

Respond promptly.

The faster you provide what your lender requests, the easier it is to keep things moving.

Step 4: Don’t Make Big Financial Changes

This deserves repeating.

After your offer is accepted, don’t suddenly decide it’s time to buy:

  • A new car
  • New furniture on credit
  • Expensive appliances
  • A boat
  • A large vacation
  • Anything else that creates significant new debt

Don’t close credit cards or open new ones without talking to your lender.

Don’t move large amounts of money without understanding the documentation requirements.

And don’t change jobs without discussing it with your lender first.

Your loan is still being evaluated.

Step 5: Get Your Homeowners Insurance

If you’re financing the home, your lender will generally require homeowners insurance.

Start this process early enough that you aren’t scrambling right before closing.

Your insurance professional and lender can tell you what documentation is required.

Step 6: Stay Available

You may get calls or emails from:

  • Your lender
  • Your attorney
  • Your real estate broker
  • The title company
  • The inspector
  • Insurance professionals
  • Other transaction-related professionals

You don’t have to answer every question instantly.

But you do need to respond.

Silence can create delays.

If you don’t understand a request, ask what is needed.

Step 7: Review Information as It Comes In

You may receive inspection reports, loan disclosures, title information and other documents.

Read them.

You don’t need to understand every technical detail.

But don’t simply click “sign” because you recognize the document.

If something doesn’t make sense, ask.

Step 8: Be Honest About Changes

Did something change?

New job?

Change in income?

New debt?

Large deposit?

Change in marital or household circumstances?

Anything else that could affect the transaction?

Tell the appropriate professional.

Don’t hide a problem hoping it will disappear.

Small issues can become much bigger when they’re discovered late.

Step 9: Keep Your Eye on the Closing Date

Closing can feel far away.

Then suddenly it’s next week.

Make sure you understand:

  • Where closing will take place
  • What you need to bring
  • What identification is required
  • How funds need to be handled
  • What your lender still needs
  • What your attorney or title company needs
  • When you’ll receive possession

Your closing professional will provide the specific instructions for your transaction.

Step 10: Get Ready for the Final Walkthrough

The final walkthrough usually happens close to closing.

It’s not another home inspection.

It’s generally an opportunity to make sure the property is in the expected condition and that agreed-upon items or repairs have been addressed as required by your contract.

This is another reason to understand what you agreed to.

Your Most Important Job?

Communicate.

If you’re confused, ask.

If you’re worried, speak up.

If something changes, tell the appropriate person.

If you receive a request you don’t understand, ask for clarification.

You don’t have to be an expert.

You just have to stay involved.

A Simple Under-Contract Checklist

☐ Review your contract and deadlines

☐ Schedule inspection if applicable

☐ Stay in contact with your lender

☐ Provide requested financial documents

☐ Arrange homeowners insurance

☐ Avoid major financial changes

☐ Respond to transaction communications

☐ Review important documents

☐ Complete required tasks on time

☐ Keep your closing date in mind

☐ Prepare for your final walkthrough

☐ Ask questions when you don’t understand something

The Bottom Line

Being under contract is exciting.

It can also feel like a lot.

Take it one step at a time.

You don’t need to know what’s happening three weeks from now.

You just need to know what needs to happen now.

That’s what your buying process should help you understand.

Have a Question?

Buying a home comes with a lot of questions. You don’t have to figure everything out on your own.

Have a question about something you read here? Want to talk through your situation? Or just not sure what your next step should be?

I’m happy to help.

Schedule a Time to Talk With Karyn

No pressure. No obligation. Just straight answers.

Prefer to just send me a question?