What Happens After You Finance a House?
Getting your offer accepted is exciting, but it's not the end of the homebuying process.
Once you sign the purchase contract, several important steps happen before you officially become the homeowner. Your lender, Realtor, title company, and other professionals will work together to get the mortgage approved and the transaction ready for closing.
So, what happens after you finance a house?
1. Your Initial Deposit Is Due
After your offer is accepted and the purchase contract is signed, you'll usually have a specific deadline to make your initial deposit, sometimes referred to as earnest money.
This deposit is transferred to the title company according to the terms of your contract.
Think of it as a security deposit that demonstrates your commitment to purchasing the property.
The good news is that this money generally isn't separate from your down payment. It is typically credited toward the funds you'll need to bring to closing.
For example, if your contract requires a $10,000 initial deposit and you later need $40,000 toward your down payment and closing costs, that $10,000 may already count toward the amount you'll need at closing.
Important: Use Verified Funds
Your initial deposit must come from an account that has been verified and approved by your Loan Officer.
Don't transfer money from an account that hasn't been reviewed by your lender.
If a second deposit is required, make sure you follow the deadlines in your purchase contract and use funds from an approved account.
2. The Mortgage Loan Process Begins
Once the purchase contract is signed, your mortgage application moves forward.
Typically, within 5 days after signing the contract, your loan application is submitted to the bank, officially starting the next stage of the mortgage process.
At this point, the lender begins reviewing your financial information and the property.
You may be asked to provide documents such as:
Bank statements
Pay stubs
W-2s or tax returns
Identification
Employment information
Additional documentation requested by underwriting
This is why staying responsive to your lender is so important.
A missing document or delayed response can potentially slow down the process.
3. Schedule Your Home Inspection
While the lender is working on the mortgage, you'll also want to schedule a home inspection with your Realtor.
The inspection gives you an opportunity to learn more about the property's condition before completing the purchase.
The inspector may look at areas such as:
Roof
Electrical systems
Plumbing
HVAC
Foundation
Structural components
Major appliances
A typical home inspection may cost around $150 to $400, although the price varies depending on the property and location.
The inspection is different from the appraisal.
The inspection looks at the condition of the home.
The appraisal evaluates the property's market value for the lender.
4. The Lender Orders an Appraisal
After the loan process begins, the lender will typically order an appraisal.
The purpose of the appraisal is to determine whether the property's market value supports the purchase price and the mortgage being requested.
For example, imagine you agree to purchase a home for $400,000.
If the appraisal supports a value of $400,000 or higher, the transaction may proceed as expected.
But if the home appraises for significantly less than the purchase price, your lender and Realtor may need to discuss potential solutions.
The appraisal fee varies depending on the property and market, and it should generally be paid promptly to avoid unnecessary delays.
5. Continue Through Underwriting
Once the lender has the necessary documents, the loan moves through underwriting.
The underwriter reviews the borrower's financial information and the property details to make sure the loan meets the program's requirements.
You may receive requests for additional documentation or explanations during this stage.
For example, your lender may ask for:
An updated bank statement
An explanation for a large deposit
Additional income documentation
Updated insurance information
Property-related documents
The most important thing is to respond quickly and accurately.
6. Prepare Your Down Payment and Closing Funds
As you get closer to closing, your lender and title company will determine exactly how much money you'll need to bring to the transaction.
This can include:
Down payment
Closing costs
Prepaid expenses
Reserves, if required
Other transaction-related costs
Your down payment should come from an account that has already been verified and approved by your Loan Officer.
For example, if you're purchasing a $400,000 home with 5% down, your down payment would be:
$20,000
If you previously deposited $5,000 as your initial deposit, that amount may be credited toward the funds needed at closing.
The remaining amount would be due according to the final closing instructions.
7. Get Ready for Closing
Once the lender has completed underwriting and all required conditions have been satisfied, the loan can move toward final approval and closing.
Before sending your funds, always follow the official instructions from your title company.
Wire fraud is a serious risk in real estate transactions, so don't rely on payment instructions sent through an unexpected email or text message. If you're unsure, independently verify the instructions with the title company using a trusted phone number.
Once everything is approved, you'll sign the final documents, your funds will be transferred, and the transaction can be funded.
Then comes the best part:
You get the keys to your new home.
What Should You Do After Your Offer Is Accepted?
The period between signing the contract and closing can feel overwhelming, but staying organized can make the process much smoother.
Remember these key points:
Use only verified funds
Don't move money between accounts without talking to your Loan Officer first.
Respond quickly
If your lender requests a document, send it as soon as possible.
Schedule your inspection
Don't wait until the last minute.
Pay the appraisal promptly
Delays here can affect the timeline.
Avoid major financial changes
Don't open new credit accounts, make large purchases, change jobs, or move money around without discussing it with your lender first.
Stay in communication
Your lender, Realtor, and title company are working toward the same goal: getting you to closing.
From Accepted Offer to Homeowner
Getting your offer accepted is a major milestone, but there's still work to do before you receive the keys.
Understanding what happens after your offer is accepted can help you feel more prepared and avoid unnecessary delays.
At Fair Mortgage Lending, we guide borrowers through the mortgage process from application to closing, helping you understand what comes next at every stage.
Have questions about your mortgage process? Send us a message.
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