Signing a contract to buy a home does not mean the transaction is finished. Buyers and sellers still have deadlines to meet, documents to review and issues to resolve before ownership can change hands.
What happens after the contract is signed?
Several steps may take place as the parties work toward the closing date. The timing can vary, but buyers and sellers generally move through key parts of the transaction during this period, such as:
- Inspections: The buyer completes any inspections allowed under the agreement and addresses issues within the applicable deadline.
- Appraisal and financing: The lender may order an appraisal and continue reviewing the loan application.
- Title work: The closing attorney reviews the title, and any title issues may need to be resolved before closing.
- Closing preparation: The parties work through closing documents, payoff information and other requirements.
These steps can uncover problems while there is still time to resolve them before closing.
What do buyers and sellers need to do before closing?
Buyers should respond promptly to lender and attorney requests, complete inspections, arrange homeowners insurance when required by the lender and avoid major financial changes that could affect mortgage approval.
Sellers should complete agreed repairs, maintain the property’s condition and address title or payoff issues.
Connecticut law requires a Connecticut-admitted attorney to conduct covered real estate closings.
What can go wrong before closing?
An appraisal may come in below the purchase price. An inspection may reveal an unexpected problem. The lender may request additional information or experience a delay. A title search may also uncover an issue. Addressing problems early gives the parties more time to find a solution.
What happens right before closing?
The final walkthrough gives the buyer one last opportunity to check the property’s condition. Connecticut’s Department of Consumer Protection recommends completing the walkthrough before closing.
The buyer, seller, closing attorney and lender then coordinate the final documents and funds needed for closing. At closing, the parties sign the required documents and complete the transaction.
Signing isn’t the finish line
Keeping up with deadlines and addressing problems promptly can reduce the risk of a delayed closing. When a legal or title issue arises, getting advice before closing gives buyers and sellers more time to address it.