What Happens Between Contract Signing and Closing?
You found the perfect home, your offer was accepted and the contract is signed—congratulations! But before you pop the champagne, there’s still a critical stretch of the homebuying journey ahead: the closing process.
Between contract signing and getting the keys, several important steps must be completed to ensure the deal moves forward smoothly. Here are the key milestones every buyer should expect during this phase, plus helpful tips to keep things on track.
Entering Escrow
Once your offer is accepted and the contract is signed, both parties typically enter escrow. Escrow is a neutral holding arrangement where a third party manages funds and documents until the transaction is finalized.
During this time, you’ll deposit earnest money—a good-faith payment showing you’re serious about the purchase. This money is usually credited toward your down payment at closing.
✅ TIP: Confirm the escrow instructions and timeline with your REALTOR® so you don’t miss any deadlines.
The Appraisal
If you’re financing the purchase, your lender will require a home appraisal to determine the property’s market value. A licensed appraiser will assess the home based on factors such as:
- Condition and age
- Location
- Renovations
- Sales of similar nearby properties
If the appraisal matches or exceeds the agreed-upon price, you’re one step closer to closing. If the home appraises for less, you may need to renegotiate or cover the difference.
📖 What to expect during an appraisal
✅ TIP: Ask your agent to run recent comps before the appraisal so you have a sense of what to expect and can be prepared to negotiate if needed.
Securing Insurance
Before your lender gives final approval, you’ll likely need to secure homeowners insurance. Depending on the property’s location, other types of coverage—like flood, earthquake or liability insurance—may also be required.
Even if it’s not mandated, insurance is critical to protecting your investment and peace of mind.
✅ TIP: Start gathering insurance quotes early so you can compare coverage and rates before your lender’s deadline.
Getting a Home Inspection
A home inspection isn’t always required, but it’s highly recommended—and often included as a contingency in your contract. A qualified inspector will evaluate the home’s structure, systems and safety.
If the inspection uncovers major issues, you’ll have options: negotiate repairs, request a credit or, if needed, walk away without penalty.
📖 What to expect during a home inspection
✅ TIP: Attend the inspection if possible. It’s a great opportunity to ask questions and learn more about the home’s maintenance needs.
The Final Steps
Once the appraisal, inspection and insurance are squared away, your lender will issue final approval, and you’ll schedule your closing day. On that day, you’ll review and sign documents, pay your remaining costs and—finally—get the keys.
📖 Steps between signing and closing
✅ TIP: Do a final walkthrough the day before closing to confirm the home’s condition matches what was agreed upon—and that any requested repairs were completed.
The Bottom Line
Signing the contract is a big milestone, but it’s just the beginning of the final leg of your homebuying journey. Knowing what to expect—and working closely with your REALTOR®—can help ensure a smoother, more confident path to homeownership.