The Real Estate Closing Timeline: What Happens After You Go Under Contract

Once a buyer and seller sign a purchase contract, the deal doesn’t close overnight. Most residential transactions take 30–45 days from contract to closing (cash deals can move faster), and during that window a series of deadlines determine whether the sale actually happens. Missing any one of them can cost a buyer their earnest money, delay closing, or unravel the deal entirely. Here’s what typically happens, in order.

1. Effective Date

The contract becomes binding once both parties have signed and all parties have received a signed copy — this is the “effective date,” and every other deadline in the transaction is usually counted from it (e.g., “inspection period ends 10 days after the effective date”).

2. Earnest Money Deposit

Within a few days of the effective date, the buyer wires or delivers an earnest money deposit — typically 1–3% of the purchase price — to an escrow or title company. It signals the buyer’s good-faith intent to complete the purchase and is credited toward the buyer’s closing costs at closing.

3. Inspection Period

The buyer typically has 7–10 days to hire a licensed inspector and review the property’s condition. Based on the findings, the buyer can request repairs, negotiate a credit, or in most contracts, terminate the deal and get their earnest money back — but only if they act before the inspection period ends. Once it passes, the buyer usually accepts the property “as-is.”

4. Loan Application & Contingency (financed purchases)

Buyers using a mortgage must formally apply within a set window (often 3–5 days after the effective date) and then work with their lender through underwriting. The loan contingency deadline is the date by which the buyer must have a loan commitment in hand; missing it without an extension can put the buyer’s earnest money at risk. Cash purchases skip this step entirely, which is why cash timelines are shorter.

5. Appraisal

The lender orders an appraisal to confirm the home is worth at least the loan amount. If it appraises below the purchase price, the buyer, seller, or both typically renegotiate the price, the buyer covers the gap in cash, or the deal falls through under the financing contingency.

6. Title Search & Clear to Close

A title company searches public records for liens, unpaid taxes, or ownership disputes and issues title insurance once the property is clear. Around the same time, the lender issues final “clear to close” loan approval, confirming there are no outstanding conditions left before funding.

7. Final Walkthrough

Usually 24–48 hours before closing, the buyer does a final walkthrough to confirm the property is in the agreed-upon condition and any negotiated repairs were completed.

8. Closing Day

Buyer and seller (or their representatives) sign the final paperwork, the buyer’s funds are disbursed, the deed is recorded, and keys change hands. The deal is officially closed.

Who’s responsible for what

• Buyer: earnest money, inspection, loan application, final walkthrough, closing funds.
• Seller: completing negotiated repairs, providing property access, clearing title issues.
• Buyer’s / Listing agent: coordinating deadlines between all parties and keeping the deal on track.
• Lender: underwriting, appraisal, and final loan approval (financed deals only).
• Title / escrow company: holding earnest money, searching title, and facilitating closing.

Timelines and contingency periods vary by state, contract form, and negotiated terms — always confirm your exact deadlines with your realtor, attorney, or title company rather than relying solely on general guidance like this.