What Happens After My Offer Is Accepted?

Once you have that signed purchase contract in hand, there are many processes that need to occur before you get from accepted offer to the closing table.


The first is that your lender wants to know all about the property, including who owns it and if there are any liens or claims against it. They do this by what is called “ordering title,” a process by which a representative from a title company pulls ownership papers from the county recorder’s office.

Should there be any type of lien against the property, it will show up here. And this will need to be addressed before anyone can lend money against it.

Property value

The other thing the lender needs to know is the true value of the property. As the lender will only lend money against the lower of the appraised value or the contract price, an appraisal is required; in case the borrower defaults on the mortgage and the property needs to be sold, the lender wants to know what sales price to expect.


Finally, the lender will need to further verify your income and asset information. Depending on how much of this information you were asked to provide at application, this may amount to quite a bit, and could include tax returns and details of bank deposits.


Once all these steps are completed, and the lender is confident that both you and the property meet all the criteria that is required so you can move forward, a commitment letter will be issued to the seller, indicating the lender is ready to move toward closing.

At closing, the seller releases the property, and the buyer assumes ownership. The buyer also will sign paperwork for the lender, reconfirming the terms of your loan. After this, you are “officially” a homeowner, and you can collect the keys to your new home.


What to Expect in Your Mortgage Application Meeting

Your initial meeting with your mortgage professional serves two purposes: You’ll provide information to him or her, and your mortgage pro will provide information to you.

Depending on the individual lender, your mortgage professional may ask for a small amount of information on income and assets. Other lenders may want more: paystubs, tax returns, and/or bank statements.

Mortgage pros want a clear picture of you so they can find the best loan product or products for your needs. The more information you can provide initially, the better a profile they can create, and the less documentation you’ll need to provide later.

Once your mortgage professional has gathered this information and run your credit, he or she will explain your options. You’ll have an answer during or shortly after the meeting.

Of course, individuals who are debt free with high income and great credit scores are easy to put into a program, and this can happen quickly. Others may require more time to process. If it’s taking time, it’s because your mortgage pro is shopping for the best program.

Your pro will select a program and ensure you are able to pay the monthly amount. Then a prequalification letter is issued that confirms what you are able to afford. The next step is to approach your real estate agent with the letter and start your home search.

For new buyers especially, this process can be scary; ask your mortgage pro if you have questions or concerns about your mortgage application meeting.