Try it: Closing with your own numbers
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The home-buying timeline, step by step
A typical financed U.S. purchase. Open a step to see what happens, the money involved and the usual timing. Your contract sets the real deadlines.
A lender reviews your credit, income and assets and states how much it is prepared to lend.
Timing: Before you search; letters are often valid for about 60 to 90 days.
Terms: pre approval, dti, credit score
You compare homes against your budget, including taxes, insurance and HOA dues - not just the price.
Timing: As long as it takes.
Terms: piti, comparable sales
You propose a price, contingencies, deadlines and any seller concessions; the seller accepts, counters or rejects.
Timing: Responses usually come within a day or two.
Terms: counteroffer, contingency, seller concession
Both sides sign the purchase contract, which sets every deadline that follows.
Timing: Day 0 of the contract.
Terms: under contract, contingency
You pay the good-faith deposit to the neutral holder named in the contract.
Money: Often about 1% to 3% of the price, by local custom.
Timing: Usually within a few business days of signing.
Terms: earnest money, escrow
A home inspector checks the condition; you can negotiate repairs or credits, or cancel within the inspection contingency.
Money: Inspection fees are paid up front.
Timing: Commonly 7 to 14 days after signing.
The lender's appraiser estimates value. A low appraisal can create a gap you must cover or renegotiate.
Money: The appraisal fee is often paid at application.
Timing: Commonly 2 to 3 weeks after signing.
Terms: appraisal, appraisal gap, appraisal contingency
The lender verifies everything and issues conditions, then "clear to close". Avoid new debt or large unexplained deposits.
Timing: Runs in parallel with the steps above.
Terms: underwriting, clear to close, rate lock
You confirm the home is in the agreed condition and any repairs are done.
Timing: Usually within a day or two of closing.
Terms: final walkthrough
You sign the loan and transfer documents and pay cash to close; you receive the keys. The Closing Disclosure arrives at least three business days before.
Money: Cash to close is due, usually by wire.
Timing: Commonly 30 to 45 days after signing for a financed purchase.
Terms: closing, cash to close, closing disclosure
Timing ranges are common practice, not rules. Cash purchases can close in one to two weeks.
Related Terms
More Buying Terms
This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.
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