Offer Accepted! Your Focused Guide to Immediate Next Steps

That moment your offer on a new home is accepted is undeniably thrilling! It’s a monumental step, and the excitement is palpable. However, hot on the heels of that joy often comes the pressing question: "What are the immediate next steps I need to take?"

The period between offer acceptance and getting the keys—often called the "escrow" or "contract period"—is a whirlwind of activity, typically lasting 30 to 45 days, most commonly 30 days, and sometimes can be as aggressive as 21 days. This phase is front-loaded with critical tasks and tight deadlines. Understanding these initial actions will empower you to navigate the beginning of this journey with confidence and keep your home purchase on track.

The First 72 Hours: Laying the Groundwork

The days immediately following offer acceptance are pivotal. Several actions demand your immediate attention.

1. Opening Escrow: The Neutral Zone for Your Transaction

Once your offer is accepted, the first official step is to "open escrow". Escrow is a neutral third-party service—often an escrow company, title company, or attorney, depending on your state's practices—that acts as an impartial intermediary. Think of them as the referee ensuring all conditions of your purchase agreement are met by both you and the seller before the property and funds officially change hands.

The seller's real estate agent will typically initiate opening escrow, though anyone involved in the transaction can do so (buyer, seller, real estate agent, or lender). An escrow officer will be assigned to manage the paperwork, securely hold important documents, and oversee the handling of funds, starting with your earnest money. This provides security and ensures that everything is handled correctly.

2. The Earnest Money Deposit (EMD): Showing You're Serious

The Earnest Money Deposit (EMD), or "good faith deposit," is a sum of money you provide shortly after your offer is accepted to demonstrate your commitment to purchasing the property. The EMD amount will be specified in your purchase agreement. It signals to the seller that you're a serious buyer.

Typical EMD Amount: The EMD is commonly 1% to 3% of the home's purchase price.

• Example for a $1 Million Home: For a $1,000,000 home, this would be $10,000 to $30,000. In competitive markets, a larger EMD (e.g., 4-5% or $40,000-$50,000 on a $1 million home) can make an offer more attractive, but it also means more money is at risk if you default on the contract.

Payment and Holding of EMD:

• Timeline: Your purchase agreement will specify the EMD due date, but it's typically within 1-3 business days (often 24 to 48 hours) of offer acceptance. Prompt payment is crucial.
• Method: Payment is usually via certified check, personal check (if allowed and delivered quickly), or wire transfer.
• To Whom: The EMD is paid to the escrow company or the real estate brokerage's trust account—never directly to the seller.
• Where it's Held: The EMD is kept in a secure escrow account until closing. At closing, this amount is typically applied towards your down payment and/or closing costs.

Protecting Your EMD: Your EMD is generally refundable if you withdraw from the deal for a reason covered by a contingency in your purchase agreement (like an unsatisfactory inspection) and within that contingency's timeframe. You risk forfeiting the EMD if you breach the contract without a valid contingency, miss critical deadlines, or change your mind after contingencies are removed.

Pro Tip: Immediately confirm the EMD amount, due date, and exact payment instructions with your agent or escrow officer. Always get a receipt for your deposit.

3. Shop for Mortgage Rates and Gather Documents

Even if you have a pre-approval, now is the critical time to shop for the best mortgage rates and terms. Don't assume your pre-approving lender is automatically the best or only option.

• Compare Lenders: It's highly recommended to get official Loan Estimates from at least 3 to 5 different lenders. Include a mix of lender types, such as traditional banks, credit unions, mortgage brokers, and online lenders, to ensure you're seeing a competitive range of offers. Comparing multiple offers can save you a significant amount of money over the life of the loan.
• Gather Your Documents: As you begin to seriously engage with lenders, start gathering all necessary financial documents. This typically includes:
  • Recent pay stubs
  • W-2 forms from the past two years
  • Federal tax returns (usually the last two years)
  • Bank account statements (checking, savings)
  • Investment account statements
  • Photo ID (driver's license, passport)
  • A copy of the signed purchase agreement
  • Information on any other debts or assets. Having these documents ready will speed up the formal mortgage application process once you select a lender.

Pro Tip: When comparing Loan Estimates, look beyond just the interest rate. Pay close attention to lender fees (origination charges, points), other closing costs, and the Annual Percentage Rate (APR), which gives a broader picture of the loan's cost.

Initiating Due Diligence: Your Investigation Period Begins

With escrow open and your EMD submitted, the due diligence phase kicks off. This is your window to thoroughly investigate the property and ensure the conditions (contingencies) in your offer are met.

4. Schedule Your Home Inspections (Urgently!)

The home inspection is arguably the most crucial step to protect your investment. Your offer is likely contingent on a satisfactory inspection, allowing you to negotiate repairs, request credits, or withdraw your offer if major issues arise.

• Timeline is Key: The inspection period is usually short, often 7-17 days (sometimes 7-10 days) from offer acceptance. Schedule your general home inspection immediately.
• Choosing an Inspector: Seek a qualified, licensed (if required), and certified inspector. Look for members of ASHI or InterNACHI. Get referrals from trusted sources, check reviews, and ask for sample reports.
• What's Covered: A general inspection is a visual examination of major systems: structure, exterior, roof, plumbing, electrical, HVAC, interior, and built-in appliances.
• Specialized Inspections: Based on the general inspection or property type (especially for a $1M home), consider scheduling specialized inspections like:
  • Termite/Pest
  • Radon
  • Mold
  • Sewer scope
  • Chimney
  • Structural engineer (if major concerns)
  • Pool/Spa
• Attend and Review: Attend the inspection if possible. Thoroughly review the detailed report (usually provided within 24-48 hours) with your agent. Focus on major defects, not minor cosmetic issues.
• Negotiate: Based on findings, you can accept the property as-is, request repairs, ask for a price reduction/credit, or walk away (if your contingency allows).

Pro Tip: For a $1M home, the cost of undiscovered issues can be substantial. Don't skimp on inspections. Get quotes for any significant repairs needed to support your negotiation requests.

5. Obtain and Begin Reviewing HOA Documents (If Applicable)

If buying a condo, townhouse, or home in a planned development, it's likely governed by a Homeowners Association (HOA). Reviewing HOA documents is as critical as the physical inspection. The seller typically provides these, often ordered through escrow. Key documents to start reviewing immediately include:

• Covenants, Conditions & Restrictions (CC&Rs)
• Bylaws
• Rules and Regulations
• Financial Statements (Budget, Reserve Study)
• Meeting Minutes

Look for financial health (especially adequate reserves), restrictive rules (on renovations, pets, rentals), maintenance responsibilities, and any signs of litigation. For a $1M property, ensure the HOA aligns with your lifestyle and investment expectations.

Managing Contingencies: Your Contractual Safety Nets

Contingencies are conditions in your offer that must be met for the sale to proceed. If not met (and not waived), you can usually cancel and get your EMD back.

• Common Contingencies: Inspection, Appraisal, Financing (Mortgage), Title.
• Deadlines are Crucial: Pay close attention to deadlines for acting on or removing contingencies. Missing one could mean inadvertently waiving the contingency or losing your EMD. The inspection contingency often has the earliest deadline.

The Money Matters: Lender Actions

While due diligence is underway, critical financial steps are also in motion with your chosen lender.

6. The Home Appraisal Process Begins

If you're getting a mortgage, your lender will order an appraisal to confirm the property's market value. This protects the lender from loaning more than the home is worth. The lender, not you, orders and selects the appraiser. The process can take up to two weeks. If the appraisal comes in low, your appraisal contingency (if you have one) allows you to renegotiate, pay the difference, challenge the appraisal, or walk away.

7. Finalizing Your Mortgage: Act Promptly

You have a pre-approval, now it's time for final loan approval (underwriting) with your chosen lender.

• Submit Documents Immediately: Your lender will request updated financial documents (pay stubs, bank statements, tax returns, copy of purchase agreement, etc.). Respond to these requests without delay to avoid closing issues.
• Mortgage Rate Lock: Discuss locking your interest rate with your lender. Locks are typically for 30-60 days and protect you from rate increases. The average time to close is around 44-45 days, so a 45- or 60-day lock is often suitable.
• Avoid Major Financial Changes: From now until closing, do NOT make large purchases on credit, open/close credit accounts, co-sign loans, or change jobs without lender consultation. Such actions can jeopardize your loan approval.

Initiating Insurance and Title Work

Two more crucial items to start addressing early:

8. Start Shopping for Homeowners Insurance

Lenders require homeowners insurance by closing.

• Start Early: Begin shopping as soon as your offer is accepted.
• Get Multiple Quotes: Compare rates from different insurers.
• Determine Coverage: Ensure dwelling coverage is for full replacement cost. For a $1M home, consider higher liability limits (e.g., $300k-$500k or an umbrella policy).
• Cost for a $1M Home: Can range significantly (e.g., $4,370 in MA to $17,162 in FL annually for $1M dwelling coverage), with a national average around $7,412 to $8,414. Factors include location, home characteristics, and chosen deductibles.

9. Title Search and Title Insurance Process Begins

A title company or attorney will conduct a title search to ensure the seller can legally transfer ownership and to identify any liens or claims.

• Preliminary Title Report: You'll receive this report detailing findings and any "exceptions" (issues not covered by title insurance unless resolved). Review this promptly with your agent or attorney.
• Lender's Title Insurance: Protects the lender and is almost always required. Typically paid by the buyer.
• Owner's Title Insurance: Protects your equity. Highly recommended. Payment responsibility varies by location (seller often pays in WA). Cost is a one-time premium based on sales price (e.g., 0.5%-1% of value, so $4,500-$5,750 for a $1M home).

A Brief Look Ahead: Nearing the Finish Line

While the above are your immediate priorities, these upcoming key milestones will require your attention as closing approaches.

The Final Walk-Through: Last Look Before You Leap

The final walk-through is your last chance to inspect the property before officially taking ownership.

• Purpose: To verify the home is in the condition agreed upon in the purchase contract, that any negotiated repairs have been completed satisfactorily, and that no new damage has occurred (e.g., during the seller's move-out). It's not a new inspection but a verification step.

• When: Typically 24 to 48 hours before your closing appointment, ideally after the seller has completely moved out.

• Who Attends: Usually you (the buyer) and your real estate agent.

• Checklist: Bring your purchase agreement, home inspection summary, and list of agreed-upon repairs.

  • Verify all agreed-upon repairs are complete and satisfactory; ask for receipts/warranties.
  • Ensure the home is "broom-swept" and free of the seller's belongings and debris.
  • Confirm all items included in the sale (appliances, fixtures) are present and in agreed-upon condition.
  • Test systems: lights, faucets (hot/cold), toilets, HVAC, and all included appliances.
  • Check windows and doors for proper operation and locking.
  • Briefly check the exterior for any new damage or missing agreed-upon landscaping.

• If Issues Arise:

  Immediately notify your real estate agent. Options may include delaying closing, negotiating a credit or repair with the seller, having funds held in escrow for post-closing repairs, or in extreme cases, terminating the contract if permissible.

Reviewing Your Closing Disclosure (CD): The Final Numbers

The Closing Disclosure (CD) is a critical five-page document from your lender detailing all final loan terms and costs.

• The 3-Day Rule: By law, you must receive your CD at least three business days before your scheduled closing. Use this time to review it thoroughly and compare it to your latest Loan Estimate.
• Key Items to Scrutinize:
  • Page 1: Verify your name, property address, loan amount, loan term, interest rate, product type (e.g., Fixed Rate), and if there's a prepayment penalty or balloon payment. Check projected monthly payments (principal, interest, mortgage insurance, escrow) and the total "Cash to Close."
  • Page 2: Itemized closing costs (Loan Costs and Other Costs). Compare these line-by-line with your Loan Estimate, noting any changes. Some fees have zero tolerance for increases, others 10%, and some can change.
  • Page 3: Detailed calculation of "Cash to Close." Ensure your earnest money deposit and any seller credits are accurately applied.
  • Page 4: Additional loan disclosures like assumption policy and late payment fees.
  • Page 5: Loan calculations (APR, Total Interest Percentage - TIP) and contact information.
• Discrepancies or Questions: Contact your lender or closing agent immediately. Significant changes to loan terms (APR, prepayment penalty, loan product) might trigger a new three-day review period, potentially delaying closing.

Closing Day: The Keys Are Almost Yours!

Closing day (or "settlement") is when you sign final paperwork, pay remaining costs, and officially become the homeowner.

• What to Expect: Typically held at a title company, escrow office, or attorney's office. Attendees usually include you, the seller, agents, and a closing agent. The appointment can last 30 minutes to a couple of hours. The main activity is signing numerous legal documents.
• Key Documents: You'll sign the final Closing Disclosure, Promissory Note (your promise to repay the loan), Mortgage or Deed of Trust (secures the loan with the home), and the Deed (transfers ownership to you, signed by the seller).
• Paying Your Dues: You'll pay your "cash to close," which includes your remaining down payment (after EMD credit) and all closing costs.
  • Closing Costs: Typically 2-5% of the home's purchase price. For a $1 million home, this could be $20,000 to $50,000. These include lender fees, appraisal fee, title insurance, escrow fees, recording fees, prepaid taxes/insurance, etc.
  • Payment Method: Usually a cashier's check or wire transfer. Crucially, always verbally verify wire instructions with a trusted contact at the closing agency before sending funds to avoid wire fraud.
  • Property Tax Prorations: Annual property taxes are divided between you and the seller based on ownership duration during the tax year.
• Getting the Keys: Once all documents are signed, funds are transferred and verified, and the deed and mortgage are sent for recording, the sale is closed. You'll then receive the keys! Clarify the exact key handover procedure.

Conclusion: Your Journey to Homeownership is Underway!

Congratulations again! While the road from an accepted offer to closing is busy, focusing on these immediate next steps—opening escrow, depositing earnest money, shopping for your mortgage, initiating inspections and document reviews, and working closely with your lender—will set you up for a smoother transaction. Stay organized, communicate proactively with your team, and you'll be holding the keys to your new home before you know it.