From Pending to Closing: What Happens After You Go Under Contract

Curt Reichstetter

May 10

5 min read

Updated: 3 days ago

Going under contract is a major milestone, but it is not the finish line. The period between ratification and closing is when inspections, financing, appraisal, title work, documentation, and final preparations have to come together. Understanding the sequence helps Richmond buyers and sellers respond quickly without treating every new request as a crisis.

The exact contract and loan determine which steps apply and when they must be completed. Your real estate agent, lender, settlement professional, inspectors, and other advisers should explain the requirements of your transaction. The guide below provides a practical overview of what commonly happens.

What Does “Under Contract” Mean?

A home is under contract after the buyer and seller have agreed to the written terms and the contract has been ratified. The parties now have duties, deadlines, and contingencies defined by that agreement. The property may be labeled pending or under contract, but the transfer is not complete until the closing documents are signed, funds are delivered, and the transaction is recorded as required.

The Main Steps Between Ratification and Closing

1. The Contract and Deadlines Are Organized

The first job is to turn the signed contract into a working calendar. Important dates may include deposit delivery, inspection periods, financing milestones, appraisal, title review, final walkthrough, and settlement. Missing a deadline can reduce options or create avoidable conflict, so strong transaction management matters from the beginning.

2. The Earnest Money Deposit Is Delivered

If the contract requires an earnest money deposit, it must be delivered according to the contract instructions and timeline. The deposit is generally held by the named escrow agent and later credited as the contract and settlement documents provide. Buyers should follow the written delivery instructions and keep confirmation.

3. Inspections and Due Diligence Take Place

A home inspection is a visual evaluation of the property’s condition, not a pass-or-fail test. Buyers should focus on the significance of findings, the likely cost and urgency of repairs, and whether additional evaluation is appropriate. The contract determines what the buyer may request and the deadlines for doing so.

Richmond-area homes span many ages and construction styles. Crawl-space moisture, roof age, drainage, electrical components, HVAC systems, and older materials may require careful interpretation. The goal is to replace uncertainty with useful information and make decisions that fit the buyer’s budget and risk tolerance.

4. Financing Moves Toward Final Approval

Preapproval is only the beginning of the lending process. After ratification, the lender may verify income, assets, employment, insurance, debts, and the property itself. Buyers should respond promptly, avoid unexplained financial changes, and ask the lender before opening credit, moving large sums, changing jobs, or making major purchases.

5. The Appraisal Is Completed When Required

When financing requires an appraisal, the lender orders an independent opinion of value. An appraisal protects the lender’s collateral position; it is not a substitute for an inspection. If the appraised value is below the contract price, the available paths depend on the contract, financing, appraisal provisions, and the parties’ willingness and ability to negotiate.

6. Title and Settlement Work Continue

The settlement or title professional examines ownership records, prepares documents, coordinates figures, and works to identify issues that could affect transfer. Buyers also make decisions about title insurance and closing logistics. Sellers may need to provide information about loans, liens, marital status, trusts, estates, or other ownership matters. Early responses help prevent last-minute delays.

7. Insurance and Utilities Are Arranged

Buyers normally need acceptable homeowners insurance in place before a financed closing. Insurance availability and cost can affect the overall monthly payment, so waiting until the final days can create unnecessary pressure. Buyers should also confirm when utilities should transfer and what providers serve the property.

8. The Final Walkthrough Is Completed

The final walkthrough is generally an opportunity to confirm that the property is in the expected condition, agreed work has been addressed as required, and included items remain. It is not a new inspection or a chance to renegotiate ordinary issues. If something material has changed, the agents and settlement professionals can help identify the appropriate next step.

9. Closing Documents Are Signed and Funds Are Delivered

Before closing, buyers should review the figures provided by their lender and settlement professional, confirm wiring instructions through a trusted channel, and understand what identification or funds are required. Wire fraud is a serious risk: never rely on changed instructions received only by email. Independently confirm instructions using a known phone number.

What Buyers Can Do to Keep the Transaction Moving

Read the contract and maintain a shared deadline calendar.
Respond quickly to the lender, agent, inspector, and settlement professional.
Keep finances stable and ask before making major credit or employment changes.
Budget for inspections, appraisal, insurance, closing costs, moving, and immediate repairs.
Keep questions in writing when the answer affects a deadline or important decision.
Confirm wire instructions independently before sending money.

What Sellers Can Do to Reduce Closing Risk

Provide requested title, loan, association, and property information promptly.
Keep the property in the agreed condition and continue ordinary maintenance.
Complete negotiated work on time and retain receipts or documentation.
Coordinate move-out, utilities, keys, access, and the final walkthrough.
Tell the listing agent immediately about any new damage, repair, lien, or ownership issue.
Avoid assuming the sale is complete until closing and recordation are confirmed.

Why Transactions Sometimes Fall Apart

A ratified contract can still encounter inspection disputes, low appraisals, financing problems, title defects, insurance issues, missed deadlines, unexpected property damage, or a party’s failure to perform. Not every problem ends the transaction. Clear communication, realistic expectations, complete documentation, and experienced problem-solving often create a path forward.

Why Coordination Matters

The period between contract and closing involves several professionals working on different parts of the same transaction. Two Dog Realty has worked with the same transaction coordinator for more than 18 years. That continuity supports deadline tracking, documentation, communication, and the practical follow-through needed to keep a transaction organized.

Frequently Asked Questions

How long does it take to close after going under contract?

The timeline depends on the contract, financing, property, and settlement requirements. Cash purchases may move differently from financed purchases. The dates written into the ratified contract control the transaction.

Is a home inspection the same as an appraisal?

No. An inspection evaluates visible property conditions for the buyer. An appraisal provides an opinion of value, commonly for the lender. Each serves a different purpose.

Can a buyer make a large purchase before closing?

A major purchase or new debt can affect loan approval. Buyers should ask their lender before changing credit, employment, accounts, or large balances during the transaction.

What happens if the appraisal is low?

Possible next steps depend on the contract and loan. They may include reviewing the appraisal, renegotiating, using agreed appraisal-gap terms, contributing additional funds, or exercising a contractual option.

What is the final walkthrough for?

It helps the buyer confirm that the property is in the expected condition and that agreed items remain or work was addressed as required. It is not a replacement for the earlier inspection.

When should buyers confirm wiring instructions?

Before sending funds, confirm instructions directly with the settlement company using a trusted phone number. Treat emailed changes as suspicious until independently verified.

Who keeps the transaction on schedule?

The buyer, seller, agents, lender, settlement professional, inspectors, and other participants each have responsibilities. Experienced agents and organized transaction coordination help everyone understand deadlines and next steps.

The Bottom Line

Going under contract is the start of a coordinated process. Buyers and sellers who understand the steps, protect the deadlines, and communicate early are better positioned to reach the closing table without avoidable surprises.