Once your offer is accepted, you officially go under contract. This is one of the most important phases of the home buying process in Rochester MN, where inspections, financing, and final details are completed before closing.
What “Under Contract” Means
Being under contract means both the buyer and seller have agreed to the terms of the sale.
However, the deal is not final yet.
There are still several steps that must be completed before the home officially closes.
Earnest Money Deposit
Shortly after going under contract, buyers typically submit earnest money.
This is a deposit that shows you are serious about the purchase.
It is usually held by a third party and applied toward your purchase at closing.
Home Inspection Period
The inspection is one of the most critical steps.
During this time:
The home is professionally inspected
Issues or concerns may be identified
Buyers can request repairs or credits
This is your opportunity to fully evaluate the property before moving forward.
Appraisal Process
Your lender will order an appraisal to confirm the home’s value.
The appraisal ensures:
The home is worth the purchase price
The lender can move forward with financing
If the value comes in lower than expected, additional negotiations may be required.
Loan Processing and Underwriting
While inspections and appraisal are happening, your lender continues processing your loan.
This includes:
Verifying financial documents
Reviewing credit and employment
Finalizing loan approval
Staying responsive during this stage is important to avoid delays.
Contingencies and Deadlines
Most contracts include contingencies that must be met within specific timelines.
Common contingencies include:
Inspection contingency
Financing contingency
Appraisal contingency
Missing deadlines can impact your ability to renegotiate or exit the contract.
Final Walkthrough
Before closing, buyers typically complete a final walkthrough.
This ensures:
The home is in agreed condition
Repairs have been completed if applicable
No new issues have occurred
Closing Day
Closing is the final step.
At closing:
Documents are signed
Funds are transferred
Ownership is officially recorded
Once complete, you receive the keys to your new home.
Rochester MN Market Considerations
In a competitive market like Rochester, driven by demand from employers like Mayo Clinic, timelines can move quickly.
Buyers should be prepared to:
Act within deadlines
Stay organized with documentation
Communicate closely with their lender and agent
Frequently Asked Questions
How long does it take to close after going under contract
Most transactions take around 30 to 45 days, depending on financing and contract terms.
Can a deal fall through after going under contract
Yes, issues with inspection, financing, or appraisal can cause a deal to fall through.
What should I do after my offer is accepted
Stay in close communication with your lender and complete all required steps quickly.
Do I need to attend closing in person
This depends on the situation, but many closings can be handled with flexible options if needed.