Understanding the key deadlines and dates in the closing process is essential for a smooth real estate transaction. Being aware of these important milestones helps buyers and sellers stay organized and meet contractual obligations.
Initial Contract and Earnest Money
The closing process begins once the purchase agreement is signed. Typically, the buyer deposits earnest money within a specified timeframe, often within 1-3 days after contract acceptance. This deposit shows good faith and is credited toward the purchase price at closing.
Inspection and Appraisal Deadlines
Buyers usually have a set period, often 10-15 days, to complete inspections and request repairs. Additionally, an appraisal must be completed within a designated timeframe to ensure the property's value supports the loan amount. Missing these deadlines can delay or jeopardize the closing.
Loan Approval and Contingency Removal
The buyer must secure loan approval by a specified date, often 30-45 days after contract signing. Contingencies related to financing, inspection, and appraisal are typically removed during this period. Failure to meet these deadlines may result in contract termination or renegotiation.
Final Walkthrough and Closing Date
The final walkthrough usually occurs 24-48 hours before closing. It allows the buyer to verify the property's condition. The closing date is scheduled after all conditions are satisfied, and the parties prepare for the transfer of ownership. This date is often set 30-60 days from the initial contract signing.