Getting the call that the seller accepted your offer is exciting. You found the house, put together an offer, negotiated the terms, and the seller said yes.

Congratulations.

But there’s something I usually say right after delivering the good news:

We still have several more hurdles to jump over before the house is yours.

If we had a buyer consultation before you started looking at homes, none of what comes next should be a complete surprise. Understanding the process ahead of time makes buying a home a lot less intimidating.

From attorney review and home inspections to the mortgage, appraisal, title work and final walkthrough, there are still quite a few steps between an accepted offer and getting your keys.

Here’s what happens next.

Your Realtor Is the Quarterback of the Transaction

I like to think of my role in the transaction as the quarterback.

I’m not your attorney, lender, home inspector, appraiser, title agent or insurance agent. Each of those professionals has a specific job to do, and there are questions that need to be answered by them, not by me.

My job is to help you navigate the whole process. I keep track of where we are, what needs to happen next and who needs to be involved. Sometimes that means connecting you with the right professional.

I can give you advice and help you understand your options, but I can’t make the decision for you. It’s not my money. It’s your money, and it’s going to be your house. You’re the one making the decisions.

I’m the quarterback helping move the transaction down the field.

And the first big hurdle after your offer is accepted is attorney review.

What Is Attorney Review in New Jersey?

Once the contract has been signed by all relevant parties, the attorney-review period begins. In New Jersey, the standard real estate contract provides a three-business-day attorney-review period.

Ideally, you’ve already thought about which real estate attorney you want to use before your offer is accepted. If you haven’t, now is the time.

During attorney review, your attorney reviews the contract and may propose changes to protect your interests. The seller’s attorney may do the same for the seller. The attorneys may exchange letters proposing changes to the original contract language, and you’ll discuss those proposed changes with your attorney and decide what you’re willing to accept.

The attorneys continue working through those changes until the two sides reach what is sometimes called a “meeting of the minds.” Once everyone has agreed to the changes, the attorneys officially announce that attorney review has concluded.

Then there’s something else you should know about this process because it can sound pretty alarming when you first hear it.

One of the attorneys may disapprove or “cancel” the original contract during attorney review.

Don’t panic.

That doesn’t necessarily mean your purchase is falling apart. Disapproving the original contract allows the attorneys to make and negotiate the changes they believe are necessary to protect their clients. Once those changes are agreed upon and attorney review is formally concluded, the transaction moves forward.

This is also a good example of why everyone on the team has a specific role. Legal questions about the contract belong with your attorney, not your Realtor.

When Do You Start the Mortgage Application?

Once attorney review is concluded, it’s time to contact your lender and begin the formal mortgage application.

You should already have some type of mortgage qualification before you start seriously looking at homes. There are differences between a pre-qualification, a pre-approval and an underwritten pre-approval, and we’ll cover those in more detail in a separate article.

The important thing to understand here is that none of them is final mortgage approval.

Now that you have a specific property under contract, your lender can move forward with the formal mortgage application for that purchase. The lender still needs to approve both you and the property.

Your lender will guide you through the application and tell you what documentation is needed. Expect requests for employment and income information, bank statements, tax information and other financial records.

When your lender asks for something, get it to them as quickly as you can. There are a lot of moving parts in a real estate transaction, and you don’t want something sitting on your desk to be the reason your transaction gets delayed.

There’s something else that’s very important from this point forward:

Don’t make major changes to your financial picture without talking to your lender.

This is not the time to finance a new car, open new credit cards or buy a houseful of furniture on credit. Buying groceries on an existing credit card is one thing. Taking on significant new debt is something very different.

You’ve worked too hard to get this far. Don’t create a new financial problem before closing.

At the same time, another important part of the transaction is getting underway: the home inspection.

What Happens During the Home Inspection?

Once attorney review is complete, it’s time to schedule the home inspection. Your contract gives you a specific amount of time to complete your inspections, so this is something we want to get on the calendar quickly.

You choose your own home inspector. I can recommend qualified inspectors so you have a place to start, but the decision is yours.

I strongly recommend that you attend the inspection. It’s probably the most thorough lesson you’re ever going to get about your home.

The inspector will spend several hours going through the house and looking at its major systems and components. You’ll have an opportunity to follow along, ask questions and learn about the house you’re buying. The exact amount of time will depend on the size, age and condition of the property.

The inspection period can involve more than just the general home inspection. Depending on the property, you may also have a tank sweep or separate inspections of things such as a pool, fireplace, septic system or a specific structural concern. If the general inspection uncovers something that needs a closer look, you may also want an appropriate specialist to evaluate it.

All of this needs to happen within the inspection timeframes established by your contract, which is another reason we want to get the process started promptly.

And there’s something you should know before the inspection:

Your home inspector may scare you.

That’s not because you necessarily bought a bad house. It’s because the inspector’s job is to find things that are wrong with it.

You may get a report containing page after page of observations. Some of the things your inspector identifies may be urgent or significant. Other items may simply be minor maintenance issues that come with owning a home.

The trick is knowing the difference. I can help you work through the inspection report, put the findings into perspective and determine which issues are important enough to bring to your attorney for advice.

And even when a significant issue is discovered, that doesn’t necessarily mean the deal is over, that you have to walk away or that the seller must repair it. Your attorney can help negotiate the inspection issues with the seller’s attorney to see if an agreement can be reached.

Your contract establishes the inspection period and the procedures for dealing with issues discovered during the inspections. Those deadlines can vary, so I’ll help you keep track of the dates in your contract rather than assuming every transaction follows exactly the same timetable.

How Do You Decide What to Ask the Seller to Fix?

This is where it helps to remember why you wanted the house in the first place.

Not every item in an inspection report carries the same weight. You want to focus on the issues that really matter rather than treating every item in the report as though it has the same importance.

After reviewing the inspection results, you and your attorney may decide to ask the seller to make certain repairs, provide a credit, or you may decide not to ask for anything.

Sometimes a credit can actually be preferable to having the seller make a repair. If something needs to be replaced, you may prefer choosing the contractor, product or appliance yourself rather than having the seller make those choices for you.

But remember:

An inspection request is a negotiation.

The seller doesn’t necessarily have to agree to everything you ask for.

Your attorney handles the legal terms of that negotiation. I’m still involved as your Realtor, helping you understand the situation and your options, but the decisions about what you’re willing to accept belong to you.

If the seller agrees to make repairs, you’ll also have an opportunity before closing to make sure those agreed-upon repairs were completed.

What Is the Title Company Doing?

Title is one of those parts of a real estate transaction that can seem pretty opaque if you’ve never bought a house before.

In plain English, the title work helps make sure the seller can give you clear ownership of the property. The title search looks through the public record for things that could affect that ownership, including liens or other claims against the property.

There may be liens against the property from previous owners’ actions. Those liens may affect the transfer of ownership, and it’s the title company’s job to identify them before closing. Title insurance provides protection against certain covered claims or defects that might be discovered after you take ownership of the property.

Your attorney may recommend a title company, but you can choose the title company you want to use.

The title search is one more hurdle that I’ll help you navigate as your real estate quarterback. If an issue comes up, I’ll help make sure you understand what’s happening and connect you with the appropriate professional to address it.

What Is the Appraisal, and Is It Another Inspection?

No. An appraisal and a home inspection serve two very different purposes.

The inspector is looking at the condition of the house.

The appraiser is developing an opinion of the value of the house for the lender.

The appraiser looks at the property and factors such as its size and condition and compares it with similar properties that have sold recently. From that analysis, the appraiser develops an opinion of value.

The lender wants to make sure it isn’t lending more money against the property than the property can support.

Most of the time, this isn’t a problem.

Sometimes, though, the appraisal comes in below the agreed-upon purchase price. This is sometimes referred to as the property under-appraising.

Suppose you’re under contract to buy a house for $600,000 and it appraises for $500,000. Now there’s a $100,000 appraisal gap that has to be dealt with.

That doesn’t automatically mean the transaction is dead.

Depending on the terms of the contract and the buyer’s financial situation, there may be several ways to address the gap. The seller may agree to reduce the price, the buyer may decide to bring additional cash to the transaction, or the buyer and seller may negotiate some combination of the two.

Years ago, I represented a buyer purchasing a home with VA financing. The purchase price was roughly $260,000, but the property appraised for about $250,000.

We had a $10,000 problem.

Ultimately, the seller made the $10,000 concession necessary for the transaction to move forward. In that case, the seller understood that if the deal fell apart, they would have to wait for another buyer to come along and could be months behind in the process of making their own move.

The important thing to remember is:

A low appraisal isn’t always a deal killer. It’s another problem that may need to be solved.

What Does Mortgage Commitment Mean?

The next step in the mortgage process is called the mortgage commitment.

Think of mortgage commitment as being close to final approval. The lender has reviewed the loan through underwriting and is committing to lend the money, subject to any remaining conditions.

Your contract will include a deadline for obtaining your mortgage commitment. While 30 days after attorney review is common, that deadline can be changed, so the date that matters is the one in your contract.

Mortgage commitment is an important milestone, but it isn’t necessarily the same as the lender giving the final clear-to-close. Continue responding promptly to your lender and providing anything else they request.

Don’t Forget About Homeowners Insurance

Before closing, you’ll also need homeowners insurance in place. Your lender will require homeowners insurance to protect the value of the home.

Your lender and insurance professional will tell you what coverage is required.

Connecting you with possible insurance professionals is another part of my job as your real estate quarterback. I’m not an insurance agent, so I’m not going to tell you what coverage you need. I can help point you toward the appropriate professionals, and you decide who you want to use.

Don’t leave this until closing morning. Get the policy taken care of ahead of time so your lender has what it needs.

What Happens at the Final Walkthrough?

Now you’re getting close.

The final walkthrough normally takes place shortly before closing, often the day of closing or the day before.

Here’s the important distinction:

The final walkthrough is not another home inspection.

You’re making sure the property is in the condition it’s supposed to be in, that agreed-upon repairs have been completed, that the systems and appliances are operating, and that the seller hasn’t damaged the property while moving out or left behind unwanted belongings.

That last one happens more often than you might think.

I once represented a seller who left several filing cabinets and storage containers behind because he thought he was doing the buyer a favor by leaving them “for the buyer to use.”

The buyer didn’t want them.

What should have been a simple closing-day walkthrough turned into an unpleasant last-minute dispute. Eventually, my seller paid someone $300 to remove everything so the buyer could close.

The lesson?

Don’t assume the other party wants your stuff.

The seller is expected to maintain the property in good condition, subject to ordinary wear and tear, and leave it broom clean and free of debris for closing. You’ll also want to make sure the property wasn’t damaged while the seller was moving out.

If something isn’t right at the walkthrough, it needs to be addressed. But the walkthrough isn’t an opportunity to conduct another full inspection or look for reasons to renegotiate the house at the last minute.

It’s the final check that the seller has done what they were supposed to do and the property is in the condition it should be before you sign the closing papers.

What Happens on Closing Day?

Closing day is usually a fun day.

It can be stressful, too, but this is the day you’ve been working toward.

New Jersey closings can be held at an attorney’s office, a real estate office, a title office or any other arranged location.

You’ll need proper identification, and your attorney or title company will give you instructions regarding any funds you need for closing.

Follow those instructions carefully, particularly when wiring money.

Then comes the glamorous part of buying a house:

Signing.

There can be a lot of documents. Mortgage documents, title documents, transfer documents and disclosures. You’ll be signing for a while.

Your attorney and the other professionals handling the closing will walk you through the documents and complete the transfer of funds and ownership.

And then, finally, you get the keys.

How Long Does It Take to Close on a House in New Jersey?

In my experience, a typical financed purchase often takes somewhere around 30 to 60 days from accepted offer to closing.

That’s not a guarantee.

A cash purchase may close much faster. Other types of transactions can take considerably longer. A short sale, for example, is a very different animal and can stretch the process out significantly.

Every transaction is different.

So don’t obsess over how long it took your friend, neighbor or coworker to buy a house. Their transaction isn’t your transaction.

Pay attention to your contract, your deadlines and your team.

My Best Advice After Your Offer Is Accepted

Stay calm.

Stay positive.

And ask questions. Ask a lot of questions.

If you don’t understand something, ask me.

Sometimes I’ll have the answer. Sometimes the right answer is, “That’s a question for your attorney.” Or your lender. Or your inspector. Or your title professional.

Part of being the quarterback is knowing when to hand the ball to someone else.

You don’t need to know everything about buying a house. You have a team of professionals helping you through it.

And when something unexpected happens, there’s something I tell my clients:

“It’s not time to worry yet. I’ll let you know if and when that is.”

Until then, ask questions, stay involved in the process and let your team do its job.

Before you know it, you’ll be holding the keys to your new home.