Getting an accepted offer is a big step forward, but it doesn’t lock you into the purchase just yet. Once your offer is accepted, you’ll typically sign a Purchase and Sale Agreement (PSA) and submit an earnest money deposit, which is held by the title or escrow company while you move through the next phases of due diligence and financing. That deposit shows you’re serious, but your contract will include contingencies i.e. built-in protections that give you time to inspect the property, secure financing, and walk away if needed.

Here’s what to expect once you’re under contract:

Inspection Contingency (typically 5–10 days)

This is your time to inspect the property thoroughly:

  • Uncover hidden issues like roof damage, foundation cracks, plumbing leaks, or outdated electrical.
  • Bring in a contractor early if you’re planning renovations and get estimates upfront.
  • Use the findings to renegotiate price or request seller credits if major issues surface.

Financing Contingency (typically 21–30 days)

This protects you if your lender doesn’t approve the loan.
Even with a pre-approval, things can change during underwriting that affect financing.

This contingency gives you an exit plan if the loan falls through without losing your earnest money deposit.

Appraisal Contingency (often within 21 days)

If the appraisal comes in lower than your offer, this clause allows you to renegotiate or walk away. Without it, you’d have to either:

  • Cover the difference between the loan amount and appraised value, or
  • Risk losing your earnest money.

Title and Legal Review (varies by state)

A title search confirms that the seller legally owns the property and that there are no hidden issues. Watch for:

  • Liens or unpaid taxes
  • Easements or access problems
  • Unresolved permits or ownership disputes

Your attorney or title company will walk you through anything that must be cleared before closing.

Earnest Money Deposit (typically due within 3 days of contract signing)

  • Demonstrates your commitment to the purchase.
  • Held by the title or escrow company until closing.
  • Refundable if you terminate within contingency periods and per contract terms.

Closing Timeline (usually 30–45 days)

This represents the full contract period from offer acceptance to final closing.

Stay proactive:

  • Work closely with your lender, title company, and contractor.
  • Build in buffer time for out-of-state transactions or rehab-heavy projects.
  • Keep documentation and communication organized to prevent last-minute surprises.

Final Thought

Being under contract is your window to inspect, validate, and de-risk the deal.
It’s not just paperwork, it’s a structured opportunity to confirm that the property and terms align with your investment goals.

Use this period to move forward with confidence or walk away with your deposit intact.