(What Happens Between Accepted Offer and Closing)
Buying your first home is an exciting milestone. But in New York, the process between getting your offer accepted and sitting down at the closing table can feel overwhelming. The state’s real-estate laws are complex, and every step requires precision, communication, and proper legal guidance.
At LumaLex Law, we help first-time homebuyers navigate this process with confidence. This guide explains what happens after your offer is accepted and what to expect before you officially become a homeowner.
Step 1: Offer Accepted
Once a seller accepts your offer, the property is not yet considered “under contract.” The deal is not binding until both parties sign a formal contract prepared and reviewed by their attorneys.
In New York, verbal agreements are not enforceable in real-estate transactions. The accepted offer is simply the start of the legal process.
Step 2: Hire an Experienced Real-Estate Attorney
In New York, attorneys play a central role in real-estate closings. Each party, buyer and seller, has their own attorney. For first-time buyers especially, this step is critical.
Your attorney’s job is to:
- Review the contract with the goal of protecting your interests.
- Negotiate terms such as contingencies, repair credits, or closing timelines.
- Resolve title issues and coordinate with your lender, title company, brokers, and the seller’s attorney to ensure a smooth closing.
- Explain each document so you understand what you are signing, and ensure that the funds exchanged at closing are accurate.
Working with an attorney like LumaLex Law early in the process helps prevent delays and costly mistakes later.
Step 3: Contract Review and Signing
The seller’s attorney typically prepares the first draft of the contract. Your attorney then reviews it, explains the terms, and negotiates any necessary changes. Common provisions include:
- Purchase price and deposit amount
- Closing date and timelines for contingencies
- Inspection and mortgage contingencies
- Condition of the property and what the sale includes (e.g. fixtures or appliances)
Once both sides agree, the buyer signs first and delivers the earnest money deposit (usually 5% to 10% of the purchase price). The seller then signs the contract, at which point it becomes legally binding.
Step 4: Conduct a Home Inspection
Most buyers schedule an inspection before signing the contract, but in competitive markets, some offers are accepted before inspections occur. It is important not to skip this step. We have seen buyers forgo their right to inspect the property because they are eager to close or because they want their offer to be more competitive over other potential buyers, but this can lead to costly surprises after closing has occurred, leaving buyers to bear any unforeseen financial burden alone.
A licensed home inspector evaluates the property’s condition and identifies potential issues such as structural damage, roof problems, or electrical hazards. The report gives you the opportunity to:
- Request repairs or credits from the seller
- Renegotiate the price
- Withdraw from the deal if major problems arise (depending on the contingency terms)
LumaLex Law often reviews inspection reports with clients to ensure requests are made properly and documented in writing.
Step 5: Apply for Your Mortgage (if applicable)
Once the contract is signed, most buyers immediately begin or finalize their mortgage application. If you were pre-approved, this step should move quickly.
Your lender will require, among other documents:
- Financial statements and tax returns
- Credit verification
- The signed purchase contract
- An appraisal of the property
The appraisal determines the fair market value of the home. If it comes in lower than the purchase price, your lender may reduce the loan amount, requiring you to renegotiate with the seller or provide a larger down payment.
Your attorney coordinates with your lender working to ensure all documents meet the bank’s requirements for closing.
Step 6: Title Search and Title Insurance
Your attorney or title company performs a title search to confirm that the property has a clear title. This means verifying that there are no outstanding liens, judgments, unpaid taxes, or ownership disputes. This step is performed simultaneously with Step 5 to avoid delays.
Once the title is clear, you will purchase title insurance. This protects you and your lender if any title issues arise after closing. In New York, title insurance is a one-time cost paid at closing.
LumaLex Law reviews the title report and attempts to resolve any concerns before approving the transaction to move forward.
Step 7: Secure Homeowner’s Insurance
Most lenders require proof of homeowner’s insurance before closing. This policy protects both you and the bank in the event of damage to the property.
Your attorney works to ensure the policy meets your lender’s requirements and that coverage is active on the closing date.
Step 8: Obtain the Mortgage Commitment
Once your lender has completed its review, it will issue a mortgage commitment letter. This is a formal approval that outlines the loan amount, interest rate, and terms.
The mortgage commitment usually includes conditions that must be satisfied before closing, such as providing updated financial documents or confirming insurance coverage.
If you cannot meet these conditions within the agreed-upon timeframe, your attorney can request an extension to avoid losing your deposit.
Step 9: Prepare for Closing
As closing approaches, your attorney coordinates all final details. This includes:
- Scheduling the final walkthrough to confirm the property’s condition
- Reviewing the closing disclosure, which outlines all costs and fees
- Confirming that the title is clear and the lender is ready to fund the loan
- Arranging the transfer of funds for your down payment and closing costs
You will receive a breakdown of all closing costs, which may include:
- Lender fees and title charges
- Property taxes and insurance premiums
- Recording and transfer fees
- Attorney’s fees
Your attorney works to make sure every number is accurate and that you understand each charge before you proceed.
Step 10: The Closing
The closing is the final step and should be a smooth process if all preparatory work leading up to the closing has been completed properly. In New York, closings are typically attended by the buyer, seller, their attorneys, the lender’s representative, the title company and the brokers.
At the closing, you will:
- Review and sign all mortgage and transfer documents
- Pay your remaining balance and closing costs
- Receive the keys and finalized title documents
Once funds are disbursed and the deed is recorded, you officially own your new home.
LumaLex Law stays involved through the final step to confirm all documents are executed properly and that ownership is legally transferred without issue.
Typical Timeline for a New York Home Purchase
The average time between an accepted offer and closing in New York is about 60 to 90 days. The exact timing depends on factors such as:
- How quickly financing is approved
- Whether inspection or title issues arise
- Scheduling availability for all parties involved
Your attorney plays a key role in keeping the process on track and resolving any delays that may occur.
Common Mistakes First-Time Buyers Should Avoid
Even small missteps can cause delays or financial loss. Here are a few common mistakes first-time buyers should watch for:
- Failing to hire an experienced real-estate attorney early
- Skipping the inspection step
- Making drastic financial changes during the mortgage approval period
- Overlooking title issues or unpaid property taxes
- Skipping the final walkthrough before closing
- Ignoring insurance requirements or lender deadlines
Having a lawyer who focuses on New York real-estate law helps you avoid these pitfalls.
Why Legal Guidance Matters
Buying a home in New York involves multiple contracts, disclosures, and legal documents. Each has long-term implications for your financial future. While real-estate agents manage negotiations before contract, only an attorney can review and interpret the legal language that binds the transaction.
LumaLex Law provides clear guidance throughout the process. Our attorneys explain every step, flag potential risks, and work to make sure your purchase proceeds smoothly. Whether you are buying a co-op in Manhattan, a condo in Brooklyn, or a single-family home upstate, we help you protect your investment.
Take the Next Step with LumaLex Law
Buying your first home should be exciting, not confusing. At LumaLex Law, we help first-time homebuyers understand every stage of the process, from accepted offer to closing, so you can move forward with confidence.
Our attorneys guide you through contract review, financing, title clearance, and closing preparation. We work to make sure your rights are protected and that your home purchase is legally sound.
If you are preparing to buy your first home in New York, contact LumaLex Law today to schedule a consultation. Let our team help you close on your home the right way.
