From Accepted Offer to Settlement: What Happens When You Buy a Home in Pennsylvania
The steps between an accepted offer and settlement in Pennsylvania, from the deposit and inspections to the appraisal, title search and final walk-through.
By the iNIAZ team · Published · 2 min read
An accepted offer is a big step, but several things have to happen before you receive the keys. Here is the usual sequence in Pennsylvania, where closing is often called settlement.
1. The agreement of sale and deposit
Once both sides sign the agreement of sale, you will usually pay a deposit, held in escrow, that is credited toward your purchase at settlement. The agreement sets deadlines for each step below, so put them on a calendar.
2. Inspections
Most agreements give the buyer a period to inspect the home. A general home inspection is common, and you can add specialized inspections such as radon, wood-destroying insects, sewer line or well and septic testing.
After the inspections, you can accept the property as it is, ask the seller for repairs or a credit, or, within the agreement's terms, end the agreement. Your agent will help you decide what is worth asking for.
3. Mortgage application and appraisal
If you are borrowing, apply promptly and respond quickly to your lender's requests. The lender orders an appraisal to confirm the home's value supports the loan. If the appraisal comes in low, the agreement usually gives you options, which may include renegotiating.
4. Mortgage commitment
When the lender has approved your loan, it issues a commitment, often with conditions to clear before settlement. Keep your finances stable until then.
5. Title search and insurance
A title company or attorney searches public records to confirm the seller can transfer clear title and that liens will be paid at settlement. Owner's title insurance protects you against covered title problems found later.
6. Insurance and utilities
Arrange homeowners insurance before settlement, since your lender will require proof. Schedule utilities to transfer on your settlement date.
7. Final walk-through
Shortly before settlement, visit the home to confirm its condition and that any agreed repairs are done.
8. Settlement
You sign the loan and transfer documents, pay the balance of your down payment and closing costs, and the deed is recorded. Realty transfer tax is paid at this stage; see our transfer tax guide.
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General information, not legal, tax or financial advice. Confirm details that matter to your situation with a qualified professional.