Vintage American Realty
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Lesson 11: Contract to Closing - Navigating the "Hurry Up and Wait" Phase
Welcome Back, Soon-to-Be Homeowners!
The Reality of Being "In Contract"
Welcome back to Home Buying 101! I'm Tom Brady, and you're now in what I call the "hurry up and wait" phase of your home buying journey. You're in contract, you've completed your inspection, and now the behind-the-scenes work begins.

Just because you sign the contract doesn't mean you're in contract – they can still take a better offer. Until the seller signs you're not truly locked in. This is why it's crucial to stay engaged and responsive during this phase.
Understanding the Contract-to-Closing Timeline
Timeframe: average 60-90 days on Long Island. Here's what that timeline typically looks like:
Weeks 1-2: Attorney Review and Contract Finalization
01
Contract Preparation
Seller's attorney draws up the contract from the initial offer sheet and any inspection issues
02
Contract Review
Seller's attorney send the contract to the buyer's attorney for review
03
Negotiation
Contract modifications and negotiations
04
Signing Order
Buyer signs first, then seller
05
Final Execution
Final contract execution by all parties
06
Official Status
You're truly "in contract" once both parties have signed
Weeks 2-4: Initial Processing
Mortgage Application
Formal mortgage application and document submission
Title Search
Title search ordered and in progress
Insurance
Homeowner's insurance shopping and selection
Survey
Survey ordered (if required by lender and no recent survey exists)
Weeks 4-6: Appraisal and Underwriting
Appraisal
Bank appraisal scheduled and completed
Underwriting
Mortgage underwriting begins in earnest
Title Review
Title search results reviewed
Issue Resolution
Any title issues identified and resolution begun
Weeks 6-8: Final Approvals
Mortgage Commitment
Mortgage commitment issued (hopefully!)
Title Resolution
Title issues resolved
Insurance Binder
Homeowner's insurance binder obtained
Closing Coordination
Closing date coordination begins
Weeks 8-12: Closing Preparation
Final Mortgage Approval
Final mortgage approval and "clear to close"
Final Walkthrough
Final walkthrough scheduled with agent
Document Preparation
Closing documents prepared
Moving Arrangements
Moving arrangements finalized
Major Milestones: Your Roadmap to Success
The Bank Appraisal: Protecting the Lender's Investment
The bank will send an appraiser to ensure the home is worth the price you're paying. This isn't negotiable – every lender requires an appraisal to protect their investment (if the down payment is large enough some lenders will waive the appraisal).
What the Appraiser Does:
Measures and Photographs
The interior and exterior of the property
Evaluates Condition
Quality of construction and overall property condition
Researches Comparables
Similar sales from the last 6 months
Analyzes Market
Current conditions and neighborhood trends
Provides Value Opinion
Based on their comprehensive findings
What Happens if the Appraisal Comes in Low:
Scenario 1: Appraisal Matches or Exceeds Contract Price
No Issues
The transaction proceeds as planned
Lender Satisfied
That the property value supports the loan
Move Forward
With other closing preparations
Scenario 2: Appraisal Comes in Below Contract Price
Lender will only finance the appraised amount
You'll need additional cash to make up the difference
Options include:
Pay the Difference
Cover the gap with additional cash
Renegotiate
Ask seller to reduce the purchase price
Cancel Contract
If you have an appraisal contingency
Challenge Comps
Not always successful

Example: If you're buying a house for $500,000 but it appraises for $480,000, you'll need an extra $20,000 in cash or the seller needs to reduce the price.
Securing Your Mortgage Commitment: The Big Hurdle
You'll work with your lender to finalize all your paperwork to get the official "clear to close."
This is often the most stressful part of the process because so many factors are outside your control.
What Your Lender is Doing:
Verifying Income
And employment (again)
Reviewing Assets
And source of down payment
Ordering Appraisal
And reviewing the results
Underwriting Loan
According to their guidelines
Preparing Documents
For closing
What You Need to Do:
Stay in close contact with your lender
Provide requested documents promptly to avoid delays
Don't make major financial changes
New jobs, large purchases, new debt, close credit cards
Respond immediately
To any underwriter requests
Keep your financial situation stable
Until closing
Maintain open communication
With your loan officer
Common Document Requests During Underwriting:
  • Updated pay stubs and employment verification
  • Bank statements for all accounts
  • Explanation letters for large deposits or unusual transactions
  • Tax returns or tax transcripts
  • Insurance binder and proof of coverage
  • Additional asset documentation if required
The Title Search and Resolution Process
Your attorney ensures the seller has the legal right to sell the house and there are no liens. This is especially important on Long Island with its long history and complex property ownership patterns.
What the Title Search Reveals:
Current Ownership
And how the seller acquired the property
Outstanding Mortgages
That must be paid off at closing
Liens or Judgments
Against the property or owners
Easements
That might affect your use of the property
Municipal Violations
Or open permits
Survey Issues
Or boundary disputes
Common Long Island Title Issues:
Old mortgages
Not properly discharged from previous sales
Estate complications
From inherited properties
Municipal liens
For unpaid taxes or violations
Contractor liens
For unpaid work
Divorce decree issues
Affecting ownership
Survey discrepancies
From previous transactions
How Title Issues Get Resolved:
01
Seller's Responsibility
To provide clear title
02
Attorney Coordination
Between attorneys to resolve problems
03
Debt Payment
Of outstanding debts or liens at closing
04
Certificate Acquisition
Obtaining required certificates or permits
05
Survey Updates
Or boundary agreements if needed
Homeowner's Insurance: Your Protection
Order homeowner's insurance early and ensure coverage begins on closing day. You cannot close without proof of insurance, and getting coverage can sometimes take time.
What You Need to Secure:
Homeowner's Policy
Covering the replacement cost of the home
Insurance Binder
Showing coverage effective on closing day
Proof of Payment
For the first year's premium
Mortgagee Clause
Naming your lender as additional insured
Insurance Considerations for Long Island:
Flood Insurance
If the property is in a flood zone (required by lenders)
Wind/Hurricane Coverage
For coastal properties
Adequate Coverage Limits
For high property values
Deductible Amounts
That work for your budget
Personal Property Coverage
For your belongings
Shopping for Insurance:
Get Multiple Quotes
From different companies
Compare Coverage
Options, not just price
Ask About Discounts
Bundling, security systems, etc.
Understand Deductibles
And coverage limits
Choose a Company
With good claims service reputation
Working with the Title Company
What the title company does:
  • Coordinates the closing with all parties
  • Prepares closing documents and settlement statements
  • Handles the money collecting funds and distributing payments
  • Issues title insurance protecting your ownership
  • Records the deed and mortgage after closing
  • Ensures proper transfer of ownership
Title Insurance Protection:
  • Owner's policy protects your ownership rights
  • Lender's policy protects the mortgage company
  • Coverage for title defects discovered after closing
  • Legal defense if ownership is challenged
  • Financial protection for covered title problems
Staying Financially Stable During the Process
Critical Don'ts During Contract to Closing:
Don't Change Jobs
Or income sources
Don't Make Large Purchases
Cars, furniture, vacations
Don't Apply for New Credit
Cards or loans
Don't Move Money
Between accounts without explanation
Don't Make Unusual Deposits
Without documenting the source
Why These Matter:
Lenders Reverify
Your financial situation before closing
Any Changes
Can delay or derail your loan approval
Debt-to-Income Ratios
Must remain within guidelines
Asset Verification
Must match your original application
Employment Changes
Can restart the entire approval process
Setting the Closing Date: Coordination is Key
Coordinating with the bank, attorneys, and sellers to set a closing date that works for everyone:
Factors That Affect Closing Date:
  • Mortgage commitment timeline and final approval
  • Title issue resolution and clear title delivery
  • Insurance binder availability and effective date
  • Seller's timeline and their purchase/move situation
  • Attorney availability and document preparation time
  • Your schedule and moving arrangements
Typical Closing Date Process:
  1. Initial target date set in the contract
  1. Adjustments made plus or minus 30 days normally as timeline becomes clearer
  1. Final confirmation once all approvals are in place
  1. Closing scheduled with title company or attorney's office
  1. All parties confirmed and documents prepared
Preparing for Moving Day
Start planning early for your move and transition:
Moving Logistics:
Get Quotes
From moving companies
Schedule Your Move
For after closing (never before!)
Arrange Time Off
Work for closing and moving
Coordinate Utilities
Transfer to your name
Plan for Temporary Housing
If there are delays
Closing Day Preparation:
Arrange for Funds
Needed at closing (certified check or wire transfer)
Prepare Identification
And any required documentation
Plan Your Schedule
Closings can take 1-3 hours
Arrange for Keys
And garage door openers
Understand Possession
Timing and any walk-through requirements
Communication is Critical
Staying Connected with Your Team:
Your Agent
Should coordinate updates from all parties
Your Lender
Should provide regular status updates
Your Attorney
Should handle title and contract issues
Insurance Agent
Should ensure proper coverage timing
Moving Company
Should coordinate timing with closing
Red Flags During This Phase:
Poor Communication
From any team member
Missed Deadlines
Without explanation or new timelines
Unusual Document Requests
Or sudden requirement changes
Title Issues
That seem insurmountable or very expensive
Appraisal Problems
That create significant financing gaps
Problem-Solving Common Issues
When Things Go Wrong:
Mortgage Delays:
  • Stay in close contact with your lender
  • Provide documents immediately when requested
  • Consider backup lenders if problems persist
  • Communicate with seller about potential delays
  • Understand your contract rights and deadline extensions
Title Problems:
  • Work with your attorney to understand the issues
  • Determine costs of resolution and who pays
  • Consider title insurance coverage for certain issues
  • Evaluate deal-breakers vs. manageable problems
  • Negotiate solutions with the seller
Appraisal Issues:
  • Review the appraisal carefully for errors
  • Consider a second opinion if you believe it's inaccurate
  • Negotiate with seller for price reduction
  • Evaluate your options for additional cash
  • Understand your contingency rights in the contract
Final Mortgage Approval and Clear to Close
The last and biggest hurdle is getting your final mortgage approval:
What "Clear to Close" Means:
All Conditions
Have been satisfied
Underwriter
Has given final approval
Loan Documents
Are prepared and ready
Funding
Is approved and available
You Can Proceed
To closing with confidence
Getting to Clear to Close:
  • Respond immediately to any final requests
  • Verify employment one last time (usually day before closing)
  • Confirm insurance is in place and paid
  • Prepare closing funds in the required form
  • Stay financially stable until after closing
Your Action Plan for Contract to Closing
Week by Week Checklist:
1
Weeks 1-2:
  • Select attorney and finalize contract
  • Submit all mortgage documents requested by lender
  • Begin shopping for homeowner's insurance
  • Stay financially stable no major changes
2
Weeks 3-4:
  • Respond promptly to lender document requests
  • Get homeowner's insurance quotes
  • Schedule appraisal if not already done by lender
  • Monitor title search progress through attorney
3
Weeks 5-6:
  • Complete appraisal and address any issues
  • Finalize homeowner's insurance selection
  • Review title search results with attorney
  • Continue mortgage underwriting cooperation
4
Weeks 7-8:
  • Obtain insurance binder with proper effective date
  • Resolve any title issues identified
  • Receive mortgage commitment (hopefully!)
  • Begin closing date coordination
5
Weeks 9-12:
  • Get final mortgage approval and clear to close
  • Schedule final walkthrough
  • Prepare closing funds and required documents
  • Coordinate moving arrangements
  • Prepare for closing day!
Wrapping Up: Almost There!
The contract-to-closing phase can feel frustrating because so much is happening behind the scenes while you wait. But remember, each step is bringing you closer to homeownership.
Stay engaged, stay responsive, and stay positive. Most deals that make it this far do close successfully, but your cooperation and prompt responses to requests are crucial for staying on schedule.
The key is maintaining momentum while being patient with the process. Just because you sign doesn't mean you're in contract until the seller also signs, but once you're truly in contract, the odds are in your favor for a successful closing.
Looking Ahead
In our next lesson, we'll cover the final walkthrough – the last step before closing and officially become a Long Island homeowner.
But first, focus on getting through this phase successfully. Every day brings you closer to holding those keys!
Thanks for watching, and remember – patience and responsiveness during this phase will pay off at the closing table!

Next up: The final walkthrough and closing day – the finish line is in sight!
Thomas Brady SFR, e-PRO, SRES, BPOR,C_REPS
Licensed Associate Real Estate Broker/ Director of Operations
Notary Public, Retired N.Y.P.D. Lt., U.S. Air Force Veteran
Vintage American Realty LLC.
1551 Montauk Hwy. Suite E
Oakdale, NY 11769
631-682-8660