The Closing Process
The Closing Process —
The Big Picture
What actually happens in those 30–45 days between "under contract" and "here are your keys."
You found the house. Your offer got accepted. You're under contract. Now what? For most buyers, the 30–45 days that follow feel like a fog — emails, documents, phone calls, and decisions they've never encountered before. Here's the step-by-step truth.
Inspections & Earnest Money
The moment you go under contract, the clock starts. In most Tennessee purchase agreements, you have a defined inspection period — typically 7 to 10 days — to conduct all due diligence on the property.
What the Home Inspection Covers
A licensed home inspector will spend 2–4 hours at the property doing a thorough walkthrough. You'll receive a full written report — often 40–80 pages — with photos and descriptions of every issue found, categorized by severity.
- Roof, attic, and gutters
- Foundation and structural components
- HVAC systems (heating, ventilation, air conditioning)
- Plumbing and water heater
- Electrical panel, outlets, and fixtures
- Windows, doors, and insulation
- Crawl space (very common in Tennessee homes)
Earnest Money Deposit
Simultaneously, your earnest money deposit is due — typically within 1–3 days of mutual acceptance. This is usually 1–2% of the purchase price, deposited with the title company or escrow holder as a show of good faith.
If the deal falls apart for a non-contingency reason, you may forfeit this deposit. If it fails due to a covered contingency — like a failed inspection — you typically get it back.
Repair Negotiations & Appraisal Ordered
After your inspection report comes in, you have choices. You can accept the property as-is, request repairs, ask for a price reduction, or request a seller credit toward closing costs. Your agent will help you draft an Inspection Repair Addendum.
In a competitive market like Nashville, buyers often ask for credits rather than actual repairs — it's faster and avoids disputes about the quality of workmanship.
The Appraisal Is Ordered
While repair negotiations are underway, your lender orders a professional appraisal. An appraiser — independent from your lender — visits the property and produces a valuation report based on recent comparable sales ("comps") in the area. The lender will not finance more than the appraised value.
"If the appraisal comes in lower than your purchase price, you'll need a plan — and I'll help you build one before it ever gets to that point."
What Is an Appraisal Gap?
An appraisal gap occurs when the appraised value comes in lower than your contracted purchase price. For example: you're under contract at $425,000 but the appraisal comes in at $410,000. Your lender will only finance based on $410,000. You have three options:
- Renegotiate the price down to the appraised value
- Pay the $15,000 difference out of pocket ("covering the gap")
- Walk away and receive your earnest money back (if you have an appraisal contingency)
Appraisal Completed. Lender Reviewing.
By week three, the appraisal report has come back and your loan file is in the hands of the underwriter — the most critical (and often most nerve-wracking) phase of the mortgage process.
What Underwriters Are Looking For
The underwriter's job is to verify everything: your identity, your income, your assets, your employment, and that the property itself meets the lender's guidelines.
- Employment status (often a verbal verification with your employer)
- Pay stubs, W-2s, and tax returns (2 years)
- Bank statements (2–3 months)
- Credit score and debt-to-income ratio
- Source of down payment and closing funds
It's normal to receive a "conditions" list — requests for additional documentation. Respond to every request within 24 hours. Delays in this phase are the #1 reason closings get pushed back.
- Change jobs or switch from W-2 to self-employed income
- Make large deposits without a paper trail
- Open new credit cards or lines of credit
- Finance a car, furniture, or appliances
- Co-sign a loan for anyone
- Miss calls or emails from your lender
Clear to Close Issued.
"Clear to Close" — those three words are what every buyer is waiting for. It means underwriting has fully approved your loan and all conditions have been satisfied. You are cleared for the closing table.
What Happens After CTC
- Your closing date is confirmed with the title company
- You receive your Closing Disclosure (CD) — at least 3 business days before closing
- You schedule a final walkthrough of the property
- You wire your closing funds to the title company
Understanding the Closing Disclosure
The Closing Disclosure is a 5-page document itemizing every single cost: loan terms, monthly payment, closing costs, prepaid property taxes, homeowner's insurance, and your total cash-to-close. Compare it carefully to the Loan Estimate you received at application. Call your lender immediately if anything looks different.
- Wire fraud targeting homebuyers is common and growing. Always call your title company at a number from their official website — never from an email — before wiring any funds.
- Never wire money based on email instructions alone. Every time. No exceptions.
Sign. Wire. Get Your Keys.
Closing is typically a 60–90 minute appointment at the title company. You'll sign a large stack of documents — sometimes 100+ pages. Here's what to bring:
- Government-issued photo ID (driver's license or passport)
- Cashier's check for remaining costs, if not already wired
- Your checkbook in case of small last-minute adjustments
Once all documents are signed and the title company confirms your wire was received, they record the deed with the county. You'll get a call confirming the recording.
And then: keys.
"The house is yours. Welcome home."
