So, You Survived Due Diligence — Now What?
If you’re breathing a little easier now that the due diligence period is behind you, you’re not alone. But let’s not celebrate too hard just yet. While you’ve passed an important checkpoint, you’re not done until the ink is dry and the keys are in your hand.
Here’s what happens after due diligence — and why it’s just as important to stay focused as you head into the home stretch.
1. Your Earnest Money Becomes Non-Refundable
Once the due diligence period closes, so does your safety net. That earnest money deposit you made? It’s now locked in.
Unless your contract has remaining contingencies (like financing or title), backing out at this point could cost you your deposit. Your agent will help you understand exactly where you stand.
2. The Loan Moves to Final Approval
If you’re using a mortgage, this is where your lender takes over and dives into the final underwriting stage. They’ll verify your financials again, check the appraisal results, and double-check your documentation.
Important reminder: hold off on big purchases, switching jobs, or opening new credit accounts. Your lender is watching — and surprises don’t go over well.
3. Title Review and Insurance Setup
The title company or attorney will verify that the property has no legal issues, like unpaid taxes, liens, or ownership disputes. Once everything checks out, you’ll be asked to purchase title insurance for added protection.
You’ll also need to get homeowners insurance lined up before closing — your lender will require proof of coverage.
4. Appraisal Adjustments (If Needed)
If the home’s appraisal came in lower than expected and you haven’t resolved it yet, this is the time to address it. Solutions might include:
- Renegotiating the price with the seller
- Bringing extra funds to the table
- Or switching loan programs
If the home appraised at or above the agreed price, you’re good to move forward.
5. You’ll Receive the Closing Disclosure
At least three days before closing, your lender must send you a Closing Disclosure. This document outlines the final terms of your loan, all closing costs, and the amount you need to bring to the table.
Compare it carefully with your initial Loan Estimate. Your lender and agent can walk through it with you to flag any differences or errors.
6. Schedule the Final Walk-Through
Usually 24–48 hours before closing, your agent will walk through the home with you one last time. The goal? To confirm that it’s still in good condition and that any negotiated repairs have been completed.
This isn’t a new inspection — just a final check-in before funds and keys are exchanged.
7. Prepare for Closing Day
You’re almost there. Now’s the time to:
- Schedule your closing appointment
- Arrange your down payment and closing cost transfer (via wire or cashier’s check)
- Bring your ID and any final paperwork
- Confirm who gives you the keys and when
Each state handles closings a little differently, but your agent and lender will guide you through it.
After Closing: It’s Official
Once everything is signed and funds are transferred, the home is yours. You may receive the keys the same day or the next — depending on local recording timelines.
Now you can change the locks, update your address, and finally plan where the couch goes (again).
FAQ
Q: Can I cancel the purchase after due diligence?
Only if there’s a remaining contingency. Otherwise, you may forfeit your earnest money.
Q: Is the final walk-through required?
Not legally — but skipping it is risky. Always confirm the home is move-in ready.
Q: When do I wire my closing funds?
Your lender or title company will give you exact instructions, typically 1–2 days before closing.
Q: What if something changes at the last minute?
Tell your lender and agent immediately. Some issues can be resolved or rescheduled.
Final Thoughts
Exiting the due diligence phase is a big win — but don’t let your guard down. You’re entering the most paperwork-heavy, detail-sensitive part of the transaction.
Stay organized. Ask questions. Stick to the plan. And let your team guide you every step of the way.
Next stop: homeownership.
