Once the contract becomes effective, the transaction accelerates quickly.

In addition to an EMD deadline commonly negotiated at approximately three to five days, a financed buyer usually has an early deadline to formally apply for the property-specific loan. Under the commonly used Florida Realtors/Florida Bar AS IS contract, the deadline is the number of days written into the agreement—or five calendar days after the Effective Date if that space is left blank.

The signed contract controls. Do not assume your deadlines match another buyer’s deadlines.

The first 10 to 14 days can be the busiest part of the purchase. During that short period, you may need to:

• Deliver the EMD
• Complete the formal loan application
• Submit financial documents
• Pay lender and appraisal fees
• Schedule inspections
• Obtain insurance quotes
• Review inspection results
• Respond to lender questions
• Make decisions before the inspection deadline

Be prepared to answer calls, monitor email and provide requested documents promptly.

After the inspection period ends, the transaction may feel as though it has slowed down considerably. Compared with the first 10 to 14 days, it usually has—but that quieter pace can be an illusion.

A great deal may still be happening in the background:

• The lender is processing documents, underwriting the loan and tracking conditions
• The appraisal is being ordered, completed or reviewed
• The title company is searching title, clearing requirements and preparing for closing
• The insurance professional is confirming coverage and underwriting requirements
• Survey, association and municipal information may be ordered or reviewed
• The seller may be completing agreed repairs
• Inspectors or contractors may be preparing reinspections or documentation
• The agents or brokers are monitoring deadlines and coordinating the parties

You will still have tasks, questions and documents to complete. They may simply arrive less frequently than they did during the first two weeks.

Do not confuse “less hectic” with “nothing is happening.” Stay available, continue checking your messages and respond promptly when the lender, title company, agent or another transaction professional needs something.

You may already have a preapproval, but that does not necessarily mean you have formally applied for financing on this particular property.

Contact the lender as soon as the contract is effective. The lender will need the signed contract, property address, price, loan amount and closing date. The application should match the financing terms written into the contract.

Chapter 2 explained why your agent or broker and lender should coordinate before an offer is submitted. Their communication must continue after acceptance.

They should appropriately coordinate:

• Confirmation that the application was completed on time
• The appraisal and Loan Approval Period
• Property conditions affecting the loan
• Lender- or insurance-required repairs
• The proposed closing date
• Delays that could threaten a deadline

Privacy rules may limit the lender’s ability to share personal financial details, but appropriate transaction-status updates can still be provided with your authorization. You should not be forced to serve as the only messenger.

The lender may request:

• Identification
• Pay statements and employment verification
• W-2s, tax returns or business records
• Bank and investment statements
• Proof of EMD and closing funds
• Explanations for large deposits or credit inquiries
• Homeowners-insurance information
• Additional underwriting documents

Send complete, readable documents. A partial screenshot or missing page may not be acceptable.

Until after closing, do not:

• Finance a vehicle
• Open or close credit accounts
• Purchase furniture on credit
• Change jobs without consulting the lender
• Co-sign a loan
• Transfer large sums without explanation
• Deposit unexplained cash
• Spend money reserved for closing
• Pay off debt unless directed by the lender

Lenders may recheck credit, employment, bank balances and debts shortly before closing.

Before making any unusual financial move, call your lender.

Once the inspection period is complete and the purchase is moving toward closing, begin finalizing the services the property will need. This may include shopping for or arranging:

• Homeowners insurance
• Flood insurance when applicable
• Electricity
• Water and sewer
• Trash service
• Internet
• Cable or other communications services
• Security monitoring

Schedule utilities and services to begin on the closing or possession date so coverage and essential services are not interrupted. Confirm insurance requirements and effective dates with your lender and insurance professional.

This is not the time to shop for anything else. No car. No furniture. No appliances on credit. No new accounts. Nothing.

Do not make a financial decision without first speaking with your lender. Even an action that sounds responsible—such as paying off a credit card, closing an account or moving money between banks—can change your credit profile, reduce documented closing funds or create a transaction the underwriter must investigate.

Some utility or communications providers may perform a credit check or require a deposit. Ask what will be required before authorizing it, and consult your lender if the arrangement could create a credit inquiry, new account or substantial payment.

The safest rule until the transaction has closed is simple:

If money, credit, employment, debt or a new contract is involved, call your lender first.

A financing contingency does not allow the buyer to apply and then wait passively. The standard financing provision requires good-faith and diligent effort, including timely delivery of requested information and payment of appraisal and other applicable charges. A failure to make diligent effort may be considered a buyer default.

Most buyers receive a conditional approval before final approval. Conditions may include updated statements, employment verification, insurance, appraisal, repair verification or proof that the EMD cleared.

Conditional approval is progress, but it is not permission to stop responding. Continue satisfying conditions until the lender confirms the loan is clear to close.

The appraisal is primarily for the lender. It helps determine whether the property provides acceptable security for the loan.

• The inspection focuses on condition.
• The appraisal focuses primarily on value and lender requirements.

Pay the appraisal fee promptly so it can be ordered without delaying the transaction.

A low appraisal does not automatically cancel the contract or require the seller to reduce the price. Depending on the contract, loan program and deadlines, the parties might:

• Renegotiate the price
• Have the buyer contribute additional cash
• Combine a price change with additional cash
• Challenge the appraisal with relevant supporting information
• Obtain another appraisal when permitted
• Cancel under an applicable contractual right
• Proceed despite the difference

FHA and VA transactions may include additional appraisal language and protections. Your lender should explain the loan implications, while your agent or broker reviews comparable sales and negotiating options.

The deadline to apply and the deadline to obtain Loan Approval are different.

Before the Loan Approval Period expires, the buyer may need to provide written notice concerning approval or the decision to proceed. Under the commonly used financing provision, failing to provide the required notice can result in the transaction proceeding as though it were a cash purchase without a financing contingency. That could put the deposit at risk if financing later fails.

Begin discussing this deadline well in advance—not on the day it expires.

A strong preapproval helps you shop and structure an offer, but the lender must still approve the buyer, the property and any required appraisal. Approval can be affected by new debt, missing documents, insurance, property condition or changes discovered during underwriting.