A Step-by-Step Guide to the Pending Process in Minnesota & Western Wisconsin

So, you’ve gotten your offer accepted — congratulations! That’s one of the biggest milestones in your home-buying journey. But what happens next? Once you’re officially under contract, you’ve entered what’s called the pending process, and this stage takes you from an accepted offer all the way to closing day.

There are five key steps that every buyer should understand to keep things smooth and stress-free. Let’s break them down 👇

1️⃣ Earnest Money: Your Good-Faith Deposit

Once the contract is executed and delivered to all parties, the first step is turning in your earnest money.
This deposit shows the seller that you’re serious about purchasing the home.

💰 Typical amount: Around 1% of the purchase price — though this is completely negotiable.
🏦 Where it goes: Your check is usually deposited into the listing company’s trust account, where it stays until closing.
✅ Good news: That money gets credited back to you at closing.

2️⃣ Home Inspection: Understanding What You’re Buying

Next comes the home inspection — one of the most important parts of the process.

You’ll have a set number of days (typically 3–7 days) to schedule and complete your inspection. A licensed inspector will review the condition of the home from top to bottom — structure, roof, foundation, mechanicals, plumbing, and more.

After the inspection, you’ll decide whether to:

  • Move forward knowing more about the home’s condition,

  • Negotiate repairs or concessions, or

  • Cancel the contract if there are significant issues.

👉 Note for Wisconsin buyers: The inspection process works a bit differently. Depending on your contract, the seller might have the right to correct certain issues before you can cancel.

3️⃣ The Appraisal: Confirming Value for Your Lender

Once the inspection is complete, your lender will order an appraisal.

📏 The appraiser measures the property and compares it to recent nearby sales. Their goal? To confirm that the price you’ve agreed to pay is in line with current market values — so neither you nor your lender is overpaying.

💸 Cost: Typically ranges from $500 to $750, paid upfront by the buyer.

In most transactions, the appraisal is one of the biggest hurdles after inspection. A smooth appraisal keeps your loan on track for final approval.

4️⃣ Title Work: Ensuring Clear Ownership

While you’re handling inspections and appraisals, the title company begins their work behind the scenes.

They research the property’s ownership history to ensure there are no unpaid liens, judgments, or claims against it. The goal is to deliver what’s called “clear title” — meaning you could sell the home the very same day you close if you wanted to.

Title work is one of those invisible but essential steps that protects your investment.

5️⃣ Final Underwriting & Walkthrough: The Finish Line

Once your lender has the appraisal and all required documentation, your loan moves into final underwriting for approval.

Then, just before closing, you’ll complete your final walkthrough — a quick visit to make sure:

  • The home’s condition hasn’t changed since your offer was accepted,

  • Any agreed-upon repairs were completed, and

  • There’s been no damage or vandalism.

Once that’s done, it’s time to close, sign the documents, and grab your new keys! 🔑

💬 Final Thoughts

The pending process can feel overwhelming, but when you understand each step, it becomes much smoother and more predictable.

 

If you’re buying or selling a home in Minnesota or Western Wisconsin, I’d love to walk you through this process personally.
Whether it’s understanding your next move, navigating inspections, or preparing to close, I’m here to help.

 

👋 All my best to you and yours,
– Travis Anderson, Realtor® | Minnesota & Western Wisconsin