What Happens Between Pre-Approval and Closing? A Minnesota Homebuyer Guide in 2026

May 22, 2026
Ken Graczak
Mortgage News

What Happens Between Pre-Approval and Closing? A Minnesota Homebuyer Guide in 2026

Your offer just got accepted. The excitement is real. So is the uncertainty.

What happens now? Who does what? How long does it take? Ken meets you right there. The good news is that what happens between pre-approval and closing follows a predictable sequence. Every step has a clear owner and a clear purpose. Knowing what to expect makes the whole thing feel manageable rather than mysterious.

Here’s the full walkthrough.

What Happens Between Pre-Approval and Closing – The Short Version

After an offer is accepted, the buyer goes through lender selection, disclosure signing, appraisal, title review, underwriting, and a final approval before arriving at the closing table. The typical timeline in Minnesota is 21 to 30 days for a conventional loan. FHA and VA loans typically run in the same range. A 14-day close is possible on a conventional loan but it requires everything to move quickly and without delays.

The First 48 Hours After Your Offer Is Accepted

Two things need to happen right away.

Submit the purchase agreement to Ken.

Within 24 to 48 hours of your accepted offer, send the signed purchase agreement over. The first thing Ken does is look at what your payments are going to look like and make sure all the documents are in order. From there, Ken shops multiple wholesale lenders to find the one that fits your specific situation and offers the best combination of rate and fees available that day.

That’s different from what a bank does. A bank has one menu. Ken has access to multiple wholesale lenders and runs your profile across all of them before making a recommendation. Once the right lender is identified, Ken puts the file together and submits it to that lender to get the initial loan documents disclosed.

Pay your earnest money deposit.

Earnest money is typically due within one to three days of the accepted offer, depending on your purchase agreement terms. In Minnesota, the standard is roughly 1% of the purchase price. On a $355,000 home, that’s $3,550. It goes into escrow with the title company and gets applied toward your closing costs or down payment at closing. It’s not an extra cost. It’s money you were already planning to bring to the table.

Home Inspection – What It Is and Why It Matters

The home inspection is your opportunity to take a close look at the property before you’re fully committed.

You hire and pay for the inspector. In the Twin Cities, expect to pay $400 to $600. The inspection typically happens within 5 to 10 days of the accepted offer and covers the home’s structure, systems, and major components.

If the inspector finds issues, you have options. You can ask the seller to make repairs, request a credit toward closing costs, or in some cases walk away entirely. Most Minnesota purchase agreements include an inspection contingency that gives you that protection. Use it wisely.

Signing the Loan Documents – What Intent to Proceed Means

Once the lender issues the initial loan documents, they need to be reviewed and signed. This is a step most buyers don’t hear much about before they’re in it.

The Loan Estimate is part of that package. Review it carefully. It shows your loan terms, estimated monthly payment, and projected closing costs. Compare it to what you were quoted before you sign.

When you sign and return the documents you’re giving what’s called an intent to proceed. That sounds formal but what it means is simple: you’re telling the lender you want to move forward with this loan. That step matters because the lender cannot legally order the appraisal or start the title work until the intent to proceed is in place.

Once that happens, things start moving.

What Is a Home Appraisal and What Happens If It Comes In Low?

As soon as the intent to proceed is in, Ken orders the appraisal. This is not something you order yourself. It comes through the lender.

The appraiser’s job is to confirm the home is worth what you agreed to pay for it by comparing it to recent sales of similar homes nearby. In the Twin Cities, plan on about two weeks for the appraisal to be completed from the time it’s ordered.

The lender needs the appraised value to come in at or above the purchase price before approving the loan as structured. If it comes in low, you have three options. You can renegotiate the purchase price with the seller. You can pay the difference between the appraised value and the purchase price in cash. Or you can walk away if your purchase agreement includes an appraisal contingency.

Low appraisals are not uncommon. Ken has been through this many times and can help you think through the options clearly when it happens.

VA appraisals include additional minimum property requirements beyond market value. Ken can walk VA buyers through what that means for their specific property.

What Is Underwriting and What Does Clear to Close Mean?

While the appraisal is being completed, Ken is getting the file prepped for underwriting. The goal is to have everything ready to submit as soon as the appraisal and title work come back.

The initial submission goes to the underwriter and comes back with what’s called a conditional approval. That’s not a full approval yet. It’s a list of conditions, meaning additional documents or explanations the underwriter needs before issuing the final sign-off. This is completely normal. It does not mean something is wrong with your loan.

Common conditions include an updated pay stub if the one on file is more than 30 days old, documentation of where your closing funds are coming from, whether that’s savings, a gift, or a retirement account withdrawal, and sometimes a letter explaining a recent credit inquiry. Ken works through all of this with you and gets the file back to the underwriter with the appraisal and title work once everything is ready.

The underwriter then issues the final approval. That’s your clear to close. It means the loan is approved, all conditions are satisfied, and closing can be scheduled.

If you want to understand what loan programs are available and how underwriting works across different loan types, that’s a good place to start before you’re under contract.

Don’t Forget Homeowner’s Insurance

While all of this is happening, you need to get your homeowner’s insurance in place. The lender requires proof of insurance before closing.

For a single-family home, a standard homeowner’s policy typically runs $200 to $350 per month depending on the home and the coverage. For a townhome or condo, you’ll need an HO-6 policy, which covers the interior of the unit. Those typically run around $60 per month. Get this lined up early so it doesn’t create a last-minute delay.

The Closing Disclosure, Final Walkthrough, and Closing Day

The Closing Disclosure.

Once the clear to close is issued, the closing department at the lender starts coordinating with the title company. The title company puts together the final numbers, and that’s what Ken passes along to you so you know exactly how much to bring to closing, either as a wire transfer or a cashier’s check depending on what the title company requires.

At least three business days before closing you’ll receive the Closing Disclosure. Federal law requires that waiting period so you have time to review it. The numbers should look very similar to your original Loan Estimate. Compare them. If anything looks different, ask Ken before closing day.

The CFPB has a useful breakdown of the Closing Disclosure if you want to know exactly what each line means.

The final walkthrough.

This typically happens the day before or the morning of closing. Walk through the home one more time to confirm it’s in the same condition as when you made your offer and that any agreed repairs are complete. It’s a short visit. Don’t skip it.

Closing day.

Closing in Minnesota typically happens at a title company office. Bring your government-issued photo ID and your cashier’s check or confirmation of wire transfer for closing funds. Personal checks are not accepted. The signing appointment typically takes 45 to 60 minutes. Once all documents are signed and funds are disbursed, you get the keys.

Now you’re a homeowner.

What Should You Avoid Doing Between Pre-Approval and Closing?

This section matters more than most buyers realize. A few common mistakes can delay or derail a closing entirely.

Don’t open new credit accounts or apply for new credit. Every new inquiry or new account changes your credit profile. Underwriting may need to re-review the file and that takes time you may not have.

Don’t make large purchases before closing. New furniture, a car, appliances on a store credit card. All of it shows up. A significant new debt obligation can change your debt-to-income ratio and put your approval at risk.

Don’t change jobs without telling Ken immediately. Employment changes trigger additional documentation and sometimes a full re-verification of income. It doesn’t automatically kill the loan but it needs to be handled right away.

Don’t move money between accounts without documenting it. Underwriters need to trace every dollar going toward the down payment and closing costs. Unexplained deposits or transfers raise questions. Keep your accounts stable and tell Ken about anything unusual before it happens.

Stephanie and I give every buyer a clear heads-up on this before they go under contract so there are no surprises.

Questions We Hear a Lot

How long does it take to close on a home in Minnesota? For a conventional loan, typically 21 to 30 days from accepted offer to closing. FHA and VA loans run in the same range. A 14-day close is possible on a conventional loan but everything has to move fast and without delays. Ken gives every buyer a realistic timeline based on their specific loan and situation.

What is earnest money and do I get it back? Earnest money is a deposit paid after your offer is accepted. In Minnesota it’s typically around 1% of the purchase price. It goes into escrow and gets applied toward your closing costs or down payment. If the deal falls through due to a failed inspection or low appraisal and your purchase agreement includes the appropriate contingencies, you typically get it back. If you walk away without a contingency to cover it, you may forfeit it.

What does clear to close mean? Clear to close means the underwriter has reviewed the full file, all conditions have been satisfied, and the loan is approved. It’s the green light that allows closing to be scheduled.

What should I bring to closing? A government-issued photo ID and your cashier’s check or confirmation of wire transfer for closing funds. Don’t bring a personal check. It won’t be accepted.

Can I still back out after I’m under contract? It depends on your contingencies. Most Minnesota purchase agreements include inspection and financing contingencies that give the buyer a path to exit without losing their earnest money if certain conditions aren’t met. Once contingencies are removed the exit becomes more complicated. Ken can walk you through what your specific purchase agreement allows.

The process from accepted offer to closing is predictable once you know the steps. Nothing about it needs to be a surprise.

Ken and Stephanie walk every buyer through this sequence in real time, answering questions, managing conditions, and making sure nothing falls through the cracks between contract and closing day.

No surprises. Just a clear path to the closing table.

Start your pre-approval here so you’re ready to move the moment your offer is accepted. Or if you want to understand the full homebuying process from the beginning, the Blueprint to Homeownership covers it all in plain English.

Apply online today or book a call with Ken and let’s make sure you’re ready for every step.

Written by Ken Graczak, NMLS #184394 | CFR Mortgage | Bloomington, MN