What Happens After You Go Under Contract in Tennessee?

What happens after you go under contract in Tennessee is one of the first questions buyers and sellers ask once an offer gets accepted. The excitement of a signed contract is real, but the work between that moment and closing day is where deals either come together or fall apart. Understanding each step, who is responsible for it, and when it has to happen is the difference between a smooth closing and a stressful one. This guide covers the full process the Turner Victory Team walks through with every buyer and seller in Murfreesboro and across Rutherford County from binding agreement to keys in hand.

Tennessee real estate contracts include specific contingency periods and deadlines that both buyers and sellers need to understand before the ink dries. Missing a deadline or misreading a contingency can cost a buyer their earnest money or give a seller the wrong impression about where things stand. Every step in what happens after you go under contract has a consequence attached to it. Knowing them protects both sides and keeps the transaction on track.

Step One: Earnest Money Deposit

The first thing that happens after you go under contract in Tennessee is the earnest money deposit. This is the buyer’s show of good faith, and in Rutherford County the amount is negotiated as part of the offer. The deposit amount varies by transaction and is agreed upon between buyer and seller.

The deposit is held in an escrow account, usually by the title company or the listing broker, and it is credited toward the buyer’s closing costs at the end of the transaction. If the deal closes, the money goes toward what the buyer owes. If the buyer backs out for a reason covered by a contingency, the earnest money is typically returned. If the buyer backs out without a valid contingency reason, the consequences can include forfeiture of the earnest money deposit and potentially other legal remedies available to the seller under the contract. The Tennessee Residential Purchase and Sale Agreement spells out exactly when earnest money is at risk, which is why understanding the contingency periods covered in later steps matters so much.

Step Two: The Home Inspection Period

After earnest money is delivered, what happens next after you go under contract in Tennessee is the inspection period. Tennessee contracts typically include an inspection contingency that gives the buyer a set number of days to have the property professionally inspected. The length of the inspection period is negotiated as part of the contract, so review your specific agreement with your agent to confirm your exact window.

During the inspection period the buyer hires a licensed home inspector to evaluate the property. The inspection covers the structure, roof, foundation, electrical, plumbing, HVAC, and other major systems. It does not cover every possible issue, and a home inspection is not a guarantee of condition. What it does is give the buyer a detailed picture of what they are purchasing before they are committed beyond the inspection period.

After the inspection report comes back, the buyer has options. They can proceed with the purchase as-is, request repairs, ask for a price reduction or closing cost credit in lieu of repairs, or in some cases terminate the contract within the inspection period and receive their earnest money back. This decision point is one of the most important moments in what happens after you go under contract in Tennessee. How the Turner Victory Team approaches it with buyers and sellers is rooted in the same education-first principle that guides everything we do. The goal is clarity, not pressure, so both sides make decisions based on what the data actually shows. Learn more about the full inspection process and how we guide buyers through it in Murfreesboro.

Step Three: The Appraisal

If the buyer is using financing, an appraisal is one of the most important things that happens after you go under contract in Tennessee. The lender will order an independent appraisal to confirm that the home’s value supports the loan amount. In most financed transactions the appraisal must be ordered within a set number of days of the binding agreement date per the contract terms. Cash buyers who wish to have an appraisal can order one independently, often on a shorter timeline.

The appraiser visits the property, reviews recent comparable sales in the area, and produces a formal opinion of value. If the appraisal comes in at or above the purchase price, the transaction moves forward. If it comes in below the purchase price, the buyer has the right under most Tennessee contracts to move forward with the purchase or to terminate. The specifics depend on the financing contingency language in your contract, which is why reviewing it carefully with your agent and attorney matters.

Step Four: Financing Approval and the Clear to Close

Financing approval is the stage that determines whether what happens after you go under contract in Tennessee ends at the closing table or falls apart before you get there. Even buyers who are pre-approved at the time of the offer still need full underwriting approval before they can close. Pre-approval is based on a review of financials at a point in time. Underwriting is a full verification of everything the lender needs to fund the loan.

During this period the lender will request updated documents, verify employment, review the appraisal, and clear any conditions on the loan file. Buyers should avoid making large purchases, changing jobs, or opening new credit accounts during this period. Any of those actions can create underwriting complications that delay or derail the closing. The final step in the financing process is the clear to close, which means the lender has approved the loan and is ready to fund.

Tennessee contracts include a financing contingency that protects buyers if their loan falls through for reasons outside their control. If a buyer loses financing despite acting in good faith, the contingency typically allows them to terminate and recover their earnest money. If a buyer contributes to the financing failure through their own actions, that protection may not apply. Financing is the single stage of what happens after you go under contract in Tennessee where buyer behavior has the most direct impact on the outcome. Current mortgage rate data is published weekly by the Freddie Mac Primary Mortgage Market Survey. Understanding how financing works in the current rate environment is something every Murfreesboro buyer should do before going under contract, not after.

Step Five: The Final Walk-Through and Closing Day

The final walk-through and closing day are the last two milestones in what happens after you go under contract in Tennessee. The walk-through typically takes place within 24 hours of closing and gives the buyer a chance to confirm the property is in the same condition it was at the time of the offer, that agreed-upon repairs have been completed, and that the seller has vacated and left behind only what was included in the contract.

Closing day is when title transfers from seller to buyer. In Tennessee, closings are handled by a title company or real estate attorney. Both sides sign their respective documents, funds are transferred, and the deed is recorded with the county. At the point of recording, the buyer officially owns the property. Deed recording in Rutherford County is handled through the Rutherford County Government. Most closings take one to two hours in person, though remote and split closings are available in some situations.

What Happens After You Go Under Contract: The Full Timeline

Here is how the typical Murfreesboro transaction flows from binding agreement to closing. This is what happens after you go under contract in Tennessee laid out step by step. Exact timelines depend on the contract terms, lender speed, and any issues that arise during the process.

How the Turner Victory Team Guides You Through What Happens After You Go Under Contract

The Turner Victory Team has guided buyers and sellers through this process in Murfreesboro since 2000. What happens after you go under contract in Tennessee is not complicated when you have someone walking through it with you at every step. What makes transactions fall apart is not the process itself. It is missed deadlines, miscommunication between the parties, and buyers or sellers making decisions in a vacuum without understanding what the data and the contract actually say.

Every client the Turner Victory Team works with gets proactive communication at each stage. You will know when each deadline is coming before it arrives, what your options are at every decision point, and what the data says about the choices in front of you. That is the Ninja Selling approach: education over pressure, clarity at every step. Read more about what goes into the selling decision, how long homes typically take to sell in Murfreesboro, and what seller closing costs look like in Tennessee. For buyers, our full buyer resources page covers everything from pre-approval through closing. Learn more about why Murfreesboro buyers and sellers choose the Turner Victory Team when they want that level of clarity from start to finish.

All process information is based on standard Tennessee residential real estate contracts and current Rutherford County market practice as of May 2026. Contract terms vary by transaction. If you have questions about what happens after you go under contract in your specific situation, always review your agreement with your agent and attorney before making any decisions.