Once both buyer and seller sign the contract you will have 3 banking days to place Escrow. This amount is dependent on the price of your home purchase. It can be as little as $1,000. This money is held in an Escrow account and applied as a credit on your down payment.
Escrow funds can be wired to the title company, which is great practice for closing day.
This is a promise to go forward with the purchase and the seller will then update the home status to pending sale.
And if your cancel during the Inspection Period, the Escrow funds are returned to the Buyer. If you cancel the purchase after the inspection period, the seller can keep the Escrow Deposit.
Underwriting Your Loan
Your lender will confirm all details on your application and may ask you for more information. I know... this is the most homework you have had since 10th Grade. Just remember the golden rule, "The bank that is loaning the money, makes all the rules. And we have to play by them."
Your Realtor can sit with you and review paperwork, explain questions, and assist you with anything you need. And there are no silly questions when you are applying for a home loan, ask away.