Key takeaways
13 min read
- A financed purchase often takes 30 to 45 days from accepted offer to keys.
- Use your inspection period well. You can accept, ask for repairs or a credit, or walk away.
- Keep your finances frozen. No new debt, big purchases, or job changes until you close.
- Always confirm wire instructions by phone with your title or escrow company.
In this chapter
Know the road from offer to keys
Hooray, your offer was accepted. A financed purchase often takes 30 to 45 days from here to keys.
Now comes the home stretch, a period often called escrow, when a neutral third party holds funds and documents until every condition is met. Our Ops team keeps you on track through all of it.
Day 0
Offer accepted; escrow opens
About 3 business days
Earnest money deposit due (3 business days is standard in California)
Weeks 1 to 2
Inspections, disclosure review, and repair negotiations
Weeks 2 to 3
Appraisal ordered and completed
Weeks 2 to 4
Underwriting, final loan approval, and insurance in place
A few days before
Closing Disclosure review and final walkthrough
Closing day
Sign, fund, record, and get the keys
A typical financed purchase. Timelines vary by contract, lender, and market. Cash purchases can close much faster.
2Deposit earnest money safely
Your earnest money, usually 1% to 3% of the price, goes into escrow shortly after acceptance. It shows the seller you're serious and is credited toward your down payment at closing.
If you cancel within a contingency period for a reason the contract allows, your deposit is generally returned. If you back out without a valid reason, you may lose it. Your agent will flag every deadline.
Protect yourself from wire fraud
Criminals target homebuyers with fake emails that look like they come from title companies or agents. Here's what one can look like.
From: Escrow Team <closing@secure-tittle-docs.com>1
Subject: URGENT: Updated wire instructions for your closing2
Hi, our bank details changed this morning.
Please wire your closing funds to the new account below today so your closing isn't delayed.3
Spot the red flags
- 1A look-alike sender address, one letter off
- 2Urgency, with a last-minute change
- 3New bank details sent by email
Call before you send a dollar
Before you send any money, call your title or escrow company at a phone number you looked up yourself and confirm the instructions. Never trust a last-minute change by email.
3Check under the hood
Your inspection period is your chance to learn everything about the home before you're committed. Your agent can help you schedule inspectors quickly so you don't run out of time.
Inspections to consider
General home
Structure, roof, plumbing, electrical, heating and cooling. Always.
Pest or termite
Wood-destroying organisms and damage. Common in California; often requested by lenders.
Roof
Remaining life and leaks. For older roofs or concerns from the general inspection.
Sewer line
Cracks, roots, or blockages in the line to the street. For older homes and mature trees.
Foundation
Settling, cracks, and drainage. For visible cracks or sloping floors.
Chimney, pool, or mold
Specialty systems, when the home has them or there are signs of trouble.
Read the disclosures, all of them
Sellers must disclose known issues, and reports can run well over 100 pages. Our disclosure analysis breaks them into a clear summary of what's major and what's minor, and your agent reviews it with you.
Found something? You have three paths.
Accept
- Minor issues you can live with
- Keeps the deal simple
Ask
- Repairs before closing
- A credit or a lower price
Walk away
- Dealbreakers within your contingency period
- Earnest money generally protected
4Clear the appraisal and title
Your lender orders an appraisal to confirm the home is worth what you're borrowing against. If it comes in low, you have options.
Renegotiate
Use the appraisal to revisit the price with the seller.
Cover the gap
Pay the difference in cash if you can, and if you agreed to in your offer.
Challenge the appraisal
Submit better comps through your lender.
Cancel
Use your appraisal contingency, if you kept one.
Meanwhile, the title company runs a title search to confirm the seller can legally sell and that there are no unpaid liens. Your lender requires a lender's title policy. An owner's policy protects you, and it's worth having.
5Finalize your mortgage
Pre-approval isn't the finish line. Your loan now goes through underwriting, where the lender re-verifies everything and may ask for more documents. Expect requests for updated pay stubs, bank statements, and letters explaining deposits.
Keep underwriting moving
- Respond to every lender request within a day
- Send complete statements, every page, even the blank ones
- Document large deposits before you're asked
- Know your rate lock expiration date and track it
You're not locked in with the lender that pre-approved you. If another lender offers better terms, you can switch, though switching late can delay closing. Once underwriting is satisfied, you'll get a clear to close.
Lender asking for something confusing? Send your team a message.
6Protect your home with insurance
Your lender requires homeowner's insurance before funding, and you'll bring proof to closing. Shop early. In parts of California, finding coverage now takes longer than it used to.
How coverage stacks up
Dwelling
Base it on rebuild cost, not market value
The structure itself.
Personal property
Check limits for jewelry and valuables
Furniture, electronics, clothing.
Liability
Consider an umbrella policy
Injuries and damage you're responsible for.
Flood
Separate policy
Water from flooding. Usually separate, through the NFIP and private insurers.
Earthquake
Separate policy
Shaking damage. Separate in California, including through the California Earthquake Authority.
$350 to $500
Per sq ft rebuild benchmark in major California cities
Up to $1,000
Per sq ft for some luxury homes
Benchmarks vary widely by home and area. Your insurer will estimate replacement cost for your policy.
7Keep your finances steady until closing
Your lender approved a snapshot of your finances, and many lenders check credit and employment again right before funding. Any change can delay or derail your loan.
Hold off until you have keys
- Big purchases, even in cash
- New cards, store accounts, or car loans
- Quitting or changing jobs
- Co-signing for anyone
Keep doing
- Paying every bill on time, with autopay on
- Keeping your money where it is
- Getting a gift letter for any family help
- Asking your lender before any financial move
The sofa can wait two weeks. Your interest rate can't.
Review, walk through, and sign
The finish line. Check the numbers, check the house, then sign.
You'll receive your Closing Disclosure at least three business days before closing. Compare it with your Loan Estimate line by line and ask about anything that changed.
A day or two before signing, do a final walkthrough to confirm agreed repairs are done, appliances work, and the home is in the condition you agreed to.
Closing checklist
- Review the Closing Disclosure against your Loan Estimate
- Complete the final walkthrough
- Bind homeowner's insurance and send proof to your lender
- Schedule utilities, internet, and trash service
- Bring government ID and any documents your title company requests
- Send closing funds by verified wire or cashier's check
- Sign your closing documents
After you get the keys
Change the locks
And the garage codes.
File for your homestead exemption
File with your county. In California, the homeowners' exemption lowers your assessed value by $7,000.
Save your closing documents
You'll want them for taxes and any future sale.
Ready to start your own journey?
A licensed local agent will walk every step with you, and you'll get the buyer's agent commission back, minus our low flat fee.
Common questions
How long does closing take?
A financed purchase often takes 30 to 45 days from accepted offer to keys. Cash purchases can close much faster.
What happens if the appraisal comes in low?
You can renegotiate, cover the gap in cash, challenge the appraisal, or cancel if you kept an appraisal contingency.
Can I back out after my offer is accepted?
Usually, if you cancel within a contingency period for a reason the contract allows. Backing out without a valid reason can cost you your earnest money.
What should I bring to closing?
Government ID, proof of insurance, verified closing funds, and any documents your title or escrow company requests.