Home Buyers: Closing of Escrow Timelines

Once unconditional loan approval is met, the closing of escrow begins. 

The buyer will receive the closing disclosures, CD, from the lender, which state the final details about the loan including the total costs and details associated with the loan. Now would be the time to resolve any issues if something does not look as you expected. Loan docs cannot be signed until 3 business days after the CD is signed. 

Within 5 days from the close of escrow, you will want to do the final walk through with your agent. At this time, you will want to verify the property is in the same condition it was when you submitted your offer, and you will want to ensure that all the repairs you requested, if any, have been completed. You will then sign a Verification of Property form stating the details of your findings. 

Once loan docs arrive at the escrow office, the escrow officer will notify you as the buyer and make an appointment to come in and sign. Make sure you bring a valid state ID, driver’s license or passport to sign the loan documents. The Notary requires these as a routine step to verify identity. If you are unable to sign during escrow’s business hours, you have the option to meet with their Notary after hours. Once loan docs have been signed, they are sent back to your lender for final review. 

At about 3 days before the close of escrow, the buyer will receive the wiring instructions from escrow for the remainder of their down payment and any other monies required to purchase your new home. The lender must have confirmation that the buyer’s wire is in escrow prior to their funds being wired out. If you are only able to do a check, we recommend coordinating that process with escrow to make sure it clears in time to stick with the specific close of escrow timeframe. Following confirmation of the buyer’s funds and review of the escrow documents, the lender will wire the remaining funds, usually, the day before escrow closes. 

Due to the Good Funds measure passed in California , the money has to sit in escrow for a certain period of time, typically a day, prior to the closing and recording of escrow. Upon the day the closing of escrow occurs, the title company will record the Deed of Trust with the county. Upon receipt of confirmation of the deed being recorded, title will confirm with escrow and escrow will contact both the buyer and seller. At this time, escrow will disburse the money to the appropriate parties and you will now be celebrating as a new property owner! 

Please head over to our contact page if you would like more information about the purchasing process.