What to Expect During Escrow

The Phase Where Everything Gets Verified Before Closing

Escrow is the period after your offer is accepted but before the sale is finalized. Think of it as a secure holding phase where money, documents, and conditions are handled safely until everything is confirmed.

Here’s what actually happens 👇

🧾 1. Opening Escrow

• A neutral third party (escrow company or attorney) is assigned

• Buyer deposits earnest money

• Contract terms are officially recorded

👉 This protects both buyer and seller

🔎 2. Home Inspection

• Buyer hires an inspector

• Checks structure, systems, and potential issues

• Buyer may request repairs or credits

👉 This step can lead to renegotiation

🏦 3. Appraisal

• Lender orders an appraisal

• Confirms the home’s value matches the loan amount

👉 If value is lower, price may need adjustment

📄 4. Loan Processing & Approval

• Lender reviews buyer’s finances again

• Verifies income, credit, and documents

• Issues final loan approval

👉 Avoid big purchases or job changes during this time

📑 5. Title Search & Insurance

• Ensures the property has no legal issues or liens

• Buyer gets title insurance

👉 Confirms the seller has the right to sell

🧠 6. Contingency Period

Common contingencies include:

• Inspection

• Financing

• Appraisal

👉 These must be satisfied or removed before moving forward

🧾 7. Negotiations (If Needed)

• Repairs or credits may be requested

• Terms can be adjusted

👉 Deals are often refined—not just accepted

🚶‍♂️ 8. Final Walkthrough

• Buyer checks the home before closing

• Confirms condition is as agreed

• Verifies repairs (if any) are completed

👉 Last chance to catch issues

💰 9. Closing Preparation

• Final documents are prepared

• Buyer reviews closing disclosure

• Funds are transferred to escrow

👉 Everything is lined up for completion

🔑 10. Closing Day

• All documents are signed

• Ownership is officially transferred

• Keys are handed over

👉 Escrow is complete 🎉

⏱️ How Long Does Escrow Take?

• Typically 30–45 days

• Can be shorter or longer depending on financing and negotiations

⚠️ Common Issues During Escrow

• Low appraisal

• Inspection problems

• Financing delays

• Title issues

👉 Most problems are fixable—but can delay closing

🧠 Final Insight

Escrow is about verification and protection:

• Verifying the home

• Verifying the buyer’s financing

• Protecting both parties

👉 It’s the most critical phase before ownership changes