Home Buyer
CHICO · PARADISE · OROVILLE · BUTTE COUNTY
The Homebuying Process: A 30-Day Escrow Example
Follow the steps from application and an accepted offer to inspections, contingencies, signing, recording, and keys.
A Buyer’s Path: Before Escrow and a 30-Day Closing
Before the Escrow Clock Starts
- Application: share your income, employment, debts, savings, and purchase goals. You don’t need to have chosen a home.
- Preapproval: review your budget, estimated price range, loan options, and cash needed before shopping.
- Offer: work with your agent to propose a price, deposit, contingencies, and closing date. A counteroffer may change those terms.
- Accepted offer → in escrow: once the offer or the final counteroffer is accepted and acceptance is delivered as required by the contract, escrow opens and contractual deadlines begin.
Example: 30-Day Escrow Milestones
Dates will vary depending on your purchase contract and any agreed changes. This timeline is a general example of a 30-day escrow. Discuss each milestone and deadline with your real estate agent and lender so you understand what is due, who handles it, and how it affects your purchase. Day 0 below is acceptance; day numbers are calendar days except where business days are specifically stated. Confirm actual due dates, including weekend and holiday adjustments, with your agent.
| When | Milestone | What happens |
|---|---|---|
| Day 0 | Offer accepted; escrow opens | Your agent, lender, and escrow officer receive the signed agreement and coordinate the closing schedule. |
| Within 3 business days of acceptance | Earnest money deposit | A common deposit deadline; follow the exact deadline and amount in your agreement. Deliver funds to escrow using verified instructions. |
| Days 1–10 | Inspections and disclosures | Schedule inspections promptly, review seller disclosures, get insurance quotes, and discuss needed repairs or further investigation with your agent. |
| Days 1–14 | Appraisal and underwriting | The lender orders an appraisal when required and reviews your loan documents. Respond to requests promptly. Appraisal timing can vary. |
| By Day 17 in this example | Inspection and appraisal contingencies | Review inspection findings and the appraisal with your agent and lender before deciding whether to remove these protections, request an extension, or exercise a contractual cancellation right. |
| By Day 17 in this example | Loan contingency | Confirm the status of your financing and outstanding conditions before deciding whether to remove the loan contingency. Your negotiated deadline may be earlier or later. |
| Days 21–25 | Final conditions and Closing Disclosure | Complete remaining loan requirements and review the payment, loan terms, and cash to close. For most mortgages, you must receive the Closing Disclosure at least 3 business days before signing the loan documents; your lender confirms the timing. |
| Days 25–28 | Final walkthrough and signing | Coordinate the walkthrough with your agent and sign loan and escrow documents, often a few business days before closing. Signing does not by itself mean the purchase has closed. |
| Usually 1–2 business days before closing | Wire remaining funds | Confirm the final amount and escrow’s receipt deadline, allowing for bank cutoffs. Independently verify wire instructions by calling escrow at a trusted number before sending money. |
| Days 28–30 | Lender funding | The lender reviews signed documents and sends loan funds to escrow after funding requirements are met. |
| Day 30 target | Recording, closing, and keys | Once funds and documents are ready, the county records the deed and escrow confirms closing. This is when you get the keys! |
Dates can shift. These activities overlap, and appraisal availability, underwriting, repairs, bank cutoffs, weekends, and holidays can affect timing. Contingencies are not automatically removed just because a date passes; coordinate any written removal or extension with your agent.
Questions About Your Purchase
What Does Escrow Mean?
During a purchase, escrow is the process in which a neutral party holds funds and documents while closing requirements are completed. After closing, a mortgage escrow account, also called an impound account, may collect money with your payment to cover property taxes and insurance.
What Is an Appraisal, and Is It the Same as an Inspection?
An appraisal focuses on determining the home’s value. An inspection evaluates its condition and helps identify repairs or maintenance concerns. An appraisal may note property issues, but it does not replace a home inspection.
What Is a Contingency in a Purchase Contract?
A contingency provides protection tied to a condition, such as obtaining financing, an acceptable appraisal, or satisfactory inspections. Discuss its deadline and your options with your real estate agent and lender before removing it.
If I Make an Offer or Sign a Purchase Contract, Am I Obligated to Buy the Home?
Not automatically. Making an offer does not mean you have purchased the home. Once the offer is accepted, however, the contract creates obligations for both you and the seller.
The contract describes the home you are agreeing to buy and the terms of the purchase. It can also include protections called contingencies, giving you time to inspect the home, review disclosures, confirm financing, and evaluate the appraisal.
If a condition covered by an active contingency is not satisfied, you may be able to cancel and have your deposit returned, provided you follow the contract’s requirements and deadlines.
Before signing or removing a contingency, review it carefully with your real estate agent and lender. These protections matter, but they do not give you an unlimited right to cancel. Canceling outside the contract’s protections could put your deposit at risk or have other consequences.
What Is a Closing Disclosure?
A Closing Disclosure shows your final loan terms, payment information, closing costs, and cash to close. Compare it with your Loan Estimate and ask about differences before signing.
What Does Recording Mean, and When Do I Get the Keys?
Recording means the county enters the deed and other documents into its public records. In a typical California purchase, escrow confirms closing after recording. You usually receive keys then, unless your contract provides for later possession or a seller rent-back.