You found the home, your offer was accepted, and now you are in escrow. Congratulations — but the work is not over yet. The closing period, typically 30 to 45 days, is where deals can stall or fall apart. Understanding what happens during this window will help you navigate it with confidence.
Week 1: Earnest Money and Inspections
Within 24-48 hours of acceptance, you will deposit earnest money — typically 1-3% of the purchase price — into an escrow account. This shows the seller you are serious. Simultaneously, schedule your home inspection immediately. The inspection contingency period is usually 7-10 days, and you want to leave time for potential follow-up inspections (sewer, roof, structural) if issues are found.
Review the inspection report carefully with your agent. Not every issue is a reason to walk away or renegotiate. Focus on health and safety items (electrical, structural, water intrusion) and major systems. Cosmetic issues are your responsibility as the new owner.
Week 2-3: The Appraisal and Loan Approval
Your lender will order an appraisal to confirm the home’s value supports the loan amount. If the appraisal comes in at or above the purchase price, you proceed smoothly. If it comes in low, you have three options: renegotiate the price, make up the difference in cash, or walk away (if you have an appraisal contingency).
During this same period, you will be working through loan conditions. Respond to your lender’s requests immediately — every day of delay extends the closing timeline. Common requests include updated pay stubs, bank statements, and letters of explanation for any large deposits.
“The most common cause of delayed closings is not a problem with the property — it is a problem with the buyer’s responsiveness to their lender. Answer every request within 24 hours.”
Week 4: Final Walk-Through and Closing Disclosure
Three to five days before closing, you will receive your Closing Disclosure — a document detailing your final loan terms, monthly payment, and closing costs. Review this carefully and compare it to your initial Loan Estimate. Any significant discrepancies should be questioned immediately.
Within 24 hours of closing, do a final walk-through of the property. Confirm that the home is in the agreed-upon condition, that any negotiated repairs were completed, and that nothing has changed since your last visit. This is your last chance to address issues before the property is yours.
Closing Day
- Bring a valid government-issued photo ID
- Bring a cashier’s check or wire instructions for your down payment and closing costs
- Expect to sign 50-100 pages of documents — your escrow officer will guide you through each one
- Once funded and recorded, you receive the keys — and the home is officially yours
The closing process can feel overwhelming, but it follows a predictable sequence. Stay organized, respond to your lender promptly, lean on your agent for guidance, and you will be holding those keys before you know it.
Author: Gautam
Luxury Estates Specialist