Your offer got accepted. Now what? Now you’re in escrow — the stretch of time between your accepted offer and getting the keys. It usually lasts a few weeks. Here’s what actually happens, in order, and what can go wrong.
What escrow is
Escrow is a neutral third party — usually a title company or an escrow company — that holds your money and your documents until everyone has done what they agreed to do. Your earnest money goes into escrow. The seller’s deed goes into escrow. The lender’s money goes into escrow. Nobody gets anything until the deal is ready to close. If the deal falls apart the right way, you get your earnest money back. If it falls apart the wrong way, you might not.
The steps, in order
- 1. Escrow opens. The buyer, seller, and agents all sign escrow instructions. The title company starts a title search to make sure the seller actually owns the home and there are no liens or claims on it.
- 2. Earnest money deposit. You wire your earnest money into escrow, usually within 24 hours of acceptance. Before you send a cent, call escrow to verify the wire instructions — wire fraud targets first-time buyers who are moving fast and trusting every email they get. One phone call. Do it every time.
- 3. Title search and title insurance. The title company checks the property’s history — past owners, liens, easements, anything that could cloud the title. You buy title insurance to protect yourself if something was missed.
- 4. Home inspection. You hire a licensed inspector to go through the house — roof, heater and air conditioning, water heater, water damage, existing and potential. You get a long report listing every issue. They find something in every house, because that’s what they’re paid for. Read it, talk to the inspector while they’re there, and decide what’s a deal breaker.
- 5. Appraisal. Your lender orders an appraisal through a third party. The appraiser checks the overall value — condition, features, size — and compares the home to others in the area that recently sold. Say you offer $300,000 and it appraises at $290,000. That $10,000 gap is real money. You renegotiate, you pay the difference, or you walk. The bank won’t lend on a house that isn’t worth it.
- 6. Loan processing and underwriting. Your file goes to underwriting. The underwriter reviews your documents, verifies your income and assets, and may ask for more paperwork. Be honest upfront — if something in your file is messy, the underwriter will find it. Get documents back fast, because the longer it takes you, the longer the process takes.
- 7. Contingency removal. Your contract has contingencies — inspection, appraisal, loan — that protect you. As each one is satisfied, you remove it in writing. Once a contingency is removed, you’re committed. Your agent walks you through the timing.
- 8. Closing disclosure. About three days before closing, you get the closing disclosure — the final numbers: your loan amount, your rate, your cash to close. Sign it fast. Once you sign, the 3-day clock is running, and that’s the period before you can sign your loan docs.
- 9. Final walkthrough. You walk the house one more time, usually the day before or the day of closing, to make sure it’s in the condition you agreed to — repairs done, nothing missing, nothing damaged since you last saw it.
- 10. Signing. You sign your loan documents — your deed of trust, your note, and everything else. Your note is the most important thing you sign aside from the final closing disclosure. It shows your first payment date, your loan amount, your interest rate, and your last payment date. Keep that if you keep nothing else.
- 11. Funding, recording, keys. Escrow sends the signed documents back to the lender, the lender wires the funds, and once escrow has the money, the deed is recorded with the county. You are officially the homeowner. Then you get the keys.
What can go wrong — and what to do about it
- Low appraisal. The house appraises below your offer price. You renegotiate, you pay the difference out of pocket, or you walk. A good agent is your best resource for the negotiation.
- Inspection finds something big. A bad roof, foundation problems, major plumbing. You ask the seller to fix it, you ask for a credit, or you walk. Know your deal breakers before you get the report.
- Underwriting asks for more documents. Normal. Get them back fast. Delays here push your closing date.
- Closing slips. A document is missing, a number doesn’t match, someone’s on vacation. It happens. Stay in touch with your lender and your agent, and don’t panic — most slips are a few days, not a deal breaker.
- A suspicious wire email. You get an email with “updated” wire instructions. Do not use them. Call escrow at a number you already have — not a number from the email — and verify. Wire fraud is the one mistake you cannot undo.
How long does escrow take?
A few weeks, usually. The lender’s underwriting, the appraisal, and the title search are what take the time. If everything goes smoothly, 30 days is typical. If something goes wrong — a low appraisal, a title issue, a document delay — it can take longer.
What escrow costs you
Closing costs run 2–5% of the purchase price. On a $700,000 house, that’s $14,000 to $35,000. The big pieces: the appraisal ($500–$900), the home inspection ($400–$700), title insurance, escrow fees, and lender fees. Your earnest money goes toward your down payment and closing costs — it’s not extra money on top.
Dat’s take
Escrow is just a checklist with money attached — do the steps in order, verify the wire by phone, and don’t let anyone rush you past the inspection.
What to do with this
- If you’re in escrow now, ask your agent or me where your step stands — and what’s next.
- Run your payment in the Mortgage Payment Calculator so the number you’re closing on is one you’re comfortable with.
- Read What Is a Conventional Loan? and What Is an FHA Loan? if you’re still deciding which loan fits.
- Then start your pre-approval — I can do it in 5 to 20 minutes with 2 pay stubs and 2 bank statements.
I walk through escrow as part of the 15 steps in Episode 1: listen here.
Figures verified November 8, 2026: appraisal $500–$900 and inspection $400–$700, closing costs 2–5% of price, per the FTHB Pros revamp plan; $300,000 offer / $290,000 appraisal example from Dat’s Episode 1 show notes; pre-approval in 5–20 minutes with 2 pay stubs and 2 bank statements per Episode 1 notes. This is education, not a rate quote or a loan approval. Dat Nguyen, Certified Mortgage Advisor, NMLS 1379110, Everyday Lending Group.