Closing on a Home: From Accepted Offer to Getting the Keys

What "under contract" means

When you and the seller have signed the same purchase agreement, the home is under contract. Both sides are now bound by its terms, and what you can still do — investigate, negotiate, cancel — is governed by the contingencies and deadlines written into it. In Southern California listings you may also see the property marked "pending" or "active under contract" during this period; those labels describe the status to other buyers, not your rights.

Escrow, at a high level

In California purchases, a neutral escrow holder — often an escrow company or the escrow department of a title company — receives the deposit, collects documents from both sides, follows the written instructions everyone agreed to, and at the end handles the money and paperwork so that the seller is paid and the deed is recorded in your name. Escrow does not represent you or the seller; it carries out the instructions. Expect escrow to send you forms to complete early, and expect the deposit to be due to escrow within a short period after acceptance, as set by the contract.

Lender processing and underwriting

With a property under contract, your lender moves from pre-approval to the actual loan. Underwriting is the review of your file — income, assets, credit, the property's appraisal, title and insurance — against the program's rules. Along the way you will get document requests: updated statements, explanations for deposits, proof of insurance, signed forms. Responding quickly and completely is the single most useful thing a buyer can do to keep closing on schedule. Lenders are generally required to verify the source of your funds, so large or unusual deposits will be questioned.

Underwriting often ends with a conditional approval — approval subject to a short list of remaining items — and then final loan approval ("clear to close") once those are satisfied. If terms change along the way, you may receive a revised Loan Estimate; compare it with the earlier one.

Title and ownership review

A title company researches the public record for the property and issues a preliminary report describing the current owner and any recorded matters — liens, easements, restrictions and so on. Read it, ask about anything unfamiliar, and raise concerns within the contract's review period. Lenders require a lender's title insurance policy; an owner's policy protecting you is a separate item that is commonly purchased, and who pays for what is set by the contract and local custom. Questions about what a recorded matter legally means are for an attorney.

Insurance

Your lender will require homeowners insurance to be in place at closing, and in some areas coverage can take time to arrange or be more limited than expected. Start early, compare policies on coverage as well as price, and ask about the property's history and any exclusions. In certain areas flood or other coverage may be required or advisable. The California Department of Insurance publishes consumer guides on residential insurance; an insurance professional can advise on your specific needs.

Inspection, appraisal and disclosures

These usually happen during the first part of the escrow period and have their own guide: inspection vs appraisal. During closing, the practical point is that each has a deadline. Removing a contingency in writing is a decision — once removed, that protection is gone, and the contract says what happens to your deposit if you cancel afterwards. Keep the dates in front of you and ask before any deadline passes.

The Closing Disclosure

For most home loans, your lender must give you a Closing Disclosure at least three business days before you close. It is a five-page form with the final loan terms, projected payments and all closing costs. Compare it line by line with your most recent Loan Estimate. Small changes in some items are normal; unexplained increases, a different rate or loan amount, or fees you do not recognise are reasons to call the lender before signing. Certain significant changes can restart the three-day period.

Final walkthrough

Shortly before closing — often within a few days — you typically walk through the property to confirm it is in the condition the contract calls for: agreed repairs done, items that were to stay still there, nothing new damaged, and the seller's belongings removed or on their way. The walkthrough is not another inspection; it is a check that the deal you agreed to is the deal being delivered. Raise anything wrong with your agent before signing.

Signing, funding, recording — and keys

These are separate steps, and the order matters:

• Signing. You sign the loan documents and escrow paperwork, usually with a notary. Bring government photo identification and any items escrow or the lender asked for. Take the time you need; these documents are binding.
• Funding. Your lender sends the loan money to escrow after its final review of the signed documents, and your own closing funds must be in escrow as well.
• Recording. Escrow arranges for the deed to be recorded with the county recorder. In California, recording is generally the point at which ownership transfers.
• Keys. Possession is set by the contract — commonly on recording, sometimes at a different agreed time.

The closing date in the contract is the target for this sequence. It is not a guarantee, and it is not the moment you own the home; signing on one day and recording on a later day is common. Do not schedule movers, deliveries or a lease end for a day you are not certain of, and do not assume you can access the property until escrow confirms recording and possession.

Avoid financial changes before closing

Everything above rests on the file your lender approved. New debt, a financed purchase, a job change or money moving without a paper trail between approval and funding can require re-underwriting and can delay or derail closing. If something in your life is about to change, tell your lender first. The financing guide lists the common examples.

Wire fraud: read this before you send money

Criminals target home purchases because large sums move on known dates. A common scheme is an email that looks like it comes from your agent, escrow, title or lender, with "updated" wiring instructions that send your closing funds to the criminal's account. The money is often unrecoverable.

Protect yourself:

• Independently verify wiring instructions before sending any funds. Call escrow or title at a phone number you already have from earlier in the transaction or from their verified website — never a number in the email that contains the instructions.
• Treat any last-minute change to wiring instructions as a warning sign, even if the email looks right.
• Do not send bank details or personal financial information by email.
• Agree early with your agent and escrow how instructions will be delivered and confirmed.
• If you have already sent money and suspect fraud, contact your bank immediately to request a recall, then report it to the FBI's Internet Crime Complaint Center.

This is not a reason for alarm. It is a reason for one phone call before every wire.

What to bring and verify

• Government-issued photo identification for every person signing.
• Confirmation from escrow of the exact amount due and how they will accept it (wire or cashier's check), verified by phone.
• Proof of homeowners insurance if the lender or escrow has asked for it.
• Your Closing Disclosure, compared against the Loan Estimate, with your questions answered.
• Your walkthrough notes and any open repair items.

Who to contact for what

• Lender — loan terms, rate lock, document requests, the Closing Disclosure, anything that might change your finances.
• Escrow or title — the preliminary title report, closing funds and wiring, signing logistics, recording and possession timing.
• Agent (Alika) — contract deadlines, contingency removals, repair and credit negotiations, the walkthrough, coordination between everyone above.
• Attorney — legal questions about the contract, title matters, disputes or how the purchase interacts with a trust or other legal arrangement.
• Tax and insurance professionals — tax consequences of the purchase; coverage decisions.

Where Alika fits

Alika tracks the contract calendar with you, explains each request and form as it arrives, negotiates any late issues, coordinates the walkthrough, and stays in contact with escrow and your lender so that nothing falls between them. He will point you to the lender, escrow, an attorney or a tax professional when a question belongs there. If you are still at the beginning, the buying overview shows how the stages fit together, and current listings are one search away.

If you would rather talk it through than read further, call Alika at (909) 373-7214. A conversation is not an application and commits you to nothing.