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Buyer's Guide · Escrow & Closing

Home buying process step by step in California

From accepted offer to keys in 30–45 days: opening escrow, earnest money, inspections, the appraisal, removing contingencies, final walkthrough, and closing — each step in order.

DRE #02232009 · Licensed CA brokerage30–45 day closeEscrow explainedRebate at closing
Quick answer

After your offer is accepted, the California home buying process runs about 30–45 days: open escrow and deposit earnest money (1–3%), complete inspections and disclosures, get the appraisal and final loan approval, remove your inspection, appraisal, and loan contingencies in writing, do a final walkthrough, then sign, fund, and record. Escrow — handled by escrow and title companies, not attorneys — holds funds until every condition is met. Your rebate is applied at closing.

From accepted offer to keys

Once a seller accepts your offer, a 30–45 day clock starts. You open escrow, complete inspections and the appraisal, remove your contingencies, finalize your loan, and close. Here's each step in order, California-style.

This is the escrow-and-beyond detail that follows the big-picture how to buy a home in Southern California guide. If you're earlier in the journey, start there; if you're in contract or about to be, this page is your map.

What is escrow, exactly?

Escrow is a neutral third party that holds your funds and documents until every condition of the sale is met. In California, escrow and title companies handle this — not attorneys, as in some states. Escrow makes sure money and the deed only change hands when both sides have done what they promised. Your agent coordinates with escrow, the lender, and title so nothing slips.

The step-by-step process

Offer accepted & escrow opened

Your signed purchase agreement (the RPA) opens escrow. You deposit earnest money, typically 1–3% of the price.

Earnest money deposit

Held in escrow and applied to your down payment or closing costs at closing.

Inspections

Home inspection plus any specialty checks (termite, sewer, roof, chimney). You review findings and can renegotiate.

Disclosures

Sellers provide disclosures (TDS, natural hazard, HOA docs). Read them — they reveal a lot.

Appraisal

Your lender orders an appraisal to confirm the home is worth the price. A low appraisal means renegotiating or covering the gap.

Loan underwriting

The lender verifies everything and issues final approval. Keep your finances still.

Contingency removal

When satisfied, you remove loan, appraisal, and inspection contingencies in writing.

Final walkthrough

A last look to confirm the home's condition and that agreed repairs were done.

Signing & funding

You sign loan docs; the lender funds. Your down payment and closing costs are wired in.

Recording & keys

The deed records with the county, escrow closes, and the home is yours — rebate applied at closing.

Contingencies: your exit ramps

Contingencies let you back out or renegotiate without losing your deposit, if something specific goes wrong. The three big ones:

ContingencyProtects you if…Typical window
InspectionThe home has problems you can't accept~7–17 days
AppraisalThe home appraises below your price~17 days
LoanYour financing falls through~17–21 days

Windows are negotiable and set in your contract. Once removed, backing out usually means losing your earnest money — so removal is deliberate.

What you'll pay along the way

  • Earnest money — 1–3% up front, credited back to you at closing.
  • Inspections — a few hundred dollars each, paid as completed.
  • Appraisal — typically part of your loan costs.
  • Closing costs — 2–5% of price at the end. See buyer closing costs. Your rebate can offset these.

Mistakes during escrow

  • Making big financial moves. New credit or large purchases can blow up your loan.
  • Missing contingency deadlines. They're firm dates in your contract.
  • Skipping the final walkthrough. It's your last chance to catch issues.
  • Not reading disclosures. They often reveal the home's real story.

Expert tips

  • Calendar every deadline the day escrow opens.
  • Respond fast to lender and escrow requests to stay on schedule.
  • Keep finances frozen until after recording.

Frequently asked questions

How long does escrow take in California?
Most escrows run 30 to 45 days from accepted offer to closing. Cash purchases can close faster; complex deals or loan delays can take longer.
What is earnest money and do I get it back?
Earnest money is a good-faith deposit, typically 1–3% of the price, held in escrow. It's credited toward your down payment or closing costs at closing. If you back out within a valid contingency, you generally get it back.
What are contingencies in a home purchase?
Contingencies are conditions that let you renegotiate or cancel without losing your deposit — most commonly inspection, appraisal, and loan contingencies. You remove them in writing when satisfied.
Who handles escrow in California?
Escrow and title companies handle it, not attorneys as in some states. Escrow is a neutral third party that holds funds and documents until all conditions are met.
What happens if the appraisal comes in low?
You can renegotiate the price, cover the difference in cash, or, if you have an appraisal contingency, cancel without losing your deposit. Your agent will advise on the best move.
When do I get the keys?
At close of escrow — after you sign loan documents, the lender funds, and the deed records with the county. Your rebate is applied at this closing.

In contract or about to be?

We'll manage escrow, deadlines, inspections, and your lender so nothing slips — and apply your rebate at closing.

Disclaimer: Portfolio Home Realty is a licensed California real estate brokerage (DRE #02232009) serving Los Angeles County and Orange County. The buyer rebate is a portion of the buyer-side commission returned to eligible buyers at closing and is generally up to 1% of the purchase price, subject to lender approval and the seller offering buyer-agent compensation. Dollar figures on this page are illustrative estimates, not guarantees. This page is general information, not legal, tax, or lending advice — consult your CPA, attorney, or lender about your situation. Equal Housing Opportunity.