The short answer
After your offer is accepted, the home goes into escrow: your earnest money is deposited with a neutral third party, the title is checked, and your lender finalizes the loan. Within the first week or two you schedule a home inspection and can negotiate repairs or credits, and the lender orders an appraisal to confirm the home’s value. Most purchases close 30 to 45 days after the offer is accepted.
Go to the inspection. An hour with the inspector teaches you more about the house than the report ever will.
What does escrow mean when buying a house?
Escrow is a neutral holding period. An escrow or title company holds your earnest money and the paperwork, follows the instructions in your contract, and releases funds only when every condition is met. It protects both sides: the seller knows you are committed, and your money does not go to the seller until the deal closes.
What is the typical timeline?
| When | What happens |
|---|---|
| Days 1-3 | Earnest money deposited; escrow opened; you apply formally for your loan |
| Days 1-10 | Home inspection and any specialist inspections; repair negotiation |
| Days 7-21 | Appraisal ordered and completed; title search and title commitment issued |
| Days 14-30 | Underwriting reviews your file and issues conditions; homeowner’s insurance bound |
| 3 business days before closing | You receive your Closing Disclosure |
| Days 30-45 | Final walk-through, signing and closing |
Your contract sets the exact deadlines. Missing one – especially the inspection or financing deadline – can cost you the right to cancel and keep your deposit.
What does a home inspection cover?
A general home inspection is a visual check of the structure, roof, attic, foundation, electrical, plumbing, heating and cooling, windows, doors and built-in appliances. It usually takes two to four hours and costs a few hundred dollars depending on the home’s size and age. Depending on what the inspector finds and where you live, you may add specialist inspections for the sewer line, radon, termites or other wood-destroying pests, mold, a pool or the chimney.
Go to the inspection. An hour walking the house with the inspector teaches you more than the report ever will.
Can I negotiate after the home inspection?
Yes, within your inspection period. Focus on safety issues, systems near the end of their life and anything the lender will require – not cosmetic items. You can ask the seller to:
- Make specific repairs before closing, done by licensed contractors with receipts
- Give you a credit toward closing costs so you can handle the repairs yourself
- Reduce the price
If you cannot agree, the inspection contingency usually lets you cancel and keep your earnest money, as long as you act before the deadline.
What happens if the home appraises low?
The lender will only lend based on the lower of the price or the appraised value. If the appraisal comes in low, you can ask the seller to reduce the price, cover the gap with extra cash, meet somewhere in between, challenge the appraisal with better comparable sales, or – if you have an appraisal contingency – cancel the purchase.
How do I protect myself from wire fraud?
Criminals target home buyers with fake emails that look like they come from the title company, asking you to wire your closing funds to a new account. Before you send any money, call the title company at a phone number you found independently – never one from the email – and confirm the wiring instructions. Legitimate instructions do not change by email at the last minute.
Common questions
How long does escrow take?
Most financed purchases close in 30 to 45 days. Cash purchases can close in as little as one to two weeks.
Who pays for the home inspection?
The buyer usually pays for the inspection, typically at the time of the inspection. It is money well spent, because it is your best chance to learn about the home before you own it.
What is a title search?
The title company checks public records to confirm the seller owns the home and that there are no unpaid liens, judgments or claims against it. Title insurance then protects you and your lender against problems the search missed.
Can a buyer back out during escrow?
Yes, if a contingency allows it and you give notice before its deadline – for example, a failed inspection, a low appraisal or a loan denial. Backing out for other reasons can mean losing your earnest money.
Keep every deadline on track
I track every date in your contract, attend the inspection, negotiate repairs or credits and keep the lender and title company moving. When everything is clear, it is time for closing and moving in.