Congratulations! You’re well on your way to owning your dream home. To ensure a smooth escrow and settlement process, follow these key steps and work closely with your real estate professional for expert guidance.

Understanding Your Down Payment & Escrow Process

Your down payment is a crucial part of the home-buying process. While the amount you put down depends on your mortgage terms, a larger down payment reduces your loan amount and monthly payments. During this time, an escrow or settlement company will act as an impartial third party to hold your deposit, manage paperwork, and coordinate key steps in the transaction. In some cases, an attorney or broker’s trust account may also hold the deposit. Be sure to have sufficient funds available to cover this check.

If the sale proceeds as planned, your deposit will go toward the final purchase price. However, if the sale falls through, you may be entitled to a refund—minus any applicable cancellation fees. In some situations, the seller could retain the deposit as liquidated damages, so it’s wise to consult an attorney before finalizing your contract terms.

What Happens During Escrow?

The escrow process typically lasts around 30 days, but this can vary. During this period, all contractual obligations must be fulfilled before closing. Here’s what to expect:

1. Home Inspection – Conduct this early to identify any issues that may affect the sale. If major problems arise, you may negotiate repairs or reconsider the purchase.

2. Financing Approval – Secure your mortgage within the agreed timeline. If financing falls through and no extension is granted, you’ll need to decide whether to move forward or cancel the contract.

3. Title Review – Ensure the seller provides a clear title with no outstanding liens or disputes. Work with a title officer or attorney to review the report.

4. Homeowner’s Insurance – Most lenders require proof of insurance before closing. Start this process early, especially if additional coverage (fire, flood, earthquake) is needed.

5. Utility Setup – Contact local providers to schedule utility activation for your move-in date.

6. Final Walk-Through – Inspect the home to confirm it’s in agreed-upon condition. Ensure fixtures and features included in the contract are still in place.

Welcome Home!

Once all steps are completed and the sale is finalized, congratulations! You’re now the proud owner of a new home. With careful planning and expert guidance, your escrow and settlement process can be a seamless transition to homeownership.