The Escrow Period: An Overview
Once your offer is accepted, you enter escrow - the period during which all conditions of the sale are completed before transferring ownership. In San Diego, escrow typically lasts 30-45 days, though some transactions close faster and others extend to 60 days. During escrow, you will complete inspections and contingency removals, the lender will process your loan, title research ensures clear ownership, and final documents are prepared for signing. Escrow is managed by an escrow officer at a title company who serves as a neutral third party, coordinating between buyer, seller, agents, and lenders
Your agent will guide you through each step and ensure nothing falls through the cracks.
Week 1: Opening Escrow and Initial Steps
Immediately after offer acceptance, several processes begin. Earnest money deposit is typically due within 3 days of acceptance - usually 1-3% of purchase price deposited into escrow. Title search is ordered to research the property's ownership history and identify any liens or encumbrances. Inspections should be scheduled immediately since you typically have 17 days (or as negotiated) to complete all inspections and contingency removals
Loan processing begins in earnest as you provide updated documents to your lender: pay stubs, bank statements, and any requested items. Homeowners insurance quotes should be obtained since you will need a policy before closing. This first week sets the tone - responsive communication and quick action prevent delays.
Weeks 2-3: Inspections and Contingencies
The middle of escrow focuses on due diligence. Complete all inspections including general, termite, and any specialized inspections for your property. Review inspection reports and discuss findings with your agent. Request for repairs or credits - if inspections reveal issues, you may negotiate with the seller for repairs or price adjustments
Remove contingencies by the agreed-upon dates. Contingency removal is a significant step that commits you to the purchase. Appraisal is ordered by your lender. The appraiser visits the property to confirm value supports the loan amount
Continue responding promptly to lender requests. Delays in providing documents delay your close.
Weeks 4-5: Final Loan Approval and Preparation
As closing approaches, the focus shifts to finalizing details. Final underwriting review involves your lender confirming all conditions are met for loan approval. Clear to close means you receive final loan approval confirming all conditions are satisfied. Review closing disclosure carefully - you will receive this document at least 3 business days before closing, showing all loan terms and costs
Wire fraud prevention requires verifying wire instructions directly with your escrow officer by phone using a number you know is legitimate. Never wire funds based on email instructions alone. Final walkthrough is scheduled 1-5 days before closing to confirm the property is in agreed-upon condition. Coordinate moving logistics since you will receive keys after signing and funding (typically same day).
Closing Day: Signing and Recording
On closing day, you will sign final documents - this typically takes 45-90 minutes at the title company office or with a mobile notary. You sign the mortgage note (promise to repay the loan), deed of trust (secures the loan against the property), and numerous disclosures and certifications. Wire funds should be sent the day before or morning of closing per escrow instructions. Recording happens after the seller signs, all funds are received, and the title company records the deed with San Diego County
This typically occurs by early afternoon. Keys are released once recording is confirmed. Your agent will coordinate key pickup or delivery. Congratulations - you are a homeowner.
San Diego Closing Costs Breakdown
Buyers in San Diego typically pay 2-5% of the purchase price in closing costs. Major components include lender fees (origination, underwriting, processing) at $2,000-$5,000 variable. Title insurance and escrow fees are approximately $2,500-$4,000 depending on price. Prepaid items include property taxes, homeowners insurance, and interest prorated from closing to first payment
Recording fees are approximately $100-$200. Transfer tax is $1.10 per $1,000 of sale price. Home warranty (optional) costs $400-$600 for first year coverage. Your Loan Estimate and Closing Disclosure itemize all costs
Negotiate with sellers for credits when possible, and compare lender fees when shopping for mortgages.