What Happens When Escrow Closes on a Home Purchase?

Buying a home is thrilling, until you're buried under paperwork with a dozen professionals emailing you “urgent” requests. If you're wondering what happens when escrow closes, you're not alone.

Heads up: This moment is when the property officially changes hands. But it’s not just about getting the keys, it’s a series of final, critical steps. This guide will walk you through the process, cut through jargon, and prep you for the finish line so there are no surprises.

• Escrow closure marks the legal transfer of property to the buyer.
• Final walkthroughs, document signings, and fund transfers all happen during closing.
• Buyers should confirm title, insurance, and loan finalization before closing day.
• Knowing what happens at this stage can prevent costly mistakes and delays.

Escrow is a neutral third party that holds money and documents until all parts of the home transaction are complete. Think of it as a financial referee. Once everything checks out, they “close” the file, and you own a home.

Here’s what you’ll need to complete in the final stretch:

• Final Walkthrough: Usually 24–72 hours before closing, to ensure the home is in agreed-upon condition.
• Review Closing Disclosure (CD): This legally required document outlines your final loan terms, interest rate, monthly payments, and closing costs. By law, you must receive this at least 3 business days before closing.
• Secure Homeowners Insurance: Lenders usually require this before releasing loan funds.
• Wire Closing Funds: Your escrow officer will tell you the exact amount you need to wire for down payment and closing costs. Triple-check the wire instructions, wire fraud is real.

On the actual day of closing:

• Sign Final Documents: These include loan documents, the deed, and tax records. Some states allow e-signing; others require in-person notarization.
• Lender Funds the Loan: After your signature, the lender sends money to the escrow company.
• Escrow Pays Out: The escrow agent distributes money to the seller, real estate agents, and any other parties.
• Deed is recorded: The county recorder's office makes you the legal homeowner.

Pro Tip: Ownership isn't officially transferred until the deed is recorded, even if you’ve signed everything and wired the funds.

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• Not Reading the CD Carefully: Compare it with your Loan Estimate. Report any surprises ASAP.
• Last-Minute Credit Changes: Avoid new debt, big purchases, or late payments before closing. Lenders sometimes re-pull credit.
• Underestimating Closing Costs: Closing costs typically range from 2–5% of the home’s price.
• Not Asking Questions: Don’t be shy, ask your escrow officer, lender, or agent if anything is unclear.

Once escrow closes:

• You get the keys (woo!), often the same day or within 24 hours.
• You’ll receive a closing package with copies of all your documents.
• Set up utilities, update your address, and review your first mortgage payment date.

Buying a home is a big decision - and having the right information puts you ahead. But the real advantage comes from pairing smart research with a smarter way to buy.

When you use a reAlpha real estate company, you can be eligible to receive up to 1% of the home purchase price back as a credit at closing. Add reAlpha Mortgage, and that rebate can increase to up to 1.5% back, helping offset closing costs and keep more money in your pocket when it matters most.

The rebate is simple, transparent, and applied directly at closing - no complicated hoops, no delayed payouts. Just real savings tied to using a fully integrated homebuying experience.

See how much you could save:

• Check your eligibility
• Explore homes that fit your budget today.
• Your next move could come with thousands back at closing.

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