What Actually Happens Between Offer Accepted and Keys in Hand

Opening Escrow: The Starting Gun

Within a day or two of offer acceptance, both parties open escrow. An escrow company — or, in some states, a real estate attorney — serves as a neutral third party that collects the buyer's earnest money deposit and holds all key documents until every condition in the purchase contract is satisfied. Think of it as a trust-held handshake: neither side can access the funds until everyone has fulfilled their obligations.

At this stage, the buyer's lender (if financing is involved) also receives a copy of the signed purchase agreement and begins the formal loan application process. The lender will order an appraisal and begin underwriting — the process of verifying the buyer's financial picture in detail.

If you want to understand what's happening in parallel on the legal ownership side, see our guide on how a property's title is transferred from one owner to another.

Inspections, Appraisals, and the Negotiation That May Follow

The home inspection is one of the most consequential steps in this period. A licensed inspector examines the property's physical condition — structure, roof, plumbing, electrical systems, HVAC, and more — and delivers a written report. Buyers typically have a set window (often 7 to 14 days after offer acceptance) to complete this inspection and decide whether to proceed, request repairs, negotiate a price reduction, or exit the deal if the contract includes an inspection contingency.

Simultaneously, the lender orders an independent appraisal — an assessment of the property's market value by a licensed appraiser. Lenders won't finance more than a property is appraised for, so if the appraisal comes in below the agreed purchase price, it triggers a new negotiation: the seller may lower the price, the buyer may cover the gap in cash, or the deal may fall apart.

These two steps — inspection and appraisal — are where deals most commonly hit turbulence. Having a clear sense of your priorities before receiving results helps you respond quickly and strategically.

Title Search and Insurance

While inspections and appraisals are underway, a title company conducts a title search — a review of public records tracing the property's ownership history. The goal is to confirm the seller has the legal right to sell and that no unresolved claims, liens, unpaid taxes, or legal disputes are attached to the property.

If a title issue is discovered — sometimes called a "cloud on title" — it must be resolved before closing can proceed. This is relatively uncommon but can range from minor clerical errors to complex disputes involving past owners.

Once the title is confirmed clean, both the buyer and lender will obtain title insurance. The lender's policy is almost always required; the buyer's policy is optional but widely recommended. Title insurance protects against future claims that weren't discovered during the search.

The Final Days: Clear to Close and Settlement

When the lender finishes underwriting and all conditions have been met, they issue a "clear to close" — the green light that the loan is approved and the transaction can proceed to closing. At this point, the escrow company or closing attorney prepares the final settlement documents.

Federal law requires that buyers receive a Closing Disclosure at least three business days before settlement. This document itemizes every cost: loan terms, monthly payment, closing costs (typically 2% to 5% of the loan amount), prepaid taxes, insurance, and credits. Review it carefully against the Loan Estimate you received at the start of the loan process.

The final walkthrough — usually conducted within 24 hours of closing — is the buyer's last opportunity to confirm the home is in the expected condition before signing anything. On closing day itself, both parties (or their representatives) sign a stack of legal documents transferring ownership. The buyer wires their closing funds, the lender funds the loan, and once all money has cleared escrow, the deed is recorded with the local government. That recording is the moment legal ownership officially changes hands — and the keys are handed over.

Before you ever get to accepted-offer status, there's important groundwork to lay. Our pre-purchase checklist for buyers covers what to verify about a property before committing to an offer.

This article is intended as general educational information about the U.S. home purchase process and does not constitute legal, financial, or real estate advice. Processes, timelines, and requirements vary by state and individual circumstance. Consult a licensed real estate professional, attorney, or financial adviser for guidance specific to your situation.