The Escrow Timeline for San Jose Homebuyers

Buying a home in San Jose is exciting, but once your offer is accepted the clock starts ticking. Escrow brings a lot of moving parts, and it is normal to feel unsure about the steps, deadlines, and who does what. With a clear game plan, you can keep things on track and avoid last‑minute surprises.

In this guide, you will learn what escrow means in California, the typical step‑by‑step timeline for San Jose buyers, how contingencies and deposits work, and common local delays to plan around. You will also get a practical checklist to move faster and reduce risk. Let’s dive in.

What escrow means in San Jose

In California, escrow is a neutral third‑party process. The escrow officer holds funds, follows written instructions, coordinates with the title company and your lender, and disburses money when all conditions are met. The title company researches the chain of title, issues a preliminary title report, and provides title insurance for the buyer and the lender.

Your lender handles the appraisal and underwriting and issues the final loan approval. Your real estate agent guides deadlines, documents, and communication between all parties. For a financed purchase in San Jose, you can usually expect escrow to take about 30 to 45 days. Well‑prepared files can close in 21 to 30 days, and cash deals may close sooner if title is clear and funds are ready.

One timing rule you should know: under federal law, your lender must provide the Closing Disclosure at least 3 business days before you sign your loan. This timing is not optional and can affect your closing date if it is delayed.

The typical escrow timeline

Every contract is different, but the sequence below reflects common timing in San Jose. Use it as a roadmap and follow your exact contract dates.

Day 0: Offer accepted and contract signed

• The seller accepts your offer and both parties sign the purchase agreement.
• You and your agent review deadlines for deposits, inspections, contingencies, and closing.

Days 0–2: Open escrow and deposit earnest money

• Escrow is opened and you send your initial earnest money deposit according to the contract.
• This deposit shows good faith and is held in escrow.
• Typical Bay Area deposits are often 1 to 3 percent of the purchase price, but the exact amount is negotiated in your offer.

Days 1–5: Escrow setup and title order

• Escrow issues an escrow number and opening package to both sides.
• The title company orders the preliminary title report so everyone can review liens, easements, and ownership history.

Days 0–3: Seller disclosures and HOA package

• The seller provides required disclosures such as the Transfer Disclosure Statement and Natural Hazard Disclosure. If the property is in an HOA, the seller requests the HOA resale documents.
• Review these materials early so you can ask questions within your inspection period.

Days 3–10: Inspection period

• Schedule a general home inspection right away. Many buyers also order pest/termite, sewer scope, roof, and HVAC inspections.
• Use findings to request repairs or credits, or to cancel within contingency timelines if needed.

Days 0–7: Full loan application

• If you are financing, your lender moves from preapproval to full underwriting and orders the appraisal.
• Respond quickly to document requests to keep the file moving.

Days 7–21: Appraisal and lender underwriting

• The appraiser visits the property, completes the report, and sends it to your lender.
• Your lender reviews the appraisal and your documents and issues loan conditions.

Days 7–21: Title review and clearance

• You and your agent review the preliminary title report.
• If there are liens or exceptions to clear, the seller and title company work to resolve them.

Days 10–21: Remove contingencies

• Buyers commonly remove inspection, loan, and appraisal contingencies within roughly 17 to 21 days, depending on the contract.
• When contingencies are removed, you are committing to move forward. Canceling after removal can put your deposit at risk based on the contract.

Days 21–35: Final underwriting and clear‑to‑close

• Your lender completes final review, confirms homeowners insurance, and issues clear‑to‑close.
• You receive your Closing Disclosure at least 3 business days before you sign loan documents.

Day −1 to 0: Final walkthrough and signing

• You complete a final walkthrough to confirm the home’s condition and any agreed work.
• You sign loan and escrow documents. Escrow provides wire instructions for your final funds.

Day 0: Close escrow and recording

• Escrow confirms funds, disburses money, and records the deed with the Santa Clara County Recorder.
• Keys are released according to your contract instructions.

Contingencies, deposits, and documents

Understanding how each piece affects timing will help you make better choices.

Earnest money deposit (EMD)

• Purpose: Shows good faith and is held in escrow.
• Timing: Usually due within 1 to 3 business days after acceptance, based on your contract.
• Amount: Often 1 to 3 percent of the price in local practice, but negotiated.
• Risk: After you remove contingencies, canceling without a protected reason may put the deposit at risk. Always follow your contract.

Inspection contingency

• What it does: Gives you the right to inspect and negotiate repairs, credits, or cancel if serious issues are found within the timeline.
• Timing: Often 5 to 17 days, depending on the contract.
• Common San Jose inspections: General, pest/wood‑destroying organisms, sewer scope, roof, HVAC, and specialty checks as needed.

Loan contingency

• What it does: Protects you if you cannot secure financing.
• Timing: Commonly 17 to 24 days in many contracts, but confirm your exact terms.
• Notes: Fast response to lender requests helps prevent contingency extensions.

Appraisal

• Role: Ordered by the lender to confirm value for the loan.
• Timing: Often 7 to 14 days from order to report, but can vary with demand and property type.
• If value is below price: You may renegotiate, bring cash to cover the gap, or cancel if your contingency allows.

Title and vesting

• The preliminary title report outlines liens, easements, and how ownership will be stated.
• Clearing title issues can extend escrow, so review the report as soon as it is available.

HOA documents

• For condos and planned communities, the HOA resale package includes CC&Rs, bylaws, budgets, and rules.
• Delivery times vary and delays are common, so build in extra review time.

Closing Disclosure and final funds

• Your lender must deliver the Closing Disclosure at least 3 business days before you sign.
• Review it carefully to confirm your final cash to close and monthly payment. If there are changes, ask your lender to re‑issue quickly to avoid delays.

Who pays what

• In California, many costs are negotiable and can vary by county and current practice.
• Sellers often pay for the owner’s title policy in many markets, while buyers usually pay lender fees and their lender’s title policy. Your escrow officer can confirm exact splits for your transaction.

Local factors in Santa Clara County

Every market has its quirks. Here are common San Jose factors that affect timing.

• Competitive timelines: In multiple‑offer situations, sellers may favor shorter escrows and stronger deposits. Shorter contingency periods increase risk, so match speed with preparation.
• HOA and condo resales: HOA document timing can be slow. Order right away and plan review time before removing contingencies.
• Pest/termite items: Termite inspections and treatments are common. If repairs are needed, allow time for scheduling and re‑inspection.
• County recording: Electronic recording is common, but processing times vary. Your escrow officer will advise on the earliest possible recording day and any cut‑off times.
• Title exceptions and liens: Payoffs for prior loans, contractor liens, or HOA liens can add steps. Early title review helps avoid last‑minute surprises.
• Permits and compliance: Inspections sometimes uncover unpermitted work. Discuss options with your agent and escrow if this arises.
• Language access: San Jose is diverse. If you prefer bilingual materials or interpretation, ask your escrow or title team early so they can accommodate.

How to move faster and reduce risk

• Get full preapproval before you shop. Share documents early so underwriting can move quickly.
• Schedule inspections immediately after acceptance. Book specialty inspections at the same time.
• Review disclosures as soon as you receive them. Ask questions within your contingency window.
• Respond to lender requests within 24 hours. Keep bank statements and pay stubs handy.
• Choose homeowners insurance early. Provide proof to your lender before clear‑to‑close.
• Confirm wire instructions by phone with your escrow officer before sending any funds.

Wire‑fraud safety checklist

Wire fraud is a real risk. Protect yourself with these simple steps.

• Call your escrow officer at a known, published number to verify wire instructions before sending funds.
• Do not trust emailed changes to wiring instructions. Always verify by phone.
• Use your bank’s verified contact methods for large transfers and set up alerts.
• Send wires early in the day and save confirmations for escrow.

Final walkthrough and closing day

Your final walkthrough is typically the day before or the morning of closing. You confirm the home’s condition and that agreed repairs, if any, are complete. After you sign loan documents and escrow confirms funds, the title company records the deed with Santa Clara County. Once recording is confirmed, you receive keys according to your contract.

30–45 day timeline at a glance

• Day 0: Offer accepted
• Days 0–2: Open escrow and deposit earnest money
• Days 1–5: Title order and escrow opening package
• Days 0–3: Seller disclosures and HOA request
• Days 3–10: Inspections and requests for repairs
• Days 0–7: Full loan application and appraisal ordered
• Days 7–21: Appraisal in, lender underwriting, and title clearance
• Days 10–21: Contingency removals per contract
• Days 21–35: Final underwriting and clear‑to‑close; Closing Disclosure delivered 3 business days before signing
• Day −1 to 0: Final walkthrough and signing
• Day 0: Recording and keys

Practical buyer checklist

• Before you offer:
  • Get full preapproval and discuss deposit and contingency strategy with your agent.
• Right after acceptance:
  • Send your earnest money deposit, schedule inspections, and send documents to your lender.
• During escrow:
  • Review disclosures, monitor appraisal scheduling, and clear any lender conditions.
• Three days before closing:
  • Review your Closing Disclosure, confirm final funds, and verify wire instructions by phone with escrow.
• Closing day:
  • Complete the walkthrough, sign, and confirm recording.

Ready to talk timelines?

If you want a clear plan for your specific property, a local escrow timeline, and bilingual support, reach out for a conversation. You will get hands‑on guidance from offer to keys. Connect with Louis Ponce to get started.

FAQs

How long does escrow take for a financed San Jose purchase?

• Most financed escrows take about 30 to 45 days, depending on lender speed, appraisal timing, title clearance, and HOA documents.

What is the earnest money deposit and when is it due?

• It is a good‑faith deposit, often 1 to 3 percent of the purchase price in local practice, typically due within 1 to 3 business days after the seller accepts your offer.

When do I remove contingencies in a California contract?

• Many buyers remove inspection, loan, and appraisal contingencies within roughly 17 to 21 days, but your exact deadlines come from your signed contract.

What happens if the appraisal comes in low?

• You can renegotiate price, bring extra cash to cover the difference, or cancel if your appraisal or loan contingency allows.

What is the Closing Disclosure and why does it affect timing?

• The Closing Disclosure lists your final loan terms and costs; federal rules require you receive it at least 3 business days before signing, which can impact your closing date.

Why do HOA documents sometimes delay closing?

• HOA resale packages can take several days to a few weeks to arrive, and you will want time to review them before removing contingencies.