You’ve Signed the Purchase Agreement—Now What? A Step-by-Step Guide to What Happens Next in a California Home Purchase

Buying a home is one of the most exciting milestones in life. If you’ve just signed a purchase agreement and secured mortgage financing for a home in California—congratulations! That’s a huge step. But don’t pop the champagne just yet—there’s still a journey ahead before you get the keys and call it your own.

Here’s what happens next after you’ve signed on the dotted line.

1. Escrow is Officially Opened

In California, escrow is a neutral third party that ensures all the terms of the real estate contract are met before money and property change hands. Once the purchase agreement is signed, the buyer typically deposits earnest money into the escrow account—usually 1–3% of the purchase price.

Escrow holds this money safely while coordinating the rest of the transaction. Think of it as your transaction’s command center.

2. The Lender Begins the Loan Process

Even if you were pre-approved, now the real work begins for your lender. They’ll order a full loan underwrite, which includes:

• Verifying your income, employment, assets, and credit again

• Ordering a home appraisal

• Finalizing the loan estimate and preparing your Closing Disclosure

Your lender may ask for additional documents throughout this time, so staying responsive is key to avoiding delays.

3. The Home Appraisal is Completed

Your lender will order an appraisal to make sure the home is worth the amount you’re borrowing. The appraiser evaluates the home’s condition, location, size, and features, then compares it to recent sales nearby.

• If the appraisal comes in at or above the purchase price, great—you’re good to go.

• If it comes in below, you’ll need to negotiate. Options include asking the seller to lower the price, paying the difference in cash, or challenging the appraisal with additional comps.

4. Home Inspections Take Place

California homebuyers typically schedule a home inspection within the first 7–10 days of escrow. The inspector checks the home’s structure, systems, and safety concerns, flagging anything that might be a red flag.

Depending on what’s found, you may:

• Request repairs from the seller

• Ask for a credit to make repairs yourself

• Renegotiate the price

• Or, in some cases, back out if the issues are too big (and within your inspection contingency period)

Don’t skip the inspection—it’s one of the most important parts of the process.

5. Disclosures and Reports Are Reviewed

California law requires sellers to provide several disclosures and reports about the condition of the property and any known issues. You’ll likely review:

• The Transfer Disclosure Statement (TDS)

• The Natural Hazard Disclosure Report (NHD)

• HOA documents (if applicable)

• Termite/pest inspection report

• And more, depending on the property

This is your opportunity to get a full picture of what you’re buying—and potentially raise concerns or requests with the seller before you proceed.

6. Loan Approval and Contingency Removal

Once your lender approves your loan and you’re satisfied with the inspection and disclosures, you’ll remove your contingencies. This is a big milestone in the escrow process.

In California, buyers typically have contingencies for:

• Inspection

• Appraisal

• Loan approval

When you remove contingencies, you’re saying: “I’m fully committed.” If you back out afterward, you could forfeit your earnest money deposit—so be sure you’re ready.

7. Final Walkthrough

Usually conducted a few days before closing, the final walkthrough lets you verify that:

• The home is in the same condition as when you agreed to buy it

• Any agreed-upon repairs were completed

• Nothing has been removed or damaged

It’s not another inspection—it’s more of a final check to ensure you’re getting what you paid for.

8. Signing Loan and Escrow Documents

Once everything checks out, you’ll sign your final loan documents and closing paperwork, usually at the escrow office or through a mobile notary.

Bring your ID and be ready for a lot of signatures—it’s a thick stack. You’ll also wire in your down payment and closing costs (or bring a cashier’s check).

In California, both buyers and sellers typically sign their documents a few days before the official close of escrow.

9. Funding and Recording

After all documents are signed, your lender sends the funds to escrow. Then, escrow sends everything to the county recorder’s office. Once the grant deed is recorded in your name, the home is legally yours!

You’ll usually hear those magic words from your agent: “You’re on record!” That means you’ve closed.

10. Welcome Home!

The keys are now yours! In California, you usually receive the keys on the day the home is recorded (not at the signing table like in some other states).

Take a deep breath. Celebrate. Move in. You did it.

What to Expect Emotionally

The process from signing to closing usually takes about 30 days in California (though it can be shorter or longer). Expect a few emotional highs and lows along the way. The paperwork is dense, the process is detailed, and there will likely be moments of stress.

But you don’t have to do it alone—your real estate agent, loan officer, escrow officer, and sometimes even a transaction coordinator are all part of the team to guide you through.

With the right support, some preparation, and a bit of patience, that home you signed for will be yours before you know it.

Thinking about buying a home in California? If you’re a first-time buyer or making a move, knowing what to expect helps you feel empowered every step of the way. Reach out to a trusted agent who can guide you from signed contract to keys in hand!