What Happens During Escrow and Closing in San Jose? (2026 Guide)

What Happens During Escrow and Closing in San Jose? A Clear 2026 Buyer Guide

After inspections and appraisal are underway, many buyers start asking a bigger-picture question:

• “What exactly is escrow?”

• “What happens between now and closing?”

• “When do I remove contingencies?”

• “What could delay the process?”

In San Jose, escrow and closing are where all the moving pieces come together — contracts, financing, inspections, disclosures, and final approvals.

This guide walks you through what happens during escrow and closing, step by step, so you know what to expect and how to avoid surprises in 2026.

For a full overview of the buying journey, start here:
👉 https://re38.com/san-jose-home-buying-process-guide

What Is Escrow?

Escrow is a neutral process managed by a third-party escrow company that:

• holds funds

• coordinates documents

• ensures contract terms are met

• protects both buyer and seller

Escrow does not represent either side — its role is to follow the contract precisely.

What Happens First in Escrow

Once escrow is opened:

• the purchase contract is received

• timelines are confirmed

• title work begins

• disclosures are delivered

• earnest money is deposited

If you’re unfamiliar with earnest money, review this first:
👉 https://re38.com/blog/what-is-earnest-money-how-much-is-normal-san-jose

Disclosures & Due Diligence

During escrow, buyers receive seller disclosures, which may include:

• property condition disclosures

• inspection reports (if pre-sale inspections were done)

• HOA documents (if applicable)

• known material facts

This is where buyers learn the most about the home.

For legal and disclosure context, see:
👉 https://re38.com/san-jose-real-estate-contracts-disclosures-tax-guide

Inspections & Appraisal During Escrow

Escrow runs in parallel with:

• buyer inspections

• appraisal ordered by the lender

• loan underwriting

Each step has its own timeline and contingency protection.

For deeper dives:

• Inspections → 👉 https://re38.com/blog/should-i-get-a-home-inspection-what-does-it-cover-san-jose

• Appraisal → 👉 https://re38.com/blog/how-does-the-appraisal-work-what-if-it-comes-in-low-san-jose

Contingency Removal

As escrow progresses, buyers decide whether to remove contingencies related to:

• inspections

• appraisal

• financing

Once contingencies are removed:

• the buyer’s commitment becomes firm

• earnest money typically becomes non-refundable

Understanding this step is critical.

For a full breakdown, review:
👉 https://re38.com/blog/how-do-contingencies-work-inspection-appraisal-financing

Loan Approval & Final Conditions

As closing approaches:

• underwriting issues final loan approval

• any remaining lender conditions are cleared

• closing figures are finalized

Avoid:

• job changes

• new credit inquiries

• large purchases

Stability matters at this stage.

For mortgage context, see:
👉 https://re38.com/san-jose-home-loan-mortgage-guide

Final Walkthrough

Just before closing, buyers complete a final walkthrough to:

• confirm the home’s condition

• verify agreed repairs were completed

• ensure the property matches expectations

This is not another inspection — it’s a confirmation step.

Signing & Closing Day

At closing:

• loan documents are signed

• remaining funds are wired

• title is recorded

• ownership officially transfers

Once recording is confirmed, you receive the keys.

Common Escrow Delays in San Jose

Even in 2026, escrow can be delayed due to:

• appraisal issues

• lender documentation delays

• HOA document timing

• title issues

• unpermitted work

Most delays can be managed with proactive communication and experience.

What You Should Do Next

Escrow doesn’t need to be stressful if you understand the process and timelines.

I help buyers:

• track escrow milestones

• understand disclosures

• manage inspections and appraisal

• coordinate with lenders and escrow

• close smoothly and on time

👉 If you want help navigating escrow and closing, reach out here:
https://re38.com/contact

📞 Questions About Escrow or Closing? Let’s Talk

The escrow process can feel overwhelming — but it doesn’t have to be.

A short conversation can help you understand where you are, what’s next, and how to close with confidence.

Zaid Hanna
408-515-1613
www.re38.com