Buying a home in Moreno Valley and wondering what happens after your offer is accepted? You are not alone. Escrow can feel mysterious the first time you go through it, especially if you are relocating to Riverside County. In this guide, you will learn the step-by-step timeline, what money is due and when, which contingencies protect you, and local customs that affect closing in Moreno Valley. Let’s dive in.
Escrow basics in California
Escrow is a neutral process where a licensed third party holds money and documents until everyone meets the terms of the contract and the county records the deed. In Moreno Valley, an escrow or title company follows written instructions from you and the seller based on your purchase contract and your lender’s requirements.
Key players include the buyer and seller, their real estate agents, the escrow officer, the lender, the title company, any homeowners association (if the property is in one), and the Riverside County Recorder for the final recording. The escrow officer coordinates steps, receives deposits, orders title work, prepares closing figures, and arranges recording. Escrow does not give legal advice; your agent and lender guide you through decisions.
Step-by-step Moreno Valley timeline
Your exact dates come from your contract, but here is how a typical Riverside County escrow flows when you are using financing.
1) Offer accepted and escrow opened (Day 0–1)
- Escrow is opened with the company named in your contract.
- You send your earnest money deposit to escrow as instructed.
- Escrow issues opening paperwork and requests initial documents from both sides.
2) Early setup and title work (Days 1–3)
- Escrow confirms your deposit and places funds in the escrow account.
- The title company starts the title search and prepares the preliminary title report.
- If the seller has a loan, escrow requests a payoff demand.
- If there is an HOA, the seller or listing agent orders the HOA resale packet.
3) Inspections and contingencies (often Days 7–17 or 10–21)
- You schedule a general home inspection and any specialty checks, such as pest or roof.
- Your lender orders the appraisal after you apply for the loan.
- You review seller disclosures and the preliminary title report.
4) Repairs, credits, and contingency decisions (Days 7–21)
- You request repairs or credits, or you remove contingencies per your contract.
- The seller completes agreed repairs or offers credits.
- Escrow and title work to resolve any title exceptions that need clearing.
5) Underwriting and final approval (Days 14–30)
- The lender underwrites your file and issues conditions.
- You provide updated documents and secure a homeowners insurance binder.
- The loan moves toward final approval and funding.
6) Final steps before closing (Days 24–45)
- Escrow prepares your closing figures and statements.
- You complete your final walkthrough 24–48 hours before closing.
- You wire the remaining down payment and closing funds to escrow.
7) Funding, recording, and keys (Closing day to Day +1)
- The lender funds your loan to escrow.
- Escrow records the deed and mortgage with the Riverside County Recorder.
- After confirmation of recording, funds are disbursed and you receive keys per instructions.
Typical escrow lengths in Riverside County: financed purchases often close in 21–30 days, cash deals can close in 10–14 days, and more complex files or special occupancy needs can extend to 45–60+ days. Your contract controls the actual dates.
What money you will need
Earnest money deposit (EMD)
- Purpose: shows good faith and is held by escrow.
- Typical amount: 1–3% of the purchase price in many California transactions, though it is negotiable.
- Payment: wire transfer is common. If you use a check, it may need to clear before escrow can rely on the funds.
Always verify wire instructions by calling the escrow company at a known phone number. Do not rely on phone numbers or links in an email. Confirm escrow’s receipt of your funds.
Final funds at closing
You will bring the rest of your down payment plus closing costs and prepaids like taxes and insurance. Escrow will provide a final figure so you can wire the correct amount in time for funding and recording.
Refunds and risk
Whether your EMD is refundable depends on your contingencies and the dates in your contract. If you cancel within a contingency window per the contract, you can typically recover your EMD. After you remove contingencies, canceling can put your deposit at risk.
Key contingencies buyers use
Contingencies give you time to verify the home and secure your loan. In Moreno Valley, buyers commonly use:
- Inspection contingency: time to complete home and specialty inspections, often 7–17 days.
- Loan/financing contingency: protects you if the lender cannot approve your financing, often 17–21 days.
- Appraisal contingency: allows options if the appraisal value is below the purchase price.
- Title contingency: time to review the preliminary title report and resolve issues.
- HOA document review: for HOA properties, time to review the resale packet.
- Seller disclosures: California requires seller disclosures that you should review and understand.
Track each deadline carefully so you can remove contingencies on time or request an extension if needed.
Local customs and county items
- Recording: Escrow records your deed and mortgage with the Riverside County Recorder to finalize your ownership.
- Transfer taxes and fees: Documentary transfer taxes and city fees vary by location. Verify current city and county rules for Moreno Valley before closing.
- Title insurance: A lender’s policy is usually required when you have a mortgage. An owner’s policy is optional but common. Who pays for which policy is negotiable and can vary by deal.
- HOA resale packet: If the home is in an HOA, the seller usually provides the HOA resale documents. These come with a fee and can take several days to arrive, so both sides should order early and build the timeline accordingly.
- Taxes and utilities: Property taxes and some costs are prorated at closing. Plan to set up utilities to start on your possession date.
Common bumps and how to handle them
- Low appraisal: You and the seller can renegotiate price, you can add cash, you can ask for reconsideration, or you can cancel if you are still protected by appraisal or loan contingencies.
- Loan denial near closing: If your financing contingency is still active, you may cancel and recover your deposit per the contract. If it was removed, your deposit may be at risk.
- Title defects: Escrow and title work to clear issues like liens or missing releases. If a defect cannot be cleared, you can object under your title contingency.
- HOA packet delays: The timeline can slip if the association is slow. Your contract may allow extensions or provide remedies.
- Wire fraud: Always verify wiring instructions by phone using a known number and confirm receipt of funds with escrow.
Buyer checklist: day one to closing
- Verify the escrow company and confirm wiring instructions by phone.
- Send your earnest money and get written confirmation of receipt.
- Apply for your loan and respond quickly to lender requests.
- Schedule inspections early within your inspection window.
- Secure your homeowners insurance binder and send it to your lender.
- Review disclosures, the preliminary title report, and HOA documents if applicable.
- Plan your final funds wire and arrange utility setup for your move-in date.
Seller checklist: keep escrow moving
- Complete all required California disclosures promptly.
- If in an HOA, order the resale packet early.
- Provide payoff authorization and contact details for any liens or loans.
- Confirm your forwarding address and coordinate final utility readings.
Example timelines
These are examples to help you picture the flow. Your contract sets the real deadlines.
Financed 30-day escrow
- Day 0: Offer accepted, escrow opened, EMD due within 3 days
- Days 3–7: Title prelim ordered, inspections scheduled
- Days 10–17: Inspection contingency period
- Days 17–21: Loan and appraisal contingency removal
- Days 21–30: Final underwriting, walkthrough, funding and recording
Cash 10–14 day escrow
- Day 0: Offer accepted and escrow opened
- Days 0–2: Immediate EMD deposit
- Days 2–5: Title prelim and quick review
- Days 7–10: Funds wired, recording, keys
Glossary: quick definitions
- Escrow: A neutral process where a third party holds money and documents until all conditions are met.
- Escrow officer: The neutral professional who manages funds, documents, and closing steps.
- Title company: Researches property ownership and issues title insurance policies.
- Earnest Money Deposit (EMD): Your good-faith deposit held in escrow.
- Preliminary Title Report (Prelim): A report listing recorded liens, easements, and other items that affect title.
- Owner’s title insurance: Optional policy that protects you against covered title defects.
- Lender’s title insurance: Required by most lenders, protects the lender’s interest.
- Contingency: A contract condition that must be satisfied or removed by a deadline.
- Transfer Disclosure Statement (TDS): California-required seller disclosure about property condition.
- HOA resale package: Governing documents and financials provided for HOA properties.
- Recording: The county’s official entry of the deed and mortgage, which finalizes ownership transfer.
- Proration: Splitting periodic costs like property taxes between buyer and seller at closing.
- Funding: When the lender sends your loan funds to escrow for disbursement.
- Close of escrow: When the deed records and funds disburse; you become the owner.
Ready to move forward?
You deserve a smooth, well-communicated escrow from offer to keys. If you want local guidance on timelines, costs, and how to keep your file on track in Moreno Valley, reach out to Kimberly Ybarra for a friendly, concierge-level game plan.
FAQs
How does escrow work for buyers in Moreno Valley?
- Escrow holds your deposit and documents, coordinates title, manages deadlines, and records the deed with Riverside County once all conditions are met.
How much earnest money is typical in Riverside County?
- Many California deals use 1–3% of the price as an EMD, but your amount is negotiable and set by your contract.
Who chooses the escrow company in a Moreno Valley sale?
- The purchase contract names the escrow holder; buyers and sellers can negotiate the choice during offer and acceptance.
How long is a financed escrow in Moreno Valley?
- A common range is 21–30 days, with cash deals sometimes closing in 10–14 days and more complex files taking longer.
What happens if the appraisal is lower than the price?
- You can negotiate a price change, add cash, seek reconsideration, or cancel if you are still protected by appraisal or loan contingencies.
What should I know about HOA documents in escrow?
- HOA resale packets can take several days and carry a fee; order early and review promptly to avoid closing delays.
How do I avoid wire fraud when sending escrow funds?
- Call your escrow officer at a trusted phone number to confirm wiring instructions and verify receipt immediately after sending funds.
