For The People Real Estate Brokerage LLC
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Closing Steps

From accepted offer to keys in hand — here's exactly what happens during escrow in Arizona, what you need to do, and what to bring on closing day.

30–45 DAYS TO CLOSE (FINANCED)
8 KEY MILESTONES
2–4% TYPICAL CLOSING COSTS
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Arizona uses escrow — not attorney closings. Unlike many states, Arizona closings are handled by a licensed title & escrow company. Buyers and sellers sign separately — you typically never sit at the same table. Once all funds are in and documents are signed, the deed records with the county and you get your keys.

The Closing Timeline

A typical financed purchase in Arizona takes 30–45 days. Here's what happens at each stage.

Day 0

Offer Accepted — Escrow Opens

Your signed contract goes to the title/escrow company. Escrow is officially open and you receive an escrow number. The clock starts now.

  • Deposit earnest money by the deadline in your contract (typically 1–3 days)
  • Your agent confirms escrow is open and provides the escrow officer's contact
  • Title search begins — looking for liens, ownership history, or exceptions
  • If there's an HOA, resale documents are ordered immediately
Action Required: Wire or deliver your earnest money immediately. Missing the deadline can void your contract.
Days 1–10

Inspections & Due Diligence

Your inspection period is your opportunity to learn everything about the property. In Arizona, the standard inspection period is typically 10 days — act fast.

  • Schedule your general home inspection within 24–48 hours of acceptance
  • Order any add-on inspections: pool, roof, sewer scope, termite/WDO
  • Review the Seller's Property Disclosure Statement (SPDS)
  • Review the CLUE report (insurance claims history)
  • Submit an Inspection Notice (BINSR) if you want repairs or credits
  • Seller has 5 days to respond — you can accept, negotiate, or cancel
Arizona Tip: Termite/WDO inspections are required by most lenders in AZ. Pool inspections and sewer scopes are highly recommended — don't skip them.
Days 5–21

Appraisal & Loan Processing

Your lender orders the appraisal and begins underwriting. This is the most documentation-intensive phase — respond to your lender quickly to avoid delays.

  • Lender orders the appraisal (typically takes 7–10 business days to return)
  • Underwriting reviews your income, assets, employment, and credit
  • Provide any requested documents to your lender within 24 hours
  • If appraisal comes in low, you'll negotiate a price reduction, pay the gap, or cancel
  • HOA resale documents arrive — you have 5 days to review and cancel if needed
Do NOT: Open new credit cards, make large purchases, change jobs, or move large sums of money during this period. Any of these can delay or kill your loan approval.
Days 10–25

Title Search & Insurance

The title company examines the property's history to ensure the seller has the legal right to sell and that no outstanding claims exist against it.

  • Title commitment issued — lists any exceptions or liens to be cleared
  • Review the title commitment and ask your agent about any exceptions
  • Owner's title insurance is strongly recommended — protects you after closing
  • Lender's title insurance is required if you're financing
  • Any clouds on title (old liens, unpaid taxes) must be resolved before closing
Arizona Tip: Owner's title insurance is a one-time fee paid at closing. It protects you permanently against claims that arise after you buy — it's worth it.
Days 21–27

Clear to Close & Final Approval

"Clear to Close" (CTC) is the green light from your lender — all conditions have been satisfied and the loan is approved. This is a major milestone.

  • Lender issues Clear to Close once all underwriting conditions are met
  • Escrow prepares the final settlement statement with all prorations and fees
  • You receive the Closing Disclosure (CD) — federal law requires 3 business days to review before signing
  • Review the CD carefully — compare to your original Loan Estimate
  • Confirm the exact wire amount with your escrow officer by phone (not email alone)
  • Purchase homeowners insurance and send the binder to your lender and escrow
Wire Fraud Alert: Always verify wire instructions by calling your escrow officer directly at a number you already have on file. Never wire money based on instructions received by email alone.
Day Before Closing

Final Walkthrough

Your last chance to verify the home is in the agreed-upon condition before you sign. This is not the time to find new problems to negotiate — it's a verification check.

  • Confirm all agreed repairs have been completed — ask for receipts if applicable
  • Test all appliances, HVAC, plumbing, and electrical that were included
  • Verify all seller-owned items have been removed and buyer-included items remain
  • Check for any new damage that may have occurred after your inspection
  • Run water in all faucets, flush toilets, test garage doors and locks
  • Note any concerns immediately — contact your agent before you sign
Bring a checklist. Walk through every room methodically. Take photos or video as you go. If anything is wrong, your agent needs to know before closing documents are signed.
Closing Day

Sign & Fund

You'll meet with an escrow officer or notary to sign your loan and closing documents. In Arizona, this is usually a separate appointment from the seller — plan for 1–2 hours.

  • Sign loan documents (note, deed of trust, truth-in-lending disclosures)
  • Sign the settlement statement confirming all debits and credits
  • Confirm wire funds have been received — or deliver cashier's check
  • All parties named on title must be present (or have a notarized Power of Attorney)
  • After signing, your package returns to the lender for final review (24–48 hours)
  • Once lender approves, they fund the loan and escrow disburses all funds
Per Arizona contract: Loan documents must be signed no later than 3 days prior to the closing date. Wire funds early — they need time to clear before the deed can record.
Closing Day

Recording & Keys 🏠

Once all funds are received, the title company submits the deed to the county recorder. When it records, escrow is officially closed — and you own your home.

  • Escrow submits the deed to the county recorder (Maricopa, Pima, etc.)
  • Recording confirmation comes back — escrow notifies both agents
  • Keys are released only after recording is confirmed — not before
  • You receive your closing package: title policy, recorded deed, settlement statement
  • Store your title insurance policy and closing documents in a safe place — permanently
You're a homeowner. Change the locks on day one, set up utilities in your name, and contact your HOA if applicable. Congratulations — For The People is proud to have represented you.

What to Bring to Closing

Your escrow officer will confirm the exact list, but plan to have all of these ready.

Government-Issued Photo ID

Required

Arizona notary requirements are strict. Bring a valid U.S. driver's license, state ID, passport, or military ID. All parties named on title must present ID.

Funds to Close

Required

Wire the exact amount from your Closing Disclosure to escrow's bank account — confirmed by phone first. Cashier's checks are accepted; personal checks are not. No cash.

Homeowners Insurance Binder

Required

Your lender needs proof that your homeowners insurance policy is active before funding. Send the binder to your lender and escrow before closing day.

Closing Disclosure

Bring a Copy

Your lender must provide this at least 3 business days before closing. Review every line — compare to your original Loan Estimate. Bring it as your reference document.

Purchase Contract & Addendums

Bring a Copy

Bring your purchase agreement and any repair addendums. If questions arise about agreed terms, repairs, or included items, you'll have your reference on hand.

Wire Confirmation

If Wiring Funds

Bring printed confirmation that your wire transfer was sent. This helps the escrow officer verify funds are incoming if they haven't posted yet at the time of your appointment.

Typical Arizona Closing Costs

Exact amounts depend on your loan type, purchase price, and lender. Your Closing Disclosure lists every fee — review it carefully.

Cost Item Who Pays Typical Amount Notes
Loan Origination Fee Buyer 0.5–1% of loan Negotiable with lender
Appraisal Fee Buyer $450–$700 Paid to lender upfront or at closing
Title & Escrow Fees Split / Negotiable $1,200–$2,500 Varies by purchase price
Owner's Title Insurance Split / Negotiable $500–$1,500 One-time fee — highly recommended
Lender's Title Insurance Buyer $300–$800 Required when financing
Recording Fees Buyer $30–$100 Paid to the county recorder
Prepaid Property Taxes Buyer Prorated at closing AZ taxes paid in arrears — credited on HUD
Prepaid Homeowners Insurance Buyer First year premium Must be active before funding
HOA Transfer Fee Split / Negotiable $150–$500 If property is in an HOA
Earnest Money Deposit Buyer 1–3% of purchase price Applied toward down payment at closing
Arizona does not have a state real estate transfer tax, which saves buyers money compared to many other states.

During Escrow: Do's & Don'ts

Your financial profile is being verified continuously from contract to closing. Protect your loan approval.

DO
  • Respond to your lender's document requests within 24 hours
  • Keep paying all existing bills and loans on time
  • Maintain your current employment status
  • Keep bank accounts at the same institution
  • Communicate with your agent daily during the process
  • Get homeowners insurance quotes early — send the binder to escrow ASAP
  • Verify wire instructions by phone before sending any money
  • Save every document your lender sends you
  • Attend the home inspection in person
  • Do a thorough final walkthrough — every room, every system
DON'T
  • Open new credit cards or lines of credit
  • Make large purchases (furniture, cars, appliances — wait until after closing)
  • Change jobs or become self-employed
  • Move large amounts of money between accounts without notifying your lender
  • Co-sign on any other loans
  • Let any existing accounts go delinquent
  • Wire money based on email instructions alone — always verify by phone
  • Skip any lender-requested document — respond to everything
  • Assume anything is "handled" — stay in contact and confirm at every step
  • Start repairs or changes to the home before it records in your name

Key Terms to Know

Real estate has its own language. Here are the terms you'll hear most during closing.

Escrow
A neutral third party (the title/escrow company) that holds all funds and documents until all conditions of the sale are met. Arizona requires escrow for all real estate transactions.
Earnest Money Deposit (EMD)
Your "good faith" deposit paid when the contract is accepted. Typically 1–3% of the purchase price. Applied toward your down payment at closing.
Clear to Close (CTC)
The lender's signal that all underwriting conditions are satisfied and the loan is approved. This is the green light to schedule your signing appointment.
Closing Disclosure (CD)
A federal document from your lender listing all loan terms and closing costs. You must receive it at least 3 business days before signing — review every line.
Title Insurance
Protects you against claims on the title that existed before you purchased (liens, back taxes, ownership disputes). Owner's policy protects you; lender's policy protects the bank.
Recording
When the county recorder officially registers the deed in your name. This is the moment you legally own the home — keys are released only after recording confirmation.
Proration
How property taxes, HOA dues, and other recurring costs are divided between buyer and seller based on the closing date. Shows up as credits or debits on your settlement statement.
BINSR
Buyer's Inspection Notice and Seller's Response — the Arizona form used to request repairs or credits after your inspection. Must be submitted before the inspection period expires.
Cash to Close
The total amount you need to wire or bring to closing — your down payment plus all closing costs, minus any credits. Confirmed on your Closing Disclosure.
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Questions About Your Closing?

Every transaction is different. Your For The People agent will walk you through each milestone, coordinate with your lender and escrow officer, and make sure nothing falls through the cracks.

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