January 15th, 2026 2:06 PM by Sam Kader NMLS# 130505
Buying or selling a home involves the transfer of significant funds and legal documents. In Washington State, this process is handled by a neutral third party, known as an escrow holder, whose role is to help ensure the transaction is completed securely and according to written instructions agreed upon by all parties.
The escrow holder acts as a secure clearinghouse for the transaction. Buyers deposit funds needed to close, buyers and sellers submit signed documents, lenders provide loan instructions, and required invoices and payoffs are coordinated for settlement. The escrow officer follows detailed, written escrow instructions that must align with the purchase agreement and lender requirements before closing can occur.
At closing, the buyer signs the final loan documents provided by the lender and wires the funds necessary to complete the purchase. The seller signs the settlement statement, confirms their legal right to sell the property, and executes the deed transferring ownership. Any existing mortgage balances or liens are paid off through escrow as part of the closing process.
When choosing a closing date, it’s important to account for banking and county recording holidays, which can affect the timing of fund transfers and document recording in Washington. For additional details, please review these escrow and title guidelines to better understand how the process works.