One of the most common questions I hear from buyers is this:

“When do I actually pay the down payment… and who do I send it to?”

It sounds simple. But this is where many buyers start to feel nervous — and honestly, where confusion can create real stress right before closing.

Here is what actually happens.

Step 1: Offer accepted → the earnest money deposit goes to escrow

Within a few business days of acceptance, the buyer sends the earnest money deposit to the escrow company.

Not to the lender. Not to the agent. Not to the seller. Only to escrow.

That deposit is held in escrow and later becomes part of the total down payment.

Step 2: During the loan process, buyers keep their money in their own account

While the lender verifies income, assets, and credit, buyers sometimes assume they should start sending funds somewhere. Nope.

The remaining down-payment money stays right where it is — in the buyer’s own bank account.

Nothing gets sent to the lender at this stage.

Step 3: After loan approval, escrow calculates the real numbers

Once underwriting is complete and the loan is cleared to close, escrow prepares the official settlement figures.

They calculate:

• Purchase price. Loan amount.
• Deposit already paid.
• Remaining down payment.
• Closing costs.
• Prepaid expenses

This is when the final numbers come together.

Step 4: Escrow sends the most important email in the transaction

Buyers then receive the message everyone waits for: “Funds Needed to Close.”

This number includes:

• Remaining down payment
• Closing costs
• Prepaids
• Minus the deposit already in escrow

This is when buyers finally know the exact amount they need to wire.

Step 5: Buyers wire funds to escrow — not the lender

This part matters. The buyer wires the remaining funds directly to the escrow trust account.

Never to: the lender, the agent, or the seller. Only escrow.

(And yes — this is why wire-fraud warnings are taken so seriously during closing week.)

Step 6: The lender sends their money separately

On funding day, the lender wires the loan proceeds to escrow.

So escrow receives two separate sources of money:

• Buyer funds
• Lender funds

Escrow combines everything and prepares for closing.

Step 7: Recording day = closing complete

Once escrow has:

• Buyer funds
• Lender funds
• Signed documents

…the file is released for recording.

The county records the deed, the seller gets paid, and the buyer gets the keys.

That is the real timeline.

The ultra-simple version I tell my clients

Your deposit goes to escrow at the beginning. The rest of your down payment goes to escrow at the very end. The lender sends their money separately. Escrow combines everything and pays the seller.

Simple once you know it. Stressful if you don't.

Most buyer stress is not about the house. It is about not knowing what happens next.

My job is to make sure my clients understand the process so nothing feels like a surprise — especially when large amounts of money are involved.

Because buying a home is a big enough deal already. The paperwork should not be the scary part.