Once you have found the home of your dreams, the next step in the home buying process is to put money into your escrow account. This money is not given directly to the seller, and instead shows the seller that you are serious. The money that is in the escrow account cannot be used by either the seller or the buyer without the consent of both parties. The deposit is then put toward your down payment once you are approved for the home. If you do not end up getting the home for a variety of reasons, you do not necessarily get the deposit back. Keep these three tips in mind to ensure that your escrow deposit is protected.
- Know the property. During the home inspection, which should be done on every home, no matter how new it is, make sure that you get to really know the property. This will help ensure that you do not run into any expensive problems later on.
- It is suggested that you make the offer contingent upon the buyer obtaining loan approval and the property appraising for the sales price. Therefore, if the property appraises for a lesser amount than the sales price, you would have the option to renegotiate with the seller as to a new sales price.
- Carefully look over the property disclosures. The seller is required by law to disclose any known problems with the property, the neighborhood, or anything else that can negatively affect the property. Make sure to carefully look over all these problems before signing off on them.
Contact Eastland Escrows in Covina, California for all of your Southern California escrow needs to ensure that everything goes as smoothly as possible.