You may face these hurdles during escrow, but you can clear them with these steps!
The escrow process, which is also known as closing or settlement, is the endgame of the home-buying process. It’s when the buyer, seller, and other necessary parties get together to seal the deal.
Before the process begins, brush up on these five important steps that you simply cannot skip when you’re in escrow!
- Have a Solid Contract
The sales contract or purchase agreement is the blueprint for the escrow process. It should clearly state the terms of the deal and what must occur before escrow closes and the property changes hands. There should be no blank spaces in this agreement!
- Clear Contingencies
The contingencies are contractual conditions that must be met before escrow can close. Inspection, appraisal, and financing are common examples, although contingencies can be written for any event or issue.
- Review Title Reports
Typically there are two title reports, a preliminary report and a final report with title insurance. Review the preliminary report to verify the legal description of the property and to learn about any liens, encumbrances, or other items affecting the property’s title.
- Track Transaction Costs
Obtain a Good Faith Estimate to gauge what these costs may be. Then, compare them to the final Settlement Statement, which is the final line-by-line list of all mortgage and closing costs.
- Be Prepared on Closing Day!
Before closing day, be sure to have read and fully understood your estimated Settlement Statement. The buyer will deposit any escrow payments and sign necessary documents. The seller signs over the deed and closing statements and receives any money due.
After signing during closing, the deed and mortgage documents are delivered to the county courthouse or another government repository for recording as public records. If any of these steps feel overwhelming, don’t worry! That’s what we’re here for! If you have any escrow needs or questions, contact Eastland Escrows in Covina, California!