Get ready to take on the escrow process by preparing to do these tasks!
Escrow is the final step during home buying. Once you finish escrow – also known as closing – you step across the finish line and finally get the keys to your new house! After everything you’ve gone through to get to this point, all you want is for closing to go smoothly. And it can! Here’s how to prepare for it.
All principals to the escrow sign instructions which fully set forth the understanding of the parties to the transaction. Usually accompanied by an initial deposit. For a home purchase, the mutual instructions of the principals set forth:
- the purchase price and terms
• agreement as to mortgages
• how buyer’s title is to vest
• matters of record subject to which buyer is to acquire title
• inspection reports to be delivered into escrow
• proration adjustments
• date of buyer’s possession of the property
• documents to be signed by the parties, delivered into escrow, and recorded
• disbursements to be made, costs and charges and who pays for them
• date of closing
During escrow you will:
- Put a good contract in place. Your sales contract (you might also hear it called a purchase agreement) is going to lay out the guidelines for finalizing your home purchase. It’s important, then, that it contains all of the proper information. Make sure your contract spells out what personal property the seller has agreed to leave behind, who’s paying for what final costs, and when you’ll be able to take over the house.
- Meet the contingencies. Your sales contract will likely include contingencies or things that need to happen before you can finalize the sale. Common contingencies include finalizing financing or completing a home inspection and appraisal. Get right to work on clearing your contingencies from your contract so the sale can move forward.
- Compare your Loan Estimate (LE) to your Closing Disclosure (CD). When you originally applied for your mortgage, your lender gave you a Loan Estimate. This document forecasts the expenses that would come with home buying. Now that you’re at the end of the process, you’re going to get a Closing Disclosure which is essentially a Settlement Statement, which will outline the actual costs of buying your home. Compare them and, if you find any major discrepancies, bring them up with your lender.
Money matters. So that you aren’t handling transactions on your own, scope out the right escrow company. For all of your escrow needs and services, contact Eastland Escrows in Covina, California!