Simple Escrow Guide for Buyers: What to Expect

Getting Started

When you're ready to buy a home, the escrow process begins. This means that things are set in motion once you've signed the Residential Purchase Agreement and given your initial payment. You'll also receive a set of Escrow Instructions, which include important forms for things like insurance and ownership details.

Moving Forward

As things progress, the escrow team will review a Preliminary Title Report from a company that handles property titles. This report is important for you to check and approve. You'll also get information about any potential hazards related to the property. Both you and the escrow team will need to provide documents that your lender asks for. If your new home is part of a homeowners association, you'll receive documents about that too, so you can make sure everything is in order.

Dealing with Loans (Before Closing)

If you're getting a loan to buy the home, the lender will prepare loan documents and send them to escrow. The escrow team will look over these documents and may prepare some extra papers that the lender needs. You'll get an estimate of the final costs and will need to send the required funds a couple of days before closing. Then, you'll schedule a time to sign the loan papers. Once you sign, the escrow team will send everything back to your lender. The lender will check everything, and if they need more information, they'll let the escrow team know. When the lender is ready to provide the loan, the escrow team will check with everyone involved to make sure everything is set and the funds are ready.

Closing the Deal

Now comes the exciting part! The escrow team will ask the lender to send the money for your loan, and they'll also give permission to the Title Company to officially transfer the property to you. This is done by recording the Grant Deed at the County Recorder’s Office. Once that's complete, the Title Company will send the final bills to the escrow team. They'll put everything together and make sure the money goes where it needs to, including any refund you might be owed.

Time Matters!

Remember, time is important during this process. If your Agent, Escrow, or Lender needs something from you, it's a good idea to respond quickly. Everyone working together ensures a smooth and timely closing, making your journey to homeownership a success!