Part 2
In Escrow
Step 7 | Offer Accepted
The offer has been accepted, and escrow is officially open! A neutral third party (escrow company) is now in charge of managing the closing process, including holding funds and documents. We will also send the contract to your lender so they can start processing the loan.
1 - My transaction coordinator will be reaching out to you soon to provide you information about our timeline and she will also be sending you documents to review and sign from time to time. If you have any questions about the paperwork please call me directly so I can answer all your questions.
2 - Your Good Faith Deposit needs to be into the title company within 3 days of acceptance. You can drop a check off to them, give a check to me, or transfer funds from your bank. The title company will send you wire instructions.
WARNING: Please remember to never send money via a wire or give any banking information without first speaking with me. We will give you the phone number to the title company so you can call and verify banking information.
Step 8 | Home Inspection and Disclosures
It is important you understand everything you can about the home you are purchasing. We will be providing you with seller disclosures to review and ask any questions you would like about the information provided.
This is also your time to order any inspections you want on the home (general, termite, roof, etc). Any inspection ordered will be at your expense regardless of if you move forward with purchasing the home or not. If you would like to do any inspection on the home, please let me know so I can coordinate with the home seller.
After all inspections are complete and the disclosures are reviewed you will decide one of 3 things. (1) Move forward and purchase the home as is (2) Ask the seller to make a repair or give a credit (3) Decide not to purchase the home at all.
Once you decide to move forward you will be asked to remove your inspection contingency.
Step 9 | Appraisal Process
When we give your lender the purchase contract, we ask them to order the appraisal ASAP to ensure they get everything they need to move forward with your loan.
The lender may require you to give a credit card number to order the appraisal. If they do, please process what they need as soon as you can to keep things moving forward smoothly. Once I get confirmation of the appraisal date, I will coordinate that appointment with the seller.
If the appraisal does come in low, there may be additional negotiations between the buyer and seller to determine how the price deficit will be handled.
Step 10 | Home Insurance
It is important that during this time you speak with your lender about home insurance companies or shop around for which company you want to insure your new home.
Depending on the home, the seller and the buyer - the homeowners insurance quote will differ. Once you secure a home and are in escrow, now is the time to pick which company you will have insure it.
If you are not sure, please discuss this with your lender as they often have people they can recommend. Please let me know once you decide who your insurance company will be so I can provide that information to the title company.
Step 11 | Contingency Removal
There are a few different times that you can change your mind and decide not to purchase the home. During the escrow process we are working towards answering all the questions you have about the home and moving you closer to living in your new home. There are sometimes additional contingencies such as the sale of the buyers property, but the 4 main contingencies are:
Inspection Contingency Removal
Appraisal Contingency Removal
Loan Contingency Removal
Full Contingency Removal
Once all contingencies are removed - you are moving forward to purchase the home. We will keep you informed with each of these steps
Step 12 | Final Walk Through
Within 5 days of the close of escrow you will be able to walk through the home one more time before you purchase it. This is a good time to make sure the home is in the same condition it was in when you wrote your offer.
Also, if the seller was responsible to repair any items, this is the time to make sure those repairs were completed.
Step 13 | Signing Closing Documents
The escrow officer will arrange for the signing of the final documents, including all your loan documents. You will have options to go into the title office to sign, or having a notary come to a location of your choosing. If you are planning to sign papers in a different state, please let me know so I can make sure the title company allows time for the papers to be distributed properly and avoid delays.
If you are brining in any down payment or closing cost money, please make sure the title company gets those funds several days before the closing date. This will avoid delays in processing the money.
Don’t forget you will need your ID for the notary.Within 5 days of the close of escrow you will be able to walk through the home one more time before you purchase it. This is a good time to make sure the home is in the same condition it was in when you wrote your offer.
Also, if the seller was responsible to repair any items, this is the time to make sure those repairs were completed.
Step 14 | Funding & Recording
Once you have all your money into the title company, you sign your documents and the seller signs the deed and transfer papers it is now time for the lender to fund your loan. The title company will process the funds and record the deed to transfer the homes title from the seller to the buyer.
Funding and recording CAN happen the same day and sometimes it takes 24 or 48 hours. This will depend on what time of day the title company receives the funds from the bank. We will monitor this situation and update you as we have more information