The escrow process can often times feel overwhelming to both first time buyers and those who have bought and sold real estate previously. Given the various stages of escrow, steps involved, and the terminology used, this extremely important process can cause even the most astute individual to feel a bit uneasy.
Obviously having a knowledgeable escrow officer on your team can make the process smooth, but we believe that educating yourself can also be helpful in better understanding what to plan for and expect.
The First Step: Opening Escrow
Opening escrow is the very first phase of the process. This period involves the collection of general information, including details about the parties involved in the transaction, stipulations that are relevant to the escrow and home price information. It is the escrow officer’s responsibility to ensure that all of this information has been collected. Once this is solidified, the escrow officer prepares instructions outlining the escrow moving forward. These directions are crucial to ensuring the escrow successfully closes.
The Second Step: Processing Escrow
Processing the escrow typically involves additional collection of information. The information collected in this phase differs slightly, as it involves details that are more granular and specific to moving the transaction into closing. Obtaining a preliminary Title Report, configuring the funds needed to proceed, and obtaining signatures are all items that are typically executed during this phase.
The Final Step: Closing Escrow
Closing escrow is the step that most homebuyers and sellers eagerly await. A crucial component of this step resides in completed all of the “to-dos” within a set timeframe. Your real estate agent and escrow officer should work closely together to ensure that these deadlines are met. Working with the Title Company, preparing statements, and paying off loans are things that normally take place during this stage. The escrow will successful close and the property will be transferred once all of the outlined instructions have been executed.
For more information about the escrow process, please feel free to contact us. We’d be more than happy to clarify any questions or concerns you might have!