What happens during the escrow process?
There are a lot of moving pieces during an escrow. The good news is that when you work with a professional team like ours none of the items I’m about to mention will be of any concern to you, but thought you would like to know just in case.
To start off, escrow is the neutral 3rd party that makes sure buyers, sellers and all agents involved are doing what they should be doing based on the terms of the contract.
In order to fully open an escrow a buyer will need to wire in their earnest money deposit (EMD). Once the deposit is in, escrow will review the current signed purchase agreement and rewrite the terms and conditions into what is called “Escrow Instructions”. These will be sent out to both buyer and seller to sign. In addition to the escrow instructions buyers and sellers will received additional documentation to fill out applicable to each of them. To give an example for a buyer, escrow would request how you would like to hold title on the deed (vesting), which home owners insurance company you would like to use and tax reporting information for after the sale has been completed.
Once all the documents are in, escrow will coordinate with your lender as well as the title company to finalize the remainder of your loan documents (if applicable) and once completed have you come into the office to sign with one of the notaries. Once your loan documents are signed your lender will fund the loan and title will record the deed making the property legally yours! :)