Escrow & Closing

The escrow company is a neutral third party responsible for preparing documents necessary to transfer clear title to the buyer, recording the mortgage and making sure funds are transferred to the seller. The escrow process begins when your earnest money is deposited and the purchase and sale agreement is delivered to the escrow company, and ends with the closing of the transaction.

The escrow company is a neutral third party responsible for preparing documents necessary to transfer clear title to the buyer, recording the mortgage and making sure funds are transferred to the seller. The escrow process begins when your earnest money is deposited and the purchase and sale agreement is delivered to the escrow company, and ends with the closing of the transaction.Traditionally buyers choose the escrow company but it is often negotiated. Real Estate Brokers have years of experience with escrow companies and they know which ones perform well. Because of this they often have excellent recommendations.

Escrow manages the transaction behind the scenes. They gather all the information for the selling and buying parties, review title, make contact with the lender and work closely with them to make sure the lender documents are on schedule for a signing appointment that will need to happen a few days before closing.

Escrow will send you documents in the mail; remember as your Purchase and Sale agreement states, “time is of the essence!” Do not delay opening your mail and be sure to promptly return any forms or information they may need.

Escrow provides your settlement statement and makes it available a few days before closing. Your settlement statement (or “HUD1”) is a summary of the costs of your transaction. Look it over to make sure the loan costs are the same as your Good Faith Estimate you received from your lender. Make sure that all other costs appear accurate.Escrow will let you know the exact amount of money they will need from you to close the transaction. You can bring a cashier’s check or wire transfer the money.

Helpful hint: if you are relying on stocks or other assets for the money, make sure they are liquidated well in advance.

Closing

You will be visiting the escrow office to sign the closing documents (these “documents” are your loan documents”), and some mortgage brokers offer to be there with you at signing since these documents originate with them. Signing appointments are usually scheduled 2-3 days before closing and take 1-2 hours.

Helpful hint: bring your driver’s license so your signatures can be notarized.

Escrow and/or your agent will call you once your transaction has been officially recorded on the day of closing. Then you get the keys for your new home!