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 phone calls, 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 it is what you are expecting.
You will be visiting the escrow office to sign the closing documents. Signing appointments are usually scheduled 2-3 days before closing and take 1-2 hours.
Escrow and/or your agent will call you once your transaction has been officially recorded on the day of closing.