Rachael Ossovicki | Escrow

What Happens During Escrow?

Once your offer on a house has been accepted, you’re ready to move onto the next stage in the mortgage process: escrow.

Once your offer on a house has been accepted, you’re ready to move onto the next stage in the mortgage process: escrow.

Escrow is the stage in which your earnest money check is held by a third party until you (the buyer) and the seller come into contract and close the deal. Your earnest money is like a deposit on the house – a show of good-faith intent on your offer for the house. Neither you nor the seller will have access to this money while it is in escrow. The money is protected until the sale and transfer are final, so the money cannot be used by either party.

After you’ve entered escrow, focus on these other items important to your transaction:

  1. Home inspection.

    Schedule a home inspection to look over the property for any potential problems or violations. Take notes during the inspection and consult with your seller to see if any repairs need to be made. If you’re working with a real estate agent, you should discuss whether repairs (or cost of covering them) can be worked into your purchase agreement.

  2. Finish financing.

    Order your appraisal and submit any remaining documents your lender might need. Completing your side of the mortgage application will smooth your path to closing.

  3. Document review.

    Don’t let the stack of documents, including title abstract, title insurance policy, HUD-1 costs and exclusions, headed your way overwhelm you. Be sure to review specifics on your house, property lines and its transfer to raise flags before you sign at closing.

  4. Insurance.

    If you’ve financed your purchase with a mortgage, you are probably required to get homeowner’s insurance before you can complete your purchase. Get in touch with your insurance agent to discuss your coverage options and the type of insurance you’ll need.

  5. Sign, fund and verify.

    Schedule your closing date and bring a certified check. At closing, you’ll sign all necessary documents to purchase your house and provide the down payment with a certified check (check with your local closing agent on down payment and closing costs requirements).

Once you’ve completed these five steps, you’ll be the proud owner of your new property! If you have any questions about escrow, please contact Mutual Title today!

We thought you'd also like to know...

Millennials and Homeownership

What’s the Big Idea?

Loan Officer
Homeowner
Home Buying Tips

Who Owns the Home When Two Names are on the Mortgage?

The difference between Title and Mortgage

Home Buying Tips
Buyer/Seller
Loan Officer
Title and Escrow

How to help millennials understand the benefits – and possibilities – of homeownership

Once they understand their possibilities, here are four more reasons to help millennials make the move to homeownership:

Home Buying Tips
Loan Officer
real estate agent

3 Ways Loan Officers Can Strengthen Relationships With Real Estate Agents

Here are three ways to build strong foundations and long-lasting relationships with real estate agents:

real estate agent
Loan Officer
Marketing

Spring Market Tips for Real Estate

As a seller, buyer or loan officer, here are steps you can take to get ready for this busy time of year.

Loan Officer
Home Buying Tips
real estate agent
Buyer/Seller

7 Great Referral Sources for Loan Officers

Consider these examples to embrace these important referral sources and increase referral business

Loan Officer
real estate marketing

Why Home Buyers Need Title Insurance

Did you know you still need to confirm the home can actually be yours?

title insurance
Closing Process
Escrow
Lien
Home Buying Tips
Loan Officer
real estate agent

The Five Steps of Closing: A Homebuyer’s Guide

Whether your closing is handled by an attorney, escrow or title company, there are five steps to every real estate transaction:

Closing Process
Closing Costs
Home Buying Tips
Escrow
Lien
real estate agent
Loan Officer
Buyer/Seller