Find Out How The Escrow Process Works

If you are a first-time buyer or seller of property, you probably never heard about an escrow. Luckily, most of the escrow proceedings will be handled by your real estate agent and escrow officer. Basically, an escrow is used to deposit funds or a title during the process of a business transaction. This allows the funds and title to be secured until the transaction is completed as both parties get their part of the transaction at the same time.

How Does An Escrow Work

The escrow process begins with all the necessary escrow documents being prepared. Once all the documents are ready, signatures are signed between the two parties. If a title is part of the escrow, then it is reviewed to ensure there are no liens against the seller that could disrupt the closing process and the sale of the home. All demands regarding liens are received and filed with the documents as property taxes are also reviewed to determine if all applicable taxes have been paid.

At this time, financing also becomes processed. A beneficiary statement is requested and filed, ensuring that the buyer will have legal ownership of the property. All terms of the transfer and current payment status is reviewed as the new loan documents are processed, sent to a lender for approval, and the terms are approved by the buyer. The loan documents are sent out as all paperwork from the title, lien documentation, beneficiary statement, home inspections, home insurance and additional paperwork is reviewed to determine if every issue and condition has been met to proceed with the next step.

If any documents need signatures, those are obtained to complete the last part of the escrow process. Now, title documents are forwarded to the title company, funds are obtained from the buyer and all signed loan documents are returned to the lender. At this time, the buyer should give their loan payments as the these funds, purchase funds for the home and documents are sent to all involved parties at the close of the transaction.

Let Cary Amo From Sotheby’s International Realty Help With Your Escrow

The escrow and closing of the home can be a very confusing process, and you don’t want the transaction of the property to be delayed because documents weren’t signed and payment was never received. To ensure that the process is completed in a timely manner, let Agent Cary Amo from Sotheby’s International Realty help you with your escrow. With over 20 years of realtor experience, you will be living in your dream home after the closing. Contact Cary Amo at 925-818-0880 and visit his website for additional real estate information.

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