12 Weeks to Homeownership – Week 8
Opening Escrow

It’s week eight and what the heck is escrow?!

Remember, in week 6 your agent called and said the seller accepted your offer on your dream home and you’re now in contract.

So, last week we talked about finishing up the loan documents. The contract and earnest money check have been delivered to the title company and escrow has been opened.

Well, what does that mean? What happens from the opening of escrow to the moment you get the keys to your new home?

Escrow is defined as money, property, a deed or a bond put in the custody of a third party for delivery to a grantee only after the fulfillment of the conditions specified.

What the heck is that?!

Let me translate!

In real estate, escrow acts as a neutral third party. It holds funds from the buyer, secures a deed from the seller, and, when all of the terms of the contract have been met, transfers the deed to the buyer and releases funds to the seller.

That’s basically it.

The title company performs several tasks during the escrow process:

  1. They review the purchase contract
  2. They obtain a title commitment
  3. They review for issues – like liens, taxes paid, etc.
  4. They get the payoff for the seller’s mortgage
  5. They conduct the document signing

The main action they provide is the recording of all appropriate deeds and documents and securing and dispersing funds as instructed but the escrow instructions and the disclosures you signed.

Now, while the title company is doing all of those critical actions, the lender is ordering the home inspection, pest inspection, and appraisals to be performed. This is done, of course, in partnership with your agent.

It is critical that your agent be present at all of these appointments so that they can be of assistance.

Again, most importantly, YOU, the buyer, must continue to provide your lender with all of the required information so loan documents can be delivered on time to the title company. It’s all about perfect timing

Remember, the clock is ticking away.

It’s ticking down to that contract timeframe for closing.

So, keep on top of it, take time to relax a little bit, and I’ll see you in week 9!

In the meantime, our Folsom mortgage lender team is here to answer any questions you may have! Don’t hesitate to give us a call at (916) 985-3200.