Buyers and sellers can both find the escrow process a bit mysterious and sometimes tedious. Of course, escrow serves a very important role: the escrow company is responsible for handling all paperwork, instructions, money, and details of the purchase or refinance to protect all parties involved.
The longer the escrow process takes, the greater the chance for problems. For example, interest rates can go up, lending practices may change, the buyer may lose his or her job, or a natural disaster can occur.
These tips will help you streamline your escrow transaction to close on time and without unpleasant surprises.
All too often, buyers become excited about a home and make an offer without full approval from a lender. Don’t make this mistake as you may have trouble securing financing later. Jump through all of these financial hoops before you make an offer and open escrow to avoid delays or worse — the deal falling apart completely.
After a purchase agreement is signed, buyers and sellers should stay local and remain in touch with the real estate agent, escrow officer, and anyone else who is important to the transaction. You may need to be available at a moment’s notice to provide important documentation or clear hurdles like a surprise lien on the home.
Make sure you’re ready to sign paperwork and arrange for any home inspections such as the general inspection, termite inspection, and roof inspection. The escrow officer will need these inspection reports to speed up the closing process and make sure all contingencies have been met. If the agent or inspector cannot reach you for an appointment, closing may be delayed.
You may receive instructions from the real estate agent, lender, or escrow officer at any time during escrow. Failing to supply necessary documents to the lender can delay processing of your mortgage agreement and escrow. Your escrow officer or agent may also have instructions or questions.
Buyers have a few days to review final loan documents, but closing day can be demanding. Come prepared with any questions you have, a calculator, and a representative who will help you. The real estate agent is usually responsible for helping you make sure the deal closes properly.
The escrow company the buyer and seller agree upon matters when it comes to closing on time. Consider not only fees but recommendations, the office location, and the company’s staff size. While a large staff doesn’t necessarily mean the company is better, sufficient staff can make the process more efficient. Choose an escrow agent who has extensive experience with local market conditions so they can spot potential problems ahead of time.
Beaches Title Services helps buyers and sellers work toward a smooth and efficient closing. With more than 30 years of experience, our escrow officers have the experience and knowledge necessary to close deals on time and help you avoid pitfalls that can derail escrow. Contact Beaches Title today to learn more about our comprehensive title and escrow services.
