ESCROW IS OPENED
One of the Realtors in the transaction will open Escrow with the designated company to help transact your sale. You should receive an email with your Escrow Number, which is helpful to keep track of!
GOOD FAITH DEPOSIT
You will need to provide a good faith deposit as specified in the contract to the Escrow Company. You have 3 days to submit this deposit.
You may have noticed when you signed your offer how many of the forms were called “disclosures” or “advisories”. It is important that everything is on the table when negotiating a contract this big and impactful. In the contract, unless otherwise negotiated, the seller must provide you with a stack of disclosure documents about the property in the next 7 days. These forms are the seller’s opportunity to let you know the details about the property. Additionally, the Title Report and Natural Hazard Disclosure will be ordered from Escrow.
Now that your offer has been accepted, the “clock” is ticking, and you have 17 days (or other as determined by your contract) to complete inspections on the property. Talk with your Realtor about which inspections you want to complete. Your Realtor should assist you in scheduling and completing these.
Once you have finish inspecting the property, and you know that you want to move forward with the purchase, you can release your inspection contingency. This triggers your lender to order the appraisal. The appraisal is a bank requirement used to double check on the value of their investment in the property should you default on the loan. If the Appraisal doesn’t come in at value, a negotiation period follows.
FINAL WALK THROUGH
At this point, the contract offers you one final walkthrough. This is to just look in on the property one more time and make sure that nothing material has changed while you were getting your loan.
CLOSE OF ESCROW
CONTINGENCIES – Once the Appraisal comes in at value, your lender will be finalizing your loan. At this time, you will be releasing your final contingencies and will be obligating yourself to follow through with the purchase.
SIGNING CLOSING DOCUMENTS – You will coordinate with your lender and escrow company to sign documents to obtain financing, and to finalize the sale. This is typically done 2-3 days before escrow actually closes, as the documents then go to your lender for approval.
GOING ON RECORD – The property is not officially recognized as yours until it is recorded at the county office. Your Escrow officer will keep you and your Realtor informed about when your sale is completed and “on record.