Whether you are a first time buyer just starting to browse some homes, or you’ve already found a realtor you want to work with, one thing you want to be familiar with is the escrow process. Many people know it’s part of the home buying process, but they may not know exactly what that actually means and how it plays out when buying a home. We’re here to help you answer any questions you may have so that moving forward you’re all clear on escrow.
What Does Escrow Mean?
Escrow happens between the time the seller agrees to the terms of the buyer and the buyer gets the keys, also known as closing.
In order to keep things simple between the buyer and the seller, an escrow account is held by a third party while the final arrangements are being completed on the home buying process. There are certain obligations that have to be completed until the house is considered purchased, and during that time, the house is “in escrow”.
You may have heard, “this house has been in escrow for so long” or “so happy escrow closed quickly” but aren’t sure why or what that actually means when buying a home. The escrow process can be affected by missing documents or even from state to state so the length of time in escrow can vary depending on many different factors. You will also need to open an escrow account once the seller and buyer agree to the terms of the purchase.
Once the appraisal has been completed, you will need to get an estimate from your lender. You will need to secure financing from a lender before moving forward with the contract. Although an inspection is not required, it’s always a good idea to set one up before making the final arrangements and moving into the home. If you find any issues during your inspection, you may want to negotiate with the seller when it comes to the price of the home.
You will need two things to move forward with your lender: title insurance and title reports. The title report makes sure the title is clear and the title insurance protects you and your lender from any future issues with the title.
After your final walk-through, you will get a HUD -1 Form which shows the final loan terms and closing costs. The closing process involves a lot of paperwork and you will want to make sure to discuss any concerns you have with your real estate agent. Once you complete your paperwork and submit your down payment, you will be all set to take possession of your new home.
Contact Our Team Today!
We know that there’s a lot of ups and downs that come along with buying a home especially if you are concerned about escrow closing quickly. We are here to help you in any way possible, so don’t hesitate to reach out to the team at Commonwealth Mortgage Corp in Conroe, TX today!