Timeline of a typical 30 Day Escrow
- Offer is accepted by the seller
- Signed offer is delivered to escrow company and lender
- Buyer’s Deposit is wired to the escrow company. It should be wired within 3 days from acceptance.
- Escrow holder writes escrow instructions which restates the price and terms of our offer.
- Seller and the listing agent prepares sellers disclosures and orders state mandated reports.
- Escrow Company sends the opening package to both buyer and seller for review and signatures.
- Prepare and coordinate inspections. It is strongly recommended that the buyer obtain a general inspection of the home as soon as possible after acceptance of the offer.
- Receive and review state mandated Real Estate Transfer Disclosure Statement and Seller Property Questionnaire.
- These include any known defects in the home’s operating systems, environmental hazards, issues in the surrounding neighborhood and any other items that may be of material interest to a prospective purchaser.
- These disclosures should never take the place of the buyer’s home inspections.
- Sign off the removal of inspection contingency, indicating that the buyer has completed the due diligence. (Buyer’s investigation)
- At this time, we also may have the option of requesting that the seller correct or credit the buyer for any major health and safety deficiencies found, though seller is not obligated to do either.
- After confirming with the lender that there are no unforeseen circumstances that could affect your loan, and that the home appraised at the price in purchase offer. The buyer removes loan/appraisal contingencies. This is the last contingency on the escrow process. Buyer may lose the EMD (earnest money deposit) if buyer cancels out after removing appraisal loan contingencies.
- This is the time when the lender is finalizing the particulars of the loan and working closing the escrow company to coordinate paperwork and funding requirements.
- At this time, the buyer will need to provide evidence of homeowners insurance to the escrow company and prepare to wire the balance of the down payment plus closing costs.
- Closing costs average about 2% of the purchase price of the home, and include the fee to be paid to the lender, escrow and the title company, documentary and city taxes.
- Perform the final walk through of the home to ensure it is in the same condition as when it was first inspected and that any repairs requested have been completed as agreed.
- The escrow company will make an appointment with the buyer to sign the loan documents, and ask the buyer to deliver the balance of the down payment and closing costs.
- The escrow company receives your final funds as well as the funds from the lender, and works with the title company to record the home in the buyer’s name.
- The sale is confirmed, escrow is closed and the new homeowner receives the keys!