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Tips for your Escrow
!
You have made the decision to buy or
sell your home and let's face it, the process is often confusing
and a little overwhelming. Often, you find yourself giving blind
trust to your broker, escrow officer, lender, and all the other
providers of services throughout the transaction.
Once a buyer and a seller gets together,
it's time to open escrow: a one to three month process that will
officially transfer ownership of the property. This escrow process
involves several key entities, and can be very stressful to the
uninitiated. However, the one thing for both buyer and seller to
remember is that all of the parties involved are interested in the
same objective: to close escrow. Nothing happens, and no one gets
paid until your escrow is closed.
The premise behind a real estate transaction
is simple: The seller is selling, and the buyer is buying! You may
have been told that you don't NEED a broker, you don't NEED an escrow,
you don't NEED a title policy. However, unless you are a learned
expert in these matters, a consumer shouldn't even think about entering
into escrow without the professional help from at least some, if
not all of these providers.
What can you do to make sure things
run smoothly! Here are ten tips that every Buyer and Seller should
know in preparing for a trouble-free escrow process:
- Select a licensed Real Estate Broker
to represent you.
- Choose an independent escrow provider
- You have a choice. Remember only independent escrow providers,
licensed by the California Department of Corporations, are 100%
neutral third parties. Their only concern is to monitor the real
estate transaction and safeguard trust account funds. Independent
Escrow providers are specialists whose sole purpose is providing
escrow. ESCROW IS THEIR ONLY BUSINESS!
- Sellers: Eliminate surprises - If
you have judgments against your property and don't say anything
to anyone, you should know that a search of public records is
automatic, and will reveal any liens. If you don't let your broker
or escrow officer know about potential problems in advance, your
escrow will most definitely be delayed.
- Buyer: Eliminate surprises - If
you have questionable credit, tell your broker or mortgage lender.
They know the steps you need to take to clean up your credit.
Every lender will require a credit report. Today, many borrowers
go through a pre-qualification process before looking for a home.
If you are pre-qualified, you know how much of a loan you can
obtain and therefore, how much you can spend on your new home.
- Be responsive - The escrow officer
may periodically contact you requesting pertinent information.
There is always a good reason for the request. Just ask the escrow
officer if they need more details; then get them the information
they need as soon as you can. Remember nothing happens until the
escrow is closed. Dent think, "If I don't respond, maybe
they'll forget about it."
- Be prompt - You will be required
to meet with an escrow officer when it is time to sign the loan
documents. If you are not on time, the officer will take the next
appointment, and you may be the one waiting.
- Insurance - Make sure you have addressed
your insurance needs. Select an insurance agent, and inform your
agent to determine your insurance needs. You must have fire insurance.
You may also want a homeowners policy. (Most lenders require title
insurance as well.) Your lender will require the name and address
of your insurance agent. Be sure to have this information well
in advance of the close of escrow.
- Walk-throughs - Make sure you have
completed all walk-throughs, inspections and other contingencies
such as termite inspections and any required city permits. Many
things can delay the close. Be informed and prepared.
- Documents - To expedite the escrow
closing, bring the following items with you to your appointment:
Buyers & Sellers - Drivers license or passport (photo ID)
Buyers Only The name and address of your homeowners insurance
agent. Sellers Only- If your house is a condominium, make sure
you have a copy of the homeowners association information.
- Many people are involved in most
real estate transactions. It takes cooperation and communication
between all of these entities to ensure a smooth escrow closing.
A positive outlook and a quick response to anything asked of you
will encourage this cooperation. Many things can hold up an escrow
- make sure you're not one of them.
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