The Escrow Process Simplified: A Buyer’s Escrow Checklist
Whether you’ve bought a home before or this is your first time, you likely do not fully understand the escrow process. The truth is that it can be very complex but it is also true that at Neighborhood Escrow we can help you make sense of the process. Use this as your buyer’s checklist and contact us at 310-378-2456 if you have questions.
What Happens Before the Escrow Process Begins
First, let us look at what comes before escrow starts. In most cases, the first step is getting prequalified or preapproved with a lender. You’ll then provide that letter to a seller if you have not done so already. You will then look to get 20% down payment for the home, which may require liquidating some assets. Once the seller has the necessary information to trust that you will get approved for the loan and can handle the down payment, escrow is opened.
The Escrow Checklist for the Buyer
Your escrow company will make sure that you know what is expected of you but these are the general steps you will likely see on your escrow checklist.
- Get wire transfer instructions from the escrow money
- Use said wire transfer instructions to provide the escrow money with earnest money deposit
- Send a fully executed copy of the offer to purchase to your lender
- Obtain a list of documents the lender needs from you
- Send all documents the lender request so that the underwriter can approve the loan
- Review the escrow company’s escrow instructions
- Get all required documents from the escrow company such as preliminary title report, natural hazard disclosure report, HOA docs and transfer fee, termite inspection, FIRPTA affidavit, as applicable
- Review the seller’s disclosure and sign it
- Follow up with the lender to assure they have scheduled the appraisal to avoid holdups on the contingency approval
- Schedule any required inspections include general home inspection, termite inspection, roof, plumbing, chimney, or other special inspections
- Deliver repair request to seller if necessary
- Sign then deliver the contingency removal form
- Review closing costs provided by the escrow company
- Schedule a final walk-through of the home
- Get homeowners’ insurance and provide proof of such to the escrow company
- Wire down payment to the escrow company
- Sign documents at the escrow company
- Obtain keys and move into your new home
Of course, this checklist is not exhaustive. Some transactions will have fewer steps and others will have more. The key is to work with a buyer’s agent and escrow agent who will keep you up to date to prevent any unnecessary delays. You can trust that Neighborhood Escrow will always keep our clients up to date on progress.
