Has COVID Changed the Escrow Process? Yes and No
Few individuals are interested in whether or not the mortgage closing and escrow process has changed; instead, they are interested on how it has changed. The truth is that it depends on your lender, the sort of mortgage you desire, your title company, and a variety of other considerations. However, regardless of the answers to those questions, you may anticipate a few modifications. During these trying times, we at Neighborhood Escrow are likewise taking precautions to keep our clients and staff safe.
The process of home appraisal has changed
Prior to COVID, when an appraiser came to value your property, they would enter and check around. This is no longer a viable choice, and many people are opting for other solutions. This might involve a drive-by assessment in which they examine the yard and look through the windows before making a decision, a video tour in which you walk them around your property using a smartphone or other camera, or desktop research to discover comparable homes and other information.
Lenders are sometimes allowing assessments to be omitted entirely. This is usually the case when there has been a recent assessment, the house has considerable equity, or a large down payment is being paid.
Modifications to the employment and income verification process
You will very certainly be asked to produce job documents and verification. When you apply, lenders will still examine your credit, and they will almost certainly perform a last-minute re-check just before the closing. Just before the closing, they’ll probably double-check that your income and employment are the same. However, if you get unemployment or furlough pay, you should be aware that this will not count against your mortgage qualification.
However, there is some good news. Because many individuals work from home, many lenders recognize that getting access to paper files might be problematic, and they frequently accept phone conversations or video chats as proof of employment.
Escrow process modifications
Notary procedures, how you sign papers, and when you visit your escrow company’s office may all change. If you deal with Neighborhood Escrow, we will inform you of these changes in advance so you can plan accordingly. You should expect that every building you visit for any reason will need you to wear a mask.
If you have any questions regarding how Neighborhood Escrow is ensuring the safety of our workers and clients, please call us at 310-378-2456 as soon as possible.
