Three Steps of the Escrow Process Simplified

Three Steps of the Escrow Process Simplified

ate-3escrowtipsWhether you are a first time homebuyer or in the process of selling your second home, the escrow process can come across as unfamiliar territory to both homebuyers and sellers. The knowledge and expertise that is required of an experienced escrow officer often takes years to develop and refine, and although your escrow company will take care of each step of the process, we believe it is never a bad idea to educate yourself. So to help, we’ve created a simplified version of the “Three Steps of the Escrow Process.”

Step One: Opening Escrow

This phase entails obtaining basic information crucial to your escrow, which may include names of parties involved, financing information, conditions placed on escrow and sale price of home. Once the escrow officer has this required information, he or she prepares instructions that pertain to the escrow moving forward. These directions entail what must occur for the escrow to successfully close.

Step Two: Processing Escrow

This step also entails a great deal of “information gathering,” ultimately in preparation for closing. Signatures of parties involved, preparation of the Deed, opening the Title order, calculating required funds, and obtaining a preliminary Title Report are all occurrences that take place during this time.

Step Three: Closing Escrow

This step involves working with the Title company, following the instructions initially laid forth as they pertain to lenders involved, preparing statements and checks to parties involved, and paying off old loans. In addition to executing all of these items, the pivotal aspect involves getting them done accurately and in the timeframe set forth by the real estate contract. Once all of these items are complete and the instructions have been fulfilled, the escrow closes and the property and money are transferred.

If you have additional questions about the escrow process, please contact us. We’d be happy to speak with you in further detail.