Escrow Process and Timetable
Many home buyers are confused by the seemingly complicated and drawn-out process of buying a home. A particular area of confusion seems to revolve around the escrow process, which is why most homebuyers are more comfortable working with a REALTOR® to ensure that everything goes smoothly. Let`s look at the somewhat complex escrow process.
After receiving a preliminary title, escrow will mail the title to the parties. Escrow agents will then begin to clear off any mortgages, lines, judgments and so on from the title.
The escrow agent will prepare the necessary documents that are needed to close the sale, including the warranty deed, settlement statement, excise tax affidavit, and any documents that are required by the IRS.
Escrow will typically receive the loan document from your lender about four days prior to closing.
Seller and buyer will sign closing documents and the buyer will make the dispensation of closing funs. The buyer will sign a couple of days prior to closing.
The loan documents will be sent from escrow to the lender for review, and will send the deed or deed of trust to the title company. The title company will hold on to the title until the sale is closed.
The lender will review the documents and approve them. After approval by the lender, the escrow agent will grant permission for the title company to record the documents.
The escrow agent will receive the funds for the lender via a wire transfer. Escrow will then receive a recording number from the title company that indicates that the documents have been recorded. This signifies that the closing has been made.