These are the most FAQs our Buyers & Sellers ask. If anything is unclear, please ask! You are not alone.We want to make your journey easy, so you can focus on the destination. Our desire is to help you StockUp on Life.
Assuming the loan is approved, what is next?
When your loan is approved and the loan documents are sent to the Escrow Officer or Assistant handling your transaction, “escrow instructions” will be prepared.
What are “escrow instructions”?
Escrow instructions define all the conditions that must occur before the transaction can be finalized. Your escrow instructions represent your written statement to the escrow holder (title company) protecting your interests. Your escrow instructions specify, in a debit and credit format, the disposition of your purchase funds and title protection for your home.
What’s the next step after I’ve completed my sign off?
After you have signed all the instructions and documents, the Escrow Officer will return them to the lender for final review. this review usually occurs within a few days and upon completion, the lender is ready to fund the loan and advises the Escrow Officer.
What is an escrow closing?
It is the culmination of the transaction. It signifies legal transfer of title from the home builder or seller to you.
When will I get my deed showing proof of ownership?
The grant deed is recorded by the County Recorder’s Office on the day escrow closes. Congratulations! You are a homeowner! The deed will be mailed to you directly within 3-6 weeks by the County Recorder’s Office.
When do I have to provide new homeowner’s or fire insurance?
It is a good idea to call your current insurance agent or start shopping for homeowner’s/fire insurance as soon as escrow opens. It is important to show the age of the home, type of construction, type of roof, square footage, and other property details. Please, contact your escrow officer with the name, address and telephone number of your insurance agent as soon as you have made your decision.
What is an escrow?
An escrow is a depository for all monies, instructions and documents neccessary for the purchase of your home. An escrow company is a neutral third party that holds legal documents and funds and distributes them according to the buyer and seller instructiosn found in your contract.
Do I continue to pay my monthly mortgage payment?
Yes. Your mortgage payment must be kept current throughout the course of the escrow transaction.
What are disclosures and contingencies?
During the process of selling your property, you will be asked to fill out a property disclosure form which is now required by law. In this digital document, you will inform the Buyer of any significant facts you have about the conditions of the property.
There will be various contingency dates in your real estate sales contract, such as the: Preliminary Title Report, Termite Inspection, Home Inspection, Buyer’s Loan Approval and Appraisal contingency. We will stay closely in touch to make sure all are completed in an accurate and timeline manner.
What are closing costs?
Closing costs pay for services like real estate commissions, appraisal fees, loan fees, escrow charge, transaction charges, adavance payments like property taxes and homeowners insurance, title insurance, etc.
How do I know escrow has “closed”?
An escrow closing is the culmination of the transaction. It signifies legal transfer of title from the Seller to the Buyer. Generally, the Grant Deed and Deed of Trust are recorded within one working day of the escrow holder’s receipt of loan funds. This completes the transaction and signifies the “close of the escrow.” Once all the conditions of the escrow have been satisfied, the Escrow Officer informs you or your Agent of the date escrow will close and takes care of the technical and financial details.
Is it a law in California law that I must purchase title insurance when I buy or refinance a home?
No. However, virtually all lenders wrequire title insurance for the face amount of their deed of trust, whether purchase or refinance. Prudent owners also value the protection affordedby the payment of the one-time title insurance premium.