Title and Escrow
What To Expect Once You Have Entered Escrow
These are the processes that are normally involved in the sale of your home after you and the buyers have agreed on the terms of the earnest money agreement.
1. A title report is ordered by the listing agent with a title company.
2. Buyers submit their loan application and order an appraisal.
3. A home inspection is ordered to evaluate the condition of the property.
4. Negotiations may occur if the buyers request repairs or renovations due to the result or issues discovered from the home inspection.
- If the property has a well, a water sample is taken by a well tester to examine the potability of the water to make sure it is safe to drink. Also, if the buyer or lender requests, there is a gallons-per-minute test is performed.
- If the property has a septic tank, the tank and system are inspected.
- If the property has a woodstove, the woodstove has to be certified.
- Seller installs current smoke detectors and carbon monoxide detectors.
5. An appraisal is done to determine the value of the property for loan purposes. If the appraised value is lower than the selling price, both parties have to agree on the new price that the appraiser establishes.
6. An appraiser may or may not find additional defaults to the property that need to be addressed and repaired in order to get the loan.
7. Once all the lender’s requirements are addressed, the loan is submitted to an underwriter that evaluates the property and the borrower to ensure that the value is there and that the buyer can repay the loan.
8. The contingencies of the contract are removed by all parties, and we move to closing.
9. Your agent will meet with you and your escrow officer at the title company, where you will sign the documents.
10. Normally the title company records the sale the next day or on the agreed upon date.
11. You are either mailed the proceeds of the sale, it is wired to your bank account, or the check can be picked up from the title company.
Check out one of our local Title and Escrow Companies
