Common Escrow Questions
What Is Escrow?
An Escrow is money or property put into the custody of a 3rd party until specified conditions are met.
How Do I Open Escrow?
As soon as you execute your purchase agreement, your real estate agent will deposit your initial down payment into your escrow account. Your escrow officer will then send you escrow instructions.
How Will I Know Where My Money Has Gone?
Written evidence of your deposit is included in your copy of the purchase agreement. Your funds will then be deposited in your separate escrow account.
What Do I Do Next?
You will want to speak with your credit union, bank, mortgage company or savings and loan. You will be required to complete a loan application which will require personal and financial information.
What Happens After I Submit The Loan Application?
The lender will begin the qualification process including verification of items submitted on the application and appraisal of the value of the property.
Assuming The Loan Is Approved, What’s Next?
Your escrow officer will make an appointment for you to sign your final loan papers. At this time, the escrow officer will also tell you the amount of money you will need to buy your new home. Your loan funds will be sent directly to the escrow by the lender.
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 protecting your interests. They authorize the escrow officer to order title insurance which provides ownership protection for your new home.
When Do I Sign Escrow Instructions?
Your escrow officer will send escrow instructions to you for signing along with other forms such as: vesting instructions, statement of confidential information, and change of ownership form. Be sure to return your signed instructions and forms as soon as possible.