NOW THAT YOU
HAVE A SIGNED PURCHASE AGREEMENT, WHAT'S NEXT?
Between the time the contract is signed
and the actual settlement of closings reached on the house, the
buyers and sellers go through various steps, Generally they
include:
-
Buyer
meeting with the lender to apply for financing.
-
Inspection
of home being purchased
-
Appraisal
on the house for the lender to make sure the value
of the house is in accordance with the amount of
the loan
-
Buyer's
financing approved
-
Buyers
and sellers, through the sales associate,
establish the date for closing
-
Actual
closing is performed
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ESCROW
Once the buyer and seller agree upon the terms of the sale,
through the deposit receipt and any counter offers, escrow is
opened. Escrow is a neutral third party to oversee the
transaction from beginning to end. They assure no funds will
change hands until all the instructions have been followed. They
will work with a lender, buyer, seller and any other involved
parties.
Once escrow is opened, unless otherwise instructed, the buyer's
good faith deposit will be turned over to the escrow company.
Escrow, in turn, will deposit the check into their trust account
or according to the deposit receipt instructions. Again, the
escrow company is a neutral third party who follows instructions
of the principles, or their agents. Both parties must agree to
any changes prior to escrow being able to implement the request.
The deposit receipt will be used to make up escrow instructions.
These "instructions" are to be signed by all
principles to the transaction. Within the escrow instructions
are the contingencies that must be met to complete the sale.
There are many possible contingencies to every escrow. Common
contingencies are the buyer obtaining a home inspection, the
buyer's right to approve any possible neighborhood restrictions
(CC&R's), the buyer's approval of the title report, and of
course, the buyer qualifying for and obtaining financing.
When all conditions are met, the lender will fund the day prior
to recording. When all conditions of the instructions have been
met, the escrow holder "closes the escrow" by
recording the documents.
THE LENDER,
TITLE, AND ESCROW COMPANIES ARE ALL AVAILABLE TO ANSWER ANY OF
YOUR QUESTIONS.
DON'T HESITATE TO CALL THEM!
THE
CLOSING DATE ON YOUR ESCROW INSTRUCTIONS IS A TARGET DATE ONLY.
Please do not make any final arrangements based upon this date
until closer to the actual date, and loan approval.
Most
Commonly Asked Questions by Buyers
What
Price Home Can You Afford?
Six
Ways to Come Up With Your Down Payment
Some
Buyer's Options When Purchasing a Home
Escrow
Plain and Simple
The
Loan Process
What
is Title Insurance?
What
is Needed When Applying for a Mortgage?
The
Purchase Agreement
Now
that you've signed a purchase agreement, what's next?
Buyer's
List After the Contract is Accepted
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