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Loan Application

Usually, the buyer will have already made loan application prior to making an offer, If not, it must be made typically within five working days after mutual acceptance of the purchase and sales agreement, or as otherwise indicated on the contract. Reference the loan application check list for items the lender will need.

Lending Institution

The buyer’s choice of lending institutions will take a credit application; get job information and salary history. The loan processor orders Preliminary Title for the property and an appraisal on the property. (We will let the appraiser in the home) the appraiser inspects and submits his report to the loan company. The seller orders the pest inspection and septic tank pumping if negotiated. The loan processor gathers together appraisal, credit report, verification of purchaser’s employment and funds available for down payment and submits the completed package to underwriting. The loan officer will then notify you of loan approval, or additional requirements. Do no worry because we will be in touch with you and the lender on a weekly basis.

Escrow

What is Escrow and why is it needed?

An escrow is an arrangement in which a disinterested third party, called an escrow holder, holds documents and funds on behalf of a buyer and seller, and distributes them according to the buyer’s and seller’s instructions as stipulated in the purchase and sales agreement.

What the Seller does in the escrow process.

Escrow coordinates all of the following with the seller.

  • Deposits the executed deed to the buyer with the escrow holder.
  • Deposits evidence of any seller-required work orders, inspections etc.
  • Deposits other required document such as tax receipts, addresses of mortgage holders, insurance policies, new home warranty contracts, etc.
  • Fulfills any other conditions specified in the escrow instructions.

What the Buyer does in the escrow process.

Escrow coordinates all of the following with the buyer.

  • Deposits all funds required to pay the purchase price with the escrow holder.
  • Deposits funds sufficient for home, title insurance and other closing costs.
  • Signs any deed of trust or mortgages necessary to secure loans.
  • Approves any inspection reports, title insurance commitments, etc. called by the purchase and sales agreement.
  • Fulfills any other conditions specified in the escrow instructions.
  • Purchaser arranges for homeowner insurance on the new property.

What the Lender does in the escrow process.

  • Orders preliminary title and appraisal on the property.
  • Processes the loan through to loan approval.
  • Deposits proceeds of the loan to the purchaser.
  • Directs the escrow holder on the conditions under which the loan funds may be used.

What the Escrow holder does.

  • Opens the order for title insurance, if the lender has not already ordered.
  • Sends out a copy of the title insurance to all parties.
  • Receives funds from the buyer and/or lender.
  • Prorates insurance taxes, rents, etc.
  • Disburses funds for title insurance, recordation fees, real estate brokerage, lien clearance etc.
  • Prepares final settlement statement for each party, indicating amounts to be disbursed for service sand any further amounts, necessary to close escrow.
  • Records deed and loan documents, delvers the deed to the buyer, loan documents to the lender, and funds to the seller, closing the escrow.

What your Realtor and staff do in the escrow process.

  • Communicates with all parties on a regular weekly basis or more if necessary to assure the process is proceeding smoothly with all required document and facts available.
  • Acts to correct and eliminate any potential problems or delays that may occur along the way.
  • Accompany and assist you during the signing of the escrow and loan documents. (As necessary)
  • Be available for any questions or concerns.

Closing the Escrow

Once all the terms and conditions of the instructions of both parties have been fulfilled, and the closing conditions satisfied, the escrow is closed once the safe and accurate transfer of property and money has been accomplished.

Possession

As stipulated in the purchase and sales agreement, keys are available to the buyer upon closing. (Unless otherwise negotiated) Possession of the property by the buyer occurs as agreed to in the contract.