The Escrow Process | Buyer's Perspective
- The Swan Team
- Aug 17, 2018
- 3 min read
The Orange County real estate market may be changing, BUT...
Home buyers must understand and meet expectations,
in order to successfully navigate a real estate transaction.
Buying a Home in Orange County
We want you to succeed! The Orange County real estate may be shifting to a more balanced market, but there are still expectations that a home buyer must understand and meet to successfully navigate a real estate transaction. Contrary to popular belief, home buyers can get what they want if they negotiate the escrow process from a buyer's perspective.
The bottom line is that preparation is key. In fact, preparation is the difference between closing escrow on your dream home under contract and someone else taking it off the market. Let's take a look at how we can help you successfully navigate your home buying experience.
Escrow Process from a Buyer's Perspective
Each day, each step in the escrow process brings you one step closer to getting the keys to your dream home. Even though it may feel like a "hurry up and wait" day-to-day grind, but the payoff is worth it. If you are prepared as a home buyer, understanding and meeting expectations in the escrow process makes it a win-win-win for everyone.
Preparing to fulfill each expectation on this timeline sets you up for success as a home buyer. And, there is no better way to succeed in navigating the escrow process from a buyer's perspective than by working with a trusted real estate professional.
{Example given with a 30-day escrow and Residential Purchase Agreement (RPA) with default requirements}
Day 0 – Offer Acceptance Date
Day 1 – Day after offer is accepted
Day 5 – Buyer’s Earnest Money Deposit (EMD) is due
Days 1-14 – Buyer conducts any and all inspections of the property at buyer’s expense – determining request for repairs to ask of the seller
Day 17 – Buyer to remove discovery contingencies
Day 1-20 – Buyer provides lender with any and all requested info to get underwriting approval for the loan
Day 21 – Buyer to remove loan contingency and any remaining contingencies {Property changes from ‘Active Under Contract’ to ‘Pending’ status in Multiple Listing Service (MLS)}
Day 26 – Buyer’s signs Closing Disclosure (CD); after signing CD, buyer and bank have to wait 72 hours to then sign loan docs
Day 29 or 30 – Buyer signs loan docs; buyer wires remaining down payment amount {Depending on the county in which you are purchasing property, a loan can fund and title can record “special.” Orange County is a county that allows both of these actions to happen on the same day.}
Day 30 – Loan funds, title records, and escrow closes
Unfortunately, escrow doesn’t always close on time. That is why it is best if you as a home buyer plan on move into property two to three days after closing escrow. During the escrow process, we also recommend that home buyers be in touch with their lender, confirming that the CD will be delivered on-time and loan docs will be ready for you to close on time.
The Takeaway
The best advice for a home buyer: understand the expectations of the escrow process and prepare to successfully meet them. You are not in this alone! Instead, you should rely on the professional analysis and advice of a seasoned REALTOR® to help you navigate the process. That's where we at The Swan Team come in!
If you need help preparing to buy or sell in 2018 – Contact Us Now!
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The Swan Team | OC Real Estate
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