Buying a house is far from an easy process. There are processes and steps that you must take. One of these steps is the Escrow process or the closing of the deal. Here are the steps to Escrow, to help you understand the Escrow process and its relevance in the real estate market.
When starting the Escrow process there are many steps before the deal is finally closed and you get the keys to your house.
- Step 1: Get into an Escrow contract and open an Escrow account. There are agents that serve as a neutral third party as you set up the deal and the monetary transactions.
- Step 2: Wait for the appraisal from the bank which the buyer pays for in most cases.
- Step 3: Organize the financing of the property.
- Step 4: Check and approve the disclosures the seller gives you.
- Step 5: Make sure you get all the necessary inspections (pest inspections, environmental inspections, flood reports, etc).
- Step 6: Get a hazard insurance policy, which is homeowners insurance and other insurances like flood or earthquake insurance if your area is prone to certain natural disasters.
- Step 7: Acquire the Title Report and the Title Insurance and make sure they are active and in place to protect you.
- Step 8: Do a final revision to ensure that all of the steps of the Escrow process have been followed.
- Step 9: Do a thorough analysis of the HUD 1 form
- Step 10: Close the Escrow
Most of these steps are overseen and guided by an Escrow agent, but it is always a good idea to have a general idea of the steps to securing your investment.
Contact Brighton Escrow in Hermosa Beach for all your California escrow needs. Serving the South Bay since 1971, let them serve you by answering any questions you may have about the Escrow process and the various steps it contains.