What are buyers responsible for during the escrow process? We’ve been getting this question a lot lately, so we decided to dive deeper into the topic today. During the escrow process, there are nine primary tasks that homebuyers need to complete:
1. Have your earnest money deposit ready. You typically have three days to wire your earnest money deposit into escrow. Failing to do so could cause you to lose the property. Make sure you have proper wiring instructions to avoid any delays.
2. Return escrow instructions within seven to 10 days. You should receive them within the first week of escrow being open. Be sure to provide them with the exact names you want to hold title and the manner in which you want title to be held. This is important for tax and estate planning purposes.
3. Shop around for homeowners insurance. Once you’ve decided on a policy, make sure escrow is provided with a name, phone number, and address. Advise your insurance agent of your purchase so they can get you a policy before the close of escrow.
4. Review disclosures. These ensure that the property doesn’t have any defects or malfunctions. “These are the basic steps you need to take.”
5. Order a home inspection. Even though the seller will disclose everything they know about the home, there could very well be problems that they are unaware of. An inspection ensures all of the areas of the home are looked at with a fine-toothed comb.
6. Request repairs. After you get your inspection report, you can ask the seller to make repairs or give you a credit for it on your offer.
7. Provide your lender with the documentation they request in a timely manner. This is critical because the clock is always ticking once you go under contract.
8. Be available for your loan signing. A notary should be present for this.
9. Schedule a final walkthrough with your agent to ensure the home is in the right condition.
These are the basic steps you need to take, but this list doesn’t include everything you need to do throughout the process. If you have any questions or need any help through the home buying process, give us a call or send us an email. We would be glad to help.