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Steps in
Closing
Loan Application
Usually, the buyer will have already made loan application or will within five
working days after a Purchaser and Seller have signed a purchase and sale
agreement. Reference the loan application checklist for items the lender will
need.
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 buyers and seller’s instructions.
What the Seller does in the escrow process:
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Deposits the executed deed to the buyer with the escrow holder
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Deposits evidence of any inspections or any required repair work
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Deposits other required documents such as tax receipts, addresses of mortgage
holders, insurance policies, new home warranty contracts, etc.
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What the Buyer does in the escrow process:
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Deposit funds required, in addition to any borrowed funds to pay the purchase
price with the escrow holder.
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Deposits funds sufficient for home and title insurance
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Arranges for any borrowed funds to be delivered to the escrow holder.
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Signs any deed of trust or mortgages necessary to secure loans.
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Approves any inspection reports, title insurance commitments, etc. called for by
the purchase and sale agreements.
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Fulfills any other conditions specified in the escrow instructions.
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Purchaser arranges for fire insurance on the new property.
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What the Lender does in the escrow process:
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Deposits proceeds of the loan to the purchaser.
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Directs the escrow holder on the conditions under which the loan funds may be
used.
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What the Escrow holder does.
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Opens the order for title insurance, if the lender has not already ordered.
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Obtains approvals from the buyer on title insurance report, pests and other
inspections.
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Receives funds from the buyer and or lender.
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Prorates insurance, taxes, rents, etc.
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Disburses funds for title insurance, recordation fees, real estate brokerage,
lien clearance etc.
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Prepares final statement for each party, indicating amounts to be disbursed for
services and any further amounts, necessary to close escrow.
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Records deed and loan documents, delivers the deed to the buyer, loan documents
to the lender, and funds to the seller, closing the escrow.
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What Bart Cloninger does in the escrow process.
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Communicates with all parties on a regular weekly basis or more if necessary to
assure the process is proceeding smoothly with all required documents and facts
available.
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Acts to correct and eliminate any potential problems or delays that may occur
along the way.
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Accompany and assist you during the signing of the escrow and loan documents.
(as necessary)
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Be available for any questions or concerns.
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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.
Remember…I will be with you all the way.
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WHAT EXACTLY DOES “CLOSING,” MEAN, AND WHEN DO I GET TO MOVE IN?
In Washington State, closing is considered the day that the deed is recorded
into the buyer’s names and the proceeds are paid to the seller. When you can
take legal possession of the property depends on the terms or conditions of your
contract. But let’s digress for a moment.
Different states handle closing procedures different ways. In Washington State,
buyers and sellers sign at separate times, typically two to three days prior to
closing. Closings are predominately handled by Licensed Practiced Officers or
Closing Agents working for attorney’s or title companies.
Prior to signing the escrow company will set an appointment with you to come in
and sign. They will also give you, the total amount of funds to close, that you
will need to bring to the signing in the form of a certified or cashiers check;
At this time, if you have not already informed your loan officer, you will need
to provide proof of a household insurance. This is something you will want to
take care of a few weeks prior to signing, or when your loan officer recommends
it.
As far as possession is concerned, this can get very vague and confusing, when
it really shouldn’t be. Let me explain. Legal possession can only occur when
the deed is recorded and funds disbursed.
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(509)
981-1001