Once your offer is accepted by the Seller, you’re ready to enter into the Escrow Process. Escrow is a neutral third party that helps to organize the requirements and money of all parties until all parties are satisfied that guidelines have been met.
Your Good Faith Deposit will by deposited into the Escrow Company’s trust account within 3 days of having your offer accepted.
The Contingency Period
Your Real Estate Agent should be able to explain the Contingency Period on the offer that gets accepted. This is basically the amount of time you have to get your final Loan Approval (usually pending property information).
The standard Contingency Period is 17 Days and must be physically signed off by you, the buyer before removed. If you do not sign off on the Contingency Period, it will stay enforced until close of escrow.
Under normal conditions, a Contingency Period of 10 is highly agressive, but doable. 17 Days should be no problem. If you do encounter delays or a lack of communication during this first 2 week + period, there may be something wrong.
In many cases, the Lender has over promised without actually Pre-Approving the buyer.
It is important that you are able to provide any additional information if and when it is asked for to ensure a smooth Home Buying Process.
The Buyer has a lot of paperwork to keep track of, disclosure and forms form Lender, Real Estate Agent and Escrow. It is important that
Getting a Second Opinion
It’s important that you closely follow the requests from your Lender, Real Estate Agent and Escrow make, within reason that is. It’s ok to Follow Your Gut on this. Expect that things don’t always go as planned during the Home Buying Process, the level of communication is what will trigger that something is going wrong.
Mistakes, on the Lender’s part, are usually accompanied by very slow, if any, communication with Loan Officer.
It’s ok to get a second opinion if you feel that your Home Buying Team is not communicating well or making themselves accessible through technology or mobile.
If there is one of your Home Buying Team that you clicked best with, ask their opinion. Many times, anxieties are so high that it’s easy to get surprised at things that we have control over or we don’t.
Many Moving Parts
There are many moving parts in the home buying process, let’s take a look at everything that’s going on at the same time:
- Communicating between the Home Buyer Agent and the Home Seller Agent during the process
- Communicating between the Home Buyer Agent and the Loan Officer
- Communicating between the Home Buyer and the Buyer’s Agent, Loan Officer and Escrow Company
- Inspections are scheduled and conducted.
- Results go back to Lender and Real Estate Agents and interested parties for processing into the Home Buying Process.
- Contingency Period Waived | Process winds down to final days and increases pressure for everything to go smooth.
- Lender gets final approval on both Home Buyer and Subject Property and Loan Documents are ready to be signed.
- A Traveling Notary will contact you to sign your loan documents at a place of your choosing, or you may be welcome to meet the Notary Public at either the Loan Officer or Real Estate Agent’s office.
- Signed and Notarized Loan Documents are returned to Escrow and Lender for final sign off and approval to Fund Your Loan.
- After your Loan Funds, you should know when the Title Recording takes place. This is usually same or next day.
- Recording is confirmed and CONGRATULATIONS! You’re a Home Owner!
It is not uncommon for there to be stumbles along the way. It’s how your Home Buying Team handles the situation that shows you the true level of the expertise of your Team.