|
 Escrow
employs the use of an impartial third party to hold
documents and funds while the final details of the
sale are settled. These details include making sure
the seller legally owns the property, and making
sure the buyer has enough money to purchase the
property.
Escrow
is usually opened by the Real Estate Agent. The
buyer sets the closing date for the escrow in the
original purchase agreement, but it can be changed
as long as both the buyer and seller agree to the
change.
For
the seller, Escrow means that title searches will
be done and any mortgage will be closed. A title
search locates documents that might affect the
title of the property. This search should be read
carefully for any problems relevant to the
property.
For
the buyer, Escrow means providing proof of
sufficient funds to purchase the property. This may
include applying for a home loan. When shopping for
a loan, ask about interest rates and loan fees. A
good idea is to find out how quickly the lender can
appraise the property. Be careful in deciding which
loan is best for you.
When
applying for a loan you will need to fill out the
Uniform Residential Loan Application form. On this
application you will need to provide information
about employment, assets, liabilities, and income.
In order to speed up the loan process provide your
lender with bank statements from the past few
months, tax returns for the last two years, and
current W-2 Forms. Also, if you have had any credit
problems, provide the lender with any letters of
explanation. Your loan will be processed faster if
you provide your lender with complete
information.
In
order to lower closing costs, an Escrow company can
be chosen which has attorneys on retainer rather
than on staff. Also, an Escrow company, which is a
title company as well, can be chosen. This will
allow the seller to use one company for both the
escrow and the title search.
Thus,
in selecting the right professionals to handle your
escrow, you should choose the escrow company you
can trust. Check their history in your community,
relationship with your Realtor, and efficiency.
|
