Escrow is not fun for anyone involved – buyers nor sellers. It can be a stressful time of waiting and feeling unsure about how things will go moving forward.
With that said, escrow is a vital part of the home buying process. It protects everyone involved in the transaction and prevents any long term negative impacts of a deal gone wrong.
Ideally, escrow will be as expedient as possible. If the process drags on, other issues have room to pop up. The interest rate could rise, stricter lending regulations might go into effect, employment status could change, or even damage to the home could occur.
Getting in and out of escrow quickly is possible. Follow these five steps to keep your escrow on schedule and prevent delays in closing.
Secure Finances First
Do not fall into the trap of wildly making offers without preapproval from your lender. Entering escrow without your financial backing in order is a recipe for a broken deal. Take the time to get approval and know how much you can actually offer on a home. It will save a lot of heartache in the long run.
Have Inspections Scheduled
Escrow is often held up by missing inspection reports. Have your ducks in a row and reliable inspectors for termite, general, and roof inspections. Any hold up in the reports will result in a delay during escrow.
Obey the Letter of the Law
You will get directions from multiple entities regarding things you need to do during escrow. Follow the instructions exactly as they are written. Get requested documents to the requestor immediately and check in with your escrow officer regularly to see if anything else is needed.
The day of closing is not the time to come up with questions you have for your real estate agent or any other party involved. Think ahead about any concerns you may have and try to get answers before closing.
Experience is Invaluable
It is highly recommended that you shop around for your escrow company. Do not stop at simply deciding which one is more economical. Seek out a company that has a great reputation for their service and ability to get closing done fast. It may be worth paying a little extra to get the best service.