A Four-Perspective Journey Through the Escrow Process
The Buyer
Gets pre-approval letter from Lender and provides to Real Estate Agent.
Makes offer to purchase. Upon acceptance, opens escrow and deposits earnest money.
Schedules inspections (home, pest, etc.) and reviews results.
Requests repairs or credits after inspections, as needed.
Secures financing by applying for a mortgage and submitting documents to the lender.
Obtains homeowner's insurance and provides proof to escrow.
Reviews and signs closing disclosures and loan documents.
Provides remaining funds to close to the escrow officer.
Completes final walk-through of the property.
Takes possession of the property after closing is confirmed.
The Seller
Accepts the buyer’s offer and signs the purchase agreement.
Provides all required disclosures and reports to the buyer.
Coordinates access for inspections and appraisals.
Negotiates repairs or credits after inspections are completed.
Works with their agent and escrow officer to resolve any title issues.
Signs escrow instructions and transfer documents.
Ensures all agreed-upon repairs are completed before closing.
Escrow Officer or Real Estate Agent contacts the Seller to schedule signing appointment.
Moves out of the property by the agreed date.
Receives sale proceeds from escrow after closing.
The Escrow Officer
Receives purchase agreement from buyer agent and opens escrow.
Upon receipt of order and earnest money deposit, orders title examination.
Requests necessary information from Buyers and Sellers via opening packages.
Upon receipt of opening packages, orders demands for payoffs. Contacts buyer or Seller when additional information is required for the title commitment/preliminary report.
All demands, invoices and fees must be collected and sent to Lender at least 10 days prior to loan consummation.
Coordinates with Lender on the preparation of the Closing Disclosure.
Reviews all documents, demands and instructions and prepares settlement statements and any other required documents.
Schedules signing appointment and informs Buyer of any funds due at settlement.
Once loan is consummated, sends funding package to Lender for review.
Prepares recording instructions and submits docs for recording.
Documents are recorded and funds are disbursed. Issues final settlement statement.
The Lender
Accepts Buyers application and begins the qualification process. Provides Buyer with Loan Estimate.
Orders and reviews title commitment/ preliminary report, property appraisal, credit report, employment and funds verification.
Collects information such as the commitment/preliminary report, appraisal, credit report, employment and funds verification. Reviews and requests additional information for final loan approval.
Underwriter reviews loan package for approval.
Coordinates with Escrow Officer on the preparation of the Closing Disclosure, which is delivered to Buyer at least 3 days prior to loan consummation.
Deliver loan documents to escrow.
Coordinates with escrow officer to ensure all loan documents are executed by the buyer.
Funds the loan by wiring money to escrow for closing.
Receives the recorded deed of trust/mortgage as security for the loan.
Begins servicing the buyer’s mortgage after closing.
