Sun Title can handle all of your loan closing needs, including escrow. From establishing an escrow account for your transaction to distributing funds once the closing is complete, we effectively manage this vital part of your loan closing.
What Can You Expect from Good Escrow Services?
Escrow is one of the many things you need to go through before you can officially take ownership of the home or business of your dreams. So, in order to make the process run as smoothly as possible, you need the right escrow services!
Escrow begins when you and the seller sign your sales contract. The process is meant to ensure that the lender releases the funds for the home or business at the same time that the title is switched over into your name. In order to make sure everything is done correctly, an escrow officer will act as a neutral third party. He’ll keep all of the contracts and your check for the down payment while the deal is being completed. (That way, you don’t have to worry about the seller running off with your check before you get the property deed!)
The company that handles your escrow services will be chosen by both you and the seller. And, of course, you’ll have to pay a price for these services. Count on spending about 1% to 2% of the selling price on escrow fees. If the deal falls through for some reason, you’ll likely have to pay cancellation escrow fees.
During the escrow process, several important tasks will be completed – such as the title search, the inspection, any repairs that the seller agreed to make, the buyer getting homeowners’ insurance, etc. (If you plan on buying title insurance, you’ll do it during the escrow process, as well.) Every time one of these tasks is completed, your escrow officer will send out a letter to everyone involved with the transaction, and everyone will sign off on it. Think of it like scratching things off of a “To Do” list!
Just remember – reliable escrow services are completely neutral, so your escrow officer won’t be able to give you any advice. All he’s allowed to do is give a brief explanation of the forms you’re about to sign. If you’re wondering if this is really a good deal, you’ll have to talk to your realtor or your attorney.
When does the Escrow Process End?
Escrow officially closes when the new property deed is issued in the buyer’s name and the seller gets paid. The specific length of time that escrow takes depends on your particular deal. However, a good escrow officer will do everything he can to make the process as efficient as possible. Just remember that escrow for bank-owned properties tend to take longer.
After it’s done, though, you’ll be free to enjoy your new home or business!