What Are The Steps Involved?
When we start an escrow with a home buyer, we provide to our home buyers a detailed timeline of the entire process with important dates and references to the Purchase Agreement. This timeline will include all of the dates and deadlines for doing inspections of the home, reviewing the seller’s disclosures, getting your financing together, discussing possible repairs, etc. This way, you’ll know precisely what to expect during each phase of the escrow period. The main steps involve (i) the physical inspection(s), (ii) the loan approval and appraisal process, (iii) reviewing disclosures, and (iv) completing your due diligence. There are a lot of moving parts to buying a home, and our written outline of the process goes a long way to helping keep expectations in line with reality.
Escrow, Appraisals, Disclosures, Inspections
Once your offer is accepted, escrow is opened which is usually a 30-45 day process to complete the purchase process, and this is when things become real. Escrow is a third party that handles the paperwork and transfer of funds and they will assist the buyer and seller and REALTORS throughout the process. Escrow is also the time when you get a chance to “look under the hood and kick the tires” of the home and check out it’s physical condition, review disclosures from the seller, and really start to figure out whether this is the home for you. If you are getting a mortgage loan, your lender will order the appraisal which is a report on the home’s value that the lender uses as part of your loan application process. We coordinate all of this activity with you and walk you through each step along the way.
As a home buyer in California, you’ll have contingencies in the purchase agreement that protect you during the early stages of the escrow. If you are not happy with the home, you can cancel the transaction; if you are happy, you’ll remove your contingencies and move toward the closing.