When do we get the keys to our home?
There is a lot to the escrow process here in our area and I often get the question, "When do we get the keys to our home?" Unlike other states where you basically exchange the money for the keys, a buyer here in Northern California doesn't get the keys till the new deed is recorded and the close of escrow is official.
Our escrow process starts once the purchase contract is accepted by all parties. Escrow is opened with the title company designated and agreed upon by the buyer and seller in the contract. In southern CA the title company and escrow company are separate entities but her in northern CA they are handled by the same person. A good escrow officer is worth their weight in gold. They do many things during the escrow process and not all are mentioned here but this will give you an idea.
Once escrow is opened, the escrow/title officer goes to work to clear the title of the property of any liens or issues that are the responsibility of the current owner starting with the preliminary title report. They order the CC&Rs if the title report shows there are any for the buyer's review. They get the pay off amounts from the current mortgages the seller has as they will pay the banks off when the money from the buyer comes in at the end of the escrow period. They collect amounts owed for property taxes as they are prorated and each party will pay their share. They collect the earnest money deposit from the buyer to hold for the transaction as part of the buyers down payment.
If the buyers will be getting a loan to fund part of their purchase, the escrow officer works with the lender to provide the fees the buyer will be responsible for, ie. HOA fees, escrow fees, title insurance fees, notary fees, property taxes. The lender provides the escrow officer with their fees such as loan origination, loan processing, credit report, appraisal. Once the loan is ready, the lender sends the loan documents to the title company where the title/escrow officer prepares them for the buyer to sign.
When it gets toward the end of the escrow process and all the information has been gathered, the escrow officer prepares an estimated net sheet, sometimes called an estimated settlement statement. for the buyer and one for the seller that balances the money coming in with what each party needs to pay. The buyer ends up with a figure that they will need to bring to close the transaction. This generally includes the rest of their down payment money plus any fees on their part. These funds need to be either in the form of a cashier's check or a wire transfer. The seller ends up with an amount they will net after paying their mortgages (if any) and fees on their part. Once escrow is closed, the escrow officer will pay out or settle the debts owed to the various entities.
The escrow officer sets up appointments for the buyer and the seller to sign their perspective paperwork. If the buyer is getting a loan, their loan docs are sent back to the bank for one final review. Once cleared the bank sends their loan funds to the title company. We call this "funding the loan".
When the funds are all at the title company, the escrow is cleared for recording at the county. The title company gets a call when the new deed is on record. The close of escrow is official and keys can be given to the buyer for their home.
I am a REALTOR® in El Dorado Hills with Lyon Real Estate. I love living in El Dorado Hills, where homes with views have become my passion. Working with both buyers and sellers, my concentration on homes for sale includes not only El Dorado Hills, but also Folsom and the Cameron Park vicinity. For more information on me or our wonderful area visit my website at www.DeeDeeRiley.com or email me at firstname.lastname@example.org. When you're ready to sell or buy a home – I would love to help! To read what my clients have to say about me and my service, visit my Client Testimonial page.
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By DeeDee Riley 2013 *All Rights Reserved*When do we get the keys to our home?
DeeDee Riley - El Dorado Hills Realtor - Lyon Real Estate - CABRE#01499004
When you're ready to sell or buy a home; I would love to help! To read what my clients have to say about me and my service, visit my Client Testimonial page.
If you like what you're seeing here please come back!!!