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Common Escrow Questions
What is Escrow?
An escrow is money
or property put into the custody of a third party until specified conditions
are met.
How Do I Open
Escrow?
As soon as you execute your purchase agreement, your real
estate agent will deposit your initial down payment into your escrow account.
Your escrow officer will then send you escrow instructions.
How Will I Know Where My Money Has
Gone?
Written evidence of your deposit is included in your copy of the
purchase agreement. Your funds will then be deposited in your separate escrow
account.
What Do I Do Next?
You will want to
speak with your credit union, bank, mortgage company or savings and loan. You
will be required to complete a loan application which will require personal and
financial information.
What Happens After I Submit the Loan
Application?
The lender will begin the qualification process including
verification of items submitted on the application and appraisal of the value
of the property.
Assuming the Loan is Approved, What's
Next?
Your escrow officer will make an appointment for you to sign your
final loan papers. At this time, the escrow officer will also tell you the
amount of money you will need to buy your new home. Your loan funds will be
sent directly to the escrow by the lender.
What Are Escrow Instructions?
Escrow
instructions define all the conditions that must occur before the transaction
can be finalized. Your escrow instructions represent your written statement to
the escrow holder protecting your interests. They authorize the escrow officer
to order title insurance which provides ownership protection for your new
home.
When Do I Sign Escrow Instructions?
Your escrow officer will send escrow instructions to you for signing along with
other forms such as: vesting instructions, statement of confidential
information, and change of ownership form. Be sure to return your signed
instructions and forms as soon as possible.
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