Opening an escrow refers to when a buyer (that’s you!) and seller of a property establish terms and conditions for the transfer of ownership for that property. To ensure everything goes according to plan, your escrow company – AKA the Escrow Holder – oversees these terms and conditions. If you’re still hazy on the specifics of the escrow process and the role of your escrow company, check out our Ultimate Guide To Understanding the Escrow Process.
Once you enter escrow, there’s a lot of paperwork you’ll have to get lined up and signed for your escrow company so they can get the ball rolling. Now let’s dive into each piece of paperwork you need and when you will be signing those documents for escrow.
What escrow paperwork will I have to provide?
Statement of identity: You will be asked to complete a statement of identity as part of the necessary paperwork. Due to the fact that many people have the same name; the statement of identity is used to identify the specific person in the transaction through such information as the date of birth, social security number, etc. This information is kept confidential.
Lender information: Provide the Escrow Holder with the name, address, and phone number of your Lender as soon as possible after opening escrow.
Hazard/fire insurance: If you are purchasing a single family, detached home or a townhome, be sure to order your hazard/fire insurance once your loan has been approved. You should immediately begin looking for an agent; not all companies can write fire/hazard insurance.
Then, call your Escrow Holder with the Insurance Agent’s name and phone number so that he/she can make sure the policy complies with your Lender’s requirements. You must have your insurance in place before the Lender will fund money to the title company. If you do not have an Insurance Agent, your Real Estate Agent can help you.
Title to home: Decide how you wish to hold title to your home. The Escrow Holder will need this information in order to prepare the Grant Deed. We suggest you consult an attorney, tax consultant, or other qualified professional before you decide. Your Lender also needs this information to prepare loan documents.
When do I sign loan documents?
Generally, your escrow instructions will be mailed to you. Your Escrow Officer or Real Estate Agent will contact you to make an appointment for you to sign your final loan papers. At this time, the Escrow holder will also tell you the amount of money you will need (in addition to your loan funds) to purchase your new home. Your loan funds will be sent directly to the Title or Escrow Holder by the Lender.
Review your lender’s requirements!
Make sure you are aware of your lender’s requirements and that you have satisfied those requirements before you come to the escrow company to sign your papers. Your Loan Officer or Real Estate Agent can assist you.
There are a lot of moving parts and things to get in order for the escrow process. The best way to prepare yourself is by working with an agent you trust to stay organized and on top of all your paperwork for you. If you don’t have an agent already, you can search for one online at Firstteam.com or contact us and we’ll match you with an expert near you.
Call 888-870-1142 or
Email us at clientservices@firstteam.com
