As a home seller, your role during the escrow or closing process is comparatively small to that of the homebuyer. Here’s a quick overview: First of all the buyer will deposit a down payment into Escrow, and you will deposit your home deed. Assuming the homebuyer is taking out a mortgage, you wait for the Lender to deposit the funds required into the Escrow before you close.
For a more in-depth definition of escrow and exactly what goes down, take a look at our Ultimate Guide to Understanding the Escrow Process.
While most responsibilities lie with the buyer to provide various forms of paperwork like their home loan, home and title insurance, and a deposit, there are some things you need to know as a seller during this time.
So what do you need to get done during escrow? Here are some quick questions to ask yourself to make sure you’re on track when it comes time to close your home sale.
What do I need to do before my appointment to sign the deed?
All parties signing the documents must bring proper identification. Please bring either your valid driver’s license, state identification card, or current passport with you to the escrow company.
This is needed to verify your identity by a notary public. It is a routine, but necessary step for your protection. Your Lender also needs this information to prepare loan documents. Remember, there will be a document preparation fee for the Deed.
When and where do I sign escrow instructions?
Generally your escrow instructions are mailed to you. Once you receive the information in the mail you will know when and where you will need to sign all the necessary paperwork.
Do I continue to pay my monthly mortgage payment?
Yes, during escrow you must continue to pay your monthly mortgage payment. Your mortgage payment(s) must be kept current throughout the course of the escrow transaction. If the payments are not kept current, the Lender(s) will assess and collect late charge(s).
When and where do I get my final proceeds check?
The proceeds check is disbursed upon close of escrow. This is when the escrow officer is able to verify with the County Records Office that the documents have recorded and legal transfer has occurred. The proceeds check can then be delivered to your Real Estate Agent, picked up from your Escrow Officer, mailed to you or wired directly to your account.
The easiest way to stay on top of your responsibilities during the escrow process is by working with a real estate agent. It’s your agent’s job to prepare and inform during the entire sale of your home – most importantly during closing. You can find a First Team agent online near you to work with or reach out and we’ll match you with a top agent in your area.