I was asked to write an article for a newspaper on what the meaning of escrow is. I decided to share it with you as well!
Escrow is the process from offer to the actual closing. The earnest money (for another day;) is held at the buyer’s brokerage and starts the process of purchasing a home. Something of value has to be given up in order for an offer to be viable in the state of Utah. The most common first step is for a buyer to hire an inspector to perform an inspection on the property. After all comes back well the loan officer (aka my HOT husband) orders the appraisal. This will determine if the purchase price is fair and reasonable for the bank to loan money on for the buyer(s). If all comes back well on both of these (rarely happens) then the loan goes into underwriting. Once all final conditions are met and satisfied by the buyer and lender docs are then ordered and sent to title. The closing officer is also known as the escrow officer. This person is a 3rd party that is hired to provide legal documents for both the buyer and seller. Sometimes the buyer and seller have the same title companies; often times they are not though. After all docs are signed by both parties the title and deed are then recorded. Usually funding and recording takes place 24 hours after signing. The wire transfer must go through from the buyer and hit the title company so the loan can be cleared in order to record a new owner on title and the deed. Once all this is complete the new buyers are given the keys and take ownership of the home!!!!
A lot more technicalities can happen and do happen during this process and that is why hiring a professional is so VERY important!!!! Especially because as a buyer you pay NO commissions for professional representation. No brainer folks~ no brainer.
HAPPY MONDAY!!!