The Role of Escrow in Real Estate: Part 2

What happens next after finalizing the purchase-and-sale contract? In this second and final part of our interview with Laurie Cole from WFG National Title and Escrow, the escrow process, we will explore the last few steps in completing your home purchase. If you missed the first part of this interview, you can watch it here.

The escrow company is usually working on a tight schedule. Lenders play an important role during this process— once the lender delivers the loan documents, the escrow team can verify they are complete and amounts are accurate and balanced with the lender. This may take some time as there are a lot of moving parts to it, and each transaction is unique and needs to be handled carefully. Now, the signing appointments can be scheduled, and the buyer will be notified of the amount of funds they need to bring for their down payment and closing costs. As with the case of Earnest money, these will need to be collected funds in the form of a Wire or Cashier’s Check. Please remember to verify wiring instructions with your Escrow Officer in person or by phone. Your real estate agent will never email you wiring instructions, and your lender or escrow team will always require the use of a secure email portal. Call your trusted agent, loan officer, or escrow team if you have any questions!!

It is important to be flexible with your schedule during this time, as the signing may need to happen on short notice; it could be one or two days before the closing date. After parties have signed, the documents go back to the lender for review and approval.

Once the Lender approves the signed documents, they will wire funds to the escrow company. When the funds are received from the lender (or from the buyer if it’s a cash transaction), they will then release the Deed to the County to be recorded. This officially transfers ownership of the property from the seller to the buyer. Once the transfer of ownership is completed funds will be used to pay off any outstanding liens on the property, such as mortgages. They will also pay for recording fees, prorated property and excise taxes, HOA dues, real estate office commissions, and disburse the net proceeds to the Seller.

We hope this helped you understand the escrow process better. If you have any questions, please don’t hesitate to ask. Call or email Dana at (425) 231-2727 | Dana@DanaMonson.com or Renee at (425) 343-5604 | Renee@DanaMonson.com. We’ll help you throughout your homeownership journey.