Escrow: Now What?
Congratulations, you are on your way to owning your very own home! Follow these suggestions so that escrow and settlement with go as smooth as possible.
Most importantly, if you are getting a loan, DO NOT MAKE ANY BIG CHANGES! Do not buy a car, do not apply for a new credit card, do not purchase new furniture, do not quit your job, do not max out your credit cards. You were pre-approved for the loan based on your financial situation at the time you applied - if you make big changes to that, you may put your loan in jeopardy.
The period that you are "in escrow" is often 30 days, but may be longer or shorter. During this time, each item specified in the contract must be completed satisfactorily. By the time you have opened escrow, you have come to an agreement with the seller on the closing date and the contingencies. Each contract is different, but most include the following:
1. Earnest money is due within 4 days of an accepted offer. You can either mail or drop off a check made out to "Kanab Realty Real Estate Trust Account" and mail to Karen Heet, Kanab, Realty, 93 W Center Street, Kanab, UT 84741 OR you can wire the funds into the real estate trust account. Ask me for wiring instructions if that's the route you'd like to take.
2. By the Seller Disclosure deadline, the seller will need to disclose everything they know about the property and the title company will provide a preliminary title report for your review.
3. By the Buyers Due Diligence deadline, you will need to have any inspections you'd like completed, at your expense. I will send you the Buyers Due Diligence Checklist so that you have an understanding of all of the things you might want to investigate. This includes getting home insurance estimates, and contacting utility companies for service.
4. By the Financing & Appraisal deadline, your financing and appraisal need to be completed so that final contract documents can be created and settlement can be scheduled.
5. Now is the time to schedule the final walk-through inspection. You should make sure that the property is exactly as the contract says it should be. What you thought to be a "permanently attached" chandelier that would come with the property might have been removed by the seller and replaced with a different fixture entirely.
6. Settlement is when both parties, the seller and buyer, have signed the final contract documents. Closing and possession officially happen once funds are transferred and the documents are recorded with the county. Settlement and Closing can happen on the same day, but closing often happens the day after settlement if one of the parties signs remotely and has to FedEx signed documents to the title company, if a lender is slow to transfer funds, or a number of other reasons.
You've made it! Once the sale has closed, you're the proud owner of a new home. Congratulations!