What To Expect Upon Entering Escrow

What To Expect Upon Entering Escrow

Hello it's Monica Diaz!  Welcome to my video blog! 

In a recent video we offered you the point of view of our exclusive escrow partner Juliana Tu of Viva Escrow.  Today we wanted to talk about what you can expect as a Buyer upon entering escrow.

The first thing to understand is you are fully immersed in the transaction. Escrow is open and there are necessary time frames to observe along with initial steps to take before you become a new homeowner.

Most importantly, you must be aware of all the terms stated in the contract you just signed.  Are there contingencies? If there are, what are the time frames of these contingencies? 

For example there may be contingencies for the loan, the appraisal and perhaps the inspection.  You must be able to deal with any one of these contingency scenarios.  For example on a loan contingency, are you prepared to deal with your lender and the various requests for documentation needed to fulfill the closing of your loan?

Now you understand the specific terms of your contract, your first step is to deliver your "Good Faith Deposit" to the Escrow Office.  You've already agreed to this amount in your purchase contract.

Upon delivering your GFD to Escrow you will have disclosures provided to you by the seller.  Make sure you take the time to read and familiarize yourself with all the details of the disclosures. Ask questions to your agent if you are not completely clear on any of the details.

Once you've read and familiarized yourself with the disclosures, it's important to order your home inspection so a licensed professional can thoroughly inspect the property and offer a professional opinion as to the condition of the home.  You can order as many professionals as you want to report on the condition of the house i.e. a roofer, plumber etc.  Keep in mind it is totally your right as a buyer to request the seller to fix or credit you for any issues you are concerned with.  But you also don't want to frustrate the seller by wanting to make an old house new.  This is also the crucial time for you as a Buyer to decide if this is a home worthy of purchase.

Now that your Home Inspection is done and you've decided you are 100% committed to purchasing, the next step is make sure the appraisal supports your purchase price.  If it does, you will need to make sure your loan is approved.  Once it is, you will be asked to remove any remaining contingencies by the seller.  It is here you will want to meet or speak to your agent so you understand what this means to you.

You have now entered the home stretch...once your loan is approved and released for loan documents, you will make an appointment with escrow to sign at escrow or with a mobile notary (which is an added charge).  Make sure and schedule your walk through with your agent to ensure the home is essentially in the same condition as when you entered into escrow and/or any agreed upon repairs were completed. 

The final step is waiting for your loan to fund and then record!  Once the sale has recorded, your possession period depends on what was agreed upon in the contract.
Congratulations...you now own your new home!

As always, if you ever know of a friend, co-worker, relative or even a member of your social communities like Facebook, interested in buying or selling property, connect with me today!

AND REMEMBER-"MONICA MAKES IT HAPPEN"!!!

Government Shutdown: True or False?

Hello it’s Monica Diaz! Welcome to my video blog! By now most of you not living on a deserted island have heard all you wanted to hear about this Government shutdown nonsense.

A lot of my peers have also produced some informative videos detailing how it may effect certain segments of the population.

The Monica Diaz Team wants to put all the rumors to rest by playing a True or False game with you, our viewers. We want you to be FULLY INFORMED of what the shutdown means and how it may or may not affect you as you attempt to negotiate/transact through the situation.

True or False: The IRS is playing a negative role in this escapade.

TRUE. Any mortgage backed by Fannie Mae or Freddie Mac must verify a borrower’s income with the IRS. Because the IRS agents are shutdown, verification paperwork isn’t being processed.

True or False: FHA lenders are also shut down.

FALSE. FHA lenders have the authority to make their own underwriting decisions and don’t need the IRS to verify incomes.

True or False: Borrowers who are already far along in the underwriting process are unlikely to be affected.

TRUE. There are skeleton staffs working at the housing administration level and they are appropriating based on a first in, first out model.  You may experience a slight delay but for the most part your loan should still close within previously established time frames.

True or False: Applying for a Re-Fi right now is good strategy!

FALSE. Anyone applying for a Re-Fi or a New Mortgage is looking at anywhere from 45-90 day wait times (and perhaps longer depending on when the shutdown ends). 

True or False: You should steer clear of Wells Fargo and other TBTF Banks until the shutdown ends!

TRUE. Wells Fargo has already gone on record and stated "new applications will not get completed until after the shutdown ends and borrowers income claims can be officially verified."

True or False: The Government Shutdown will not affect the Housing market very much, or at all.

FALSE. Honestly, if the Shutdown lasts more than a few weeks or even longer, home sales could come to a crashing halt which could significantly weaken our overall economy.

With that said, I implore all of us working inside the Real Estate business to take an active role in being a valuable communicator to your clients as we try and navigate these turbulent times. Be reassuring as much as possible to keep emotions calm asking for patience and logic and reason to rule your decision making.

Your clients will thank you for it long afterwards.

As always, if you ever know of a friend, co-worker, relative or even a member of your social communities like Facebook, interested in buying or selling property, connect with me today!

AND REMEMBER-"MONICA MAKES IT HAPPEN"!!!