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Here are some FAQs:

How does the escrow process work?
The agent will provide the escrow officer with a copy of the purchase contract, deposit and other necessary information to prepare escrow or supplemental instructions. These instructions cover the requirements agreed upon to close. After review and approval by both buyer and seller, the escrow officer will process the escrow according to the instructions. When all conditions are met, the officer will record all necessary documents and close the escrow.

Who chooses the escrow company, and when?
The escrow company can be selected by the Buyer or Seller, but is often referred by either agent involved. An agent may already have a working relationship with a specific company. Ultimately, it's the Buyer or Seller's choice.

What can help the process go smoothly?
Communication is important! Closing delays can occur:

  • if the Buyer or Seller will be out of town prior to the escrow closing date. Talk to your loan processor and escrow officer to discuss scheduling.
  • when a Buyer incurs additional debt, changes employment status, etc. Credit and employment may need to be verified again prior to the escrow closing date.
  • when a valid photo ID is not available for closing document notarization.
  • closing funds have not cleared the escrow trust account before the escrow closes (wire transfers usually clear with 2-6 hours of origination; California cashier's checks usually clear 24-48 hours after deposit; official, corporate or personal checks may take longer and cause closing delays).

How much are closing costs?
Closing costs depend on the type of transaction. Escrow fees are based on the value of the escrow(sales price, refinance loan amount, etc.), but may vary if additional services are required. Other fees may incur during the escrow (new loan financing charges, title fees, commissions, payoff to existing lender, notary services, etc.) The escrow officer has no control over the fees that are charged by outside parties. Request a closing statement to review all charges and fees prior to the close of escrow.

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