How To Ensure A Smooth Escrow
Homebuyers often have to hold an escrow while buying a home. While it is a very healthy practice, there are the odd instances when the entire experience can be disappointing and turn into an undesirable fiasco. Escrow doesn’t go awry on its own. In most cases, it is owing to unforeseen but important and unavoidable problems. It may be due to human errors, some casual approaches on the part of someone involved in the entire transaction or due to changed circumstances for you as the buyer or on the part of the seller or the lending organization.
Here are a few crucial factors that you must bear in mind to have a smooth ride with your escrow and to ensure that you can quickly close it and move in to your new home.
Closing The Escrow
The objective of having an escrow is to park your money safely with a nonpartisan third party as the intermediary between you and the seller. Most people set the closing date of the escrow just before the moving in date. You may have to move into a new home or move out of your existing home on a certain date but that date or a day or two before that cannot be the closing date of the escrow. An escrow should have a closing date at least a week or a fortnight before the day you have to move in. There can be several unforeseen problems during the closing or in the process of inspections, appraisals or getting the loans approved. Thus, if there is a delay due to any such problem, your escrow won’t be closed and you cannot move in to your new home.
When you set up an escrow, you should start to move quickly on every front. Get an appraiser to evaluate the property, hire a property inspection company to look for any damages or any untoward reality in the property and follow these up with the seller to be sorted out. If you do not move fast, you may end up with these issues when the closing date of the escrow is inching closer and you may have to draw up an entirely new plan of action.
Keep Your Finances Unchanged
Do not buy major items or change your finances, including savings, assets, employment status or available cash, during the escrow process. These changes may delay the approval of your loan which will have a direct impact on the escrow.