What Is Escrow? In a nutshell, escrow begins when your earnest money deposit and purchase offer is accepted by the seller. Escrow ends when you become the official new owner, registered in the county records.

The Closing Attorney: Your lender selects a closing attorney, whose job it is to examine and insure title to real estate. After researching the complete recorded history of your prospective property, they will certify that: (1) your title is free and clear of encumbrances (eg. mortgages, leases, or restrictions) by the date of closing, and (2) all new encumbrances are duly included in the title. They will prepare a preliminary title report at the end of the process. If there are any outstanding issues, your attorney will go over it with you in detail.

How to Hold Title: How will you own the property? By yourself, or with someone else? There are at least half a dozen ways to own property, each with its own legal, estate, and tax implications, particularly with respect to selling or transferring, or disposition upon death. It advisable to consult with an attorney or your tax advisor to be sure you select the best way to hold title.

Inspections: Once your offer is accepted by the seller, we will recommend professional inspectors to evaluate your home's major systems. We will even set the appointments for you. Plan on attending all of your inspections with your agent and feel free to ask any question that comes to mind of either the inspector or your agent. During these inspections, you can learn a lot about how your new home functions as well as anything that may be wrong with it. Your agent may recommend other inspections, including but not limited to roof, chimney/fireplace, property boundary survey, well, septic, pool/spa, arborist or mold. Knowledge is gold.

Appraisal and the Loan Process: Keep in close communication with your lender, who will let you know when additional documents are needed to approve your loan application and fund your loan. The lender will often send an appraiser out to the property and you may pay a fee for this service. Appraisers are specialists in evaluating properties, based on a combination of square footage measurements, building costs, and recent sales of comparable properties, all to make sure you are not paying too much for the property. Ask for a copy of your appraisal. When you are within two weeks of closing, double check with your lender to be sure the loan will go through smoothly and on time.

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