Purchasing a house is one of the most exciting, nerve-wracking experience a person can go through. While the idea of finally owning a place of your very own is certainly thrilling, everything that happens before you get the keys to your front door can be confusing. Escrow is one of the aspects of the home buying process that many are confused about.
What happens during the escrow process? Here’s a brief overview of what you can expect:
- An Appraisal. First, you’ll want to have the property appraised, as this determines the actual value of the property and ensures the you aren’t paying more than it is actually worth.
- Secure financing. If you haven’t done so already, you’ll need to secure financing for the purchase price that you and the seller agree on.
- Title Report. You’ll need to review the home’s title report to make sure that there aren’t any liens; if there are, they will need to be cleared before the transaction is complete. Make sure to read the final title report, too, to ensure that it’s clear before the purchase is finalized.
- An inspection will determine if there are any issues with the house, and if so, what needs to be fixed to prior to the completion of the transaction.
- You’ll need to invest in a homeowner’s insurance policy prior to closing, too, and present it to the lender to certify you have the necessary coverage.