FREQUENTLY ASKED QUESTIONS
What is The Definition of Escrow?
How Does Escrow Work?
Who Chooses an Escrow and When?
How Can We Prepare for Escrow?
Communication is the key to limiting the stress and pressure of obtaining loan approval, processing escrow and planning a move. Common closing delays are caused in the following areas:
- If any of the Buyers or Sellers will be out of town prior to the escrow closing date, contact your loan processor and Escrow Officer to discuss scheduling.
- Do not incur additional debt, change your employment status, etc. Your credit and employment may be verified again as late as the escrow closing date.
- Valid picture ID required for closing document notarization (i.e., current drivers license, State ID, passport)
- Apply for homeowner insurance coverage right away; don’t wait to the last minute, as coverage availability may be limited.
- All closing funds must clear the escrow trust account before escrow closing (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).
What Are Closing Costs?
Why is a “Refundable Pad” Listed on My Estimated Closing Statement?
Can Escrow Accept a Personal Check at The Time of Closing?
The escrow holder must have wired funds in order to close escrow in a timely manner. This is because escrow funds must be “good” or cleared prior to the close of escrow. Personal checks can be accepted however, it will take up to 10 (ten) days to verify funds and for the check to clear.