The process
If you’ve just opened escrow, and are now wondering what will happen next, here is an introduction to the escrow process timeline. Although not all home purchases follow the exact same escrow process timeline, the following is a common step-by-step glimpse into the process:
EMD
Ernest money deposit. According to the agreement of the sales contract you will wire funds into escrow.
4. Disclosures
The seller must provide you with a written list of any known problems with the home.
2. Appraisal
The lender will do their own appraisal to ensure that the agreed upon purchase price is not higher than the home value.
5. Inspections
You will need to have a certified home inspection as well as other inspections that are required by the lender such as a pest inspection or a flood inspection.
3. Financing
You may already be pre-approved or pre-qualified for a loan; however, once you have decided on a specific property the lender will prepare a “good faith estimate” that details the loan amount, monthly payments, interest rate, and closing costs.
6. Insurance
Your lender will require you to provide proof of homeowners insurance. You may also need additional insurance, such as flood, earthquake, or hurricane insurance depending on where the home is located.
7. Title report/insurance
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9. HUD forms
This will arrive just before the closing and is the final statement of loan terms, fees, and closing costs. Review it for mistakes.
8. Final walk through
This is done to make sure nothing has changed since you made the purchase offer and that items such as appliances or window treatments are left behind if they are part of the purchase agreement.
10. Close escrow
This is when you close on the home. You will sign lots of documents and will likely need to pay costs related to the sale other than the purchase price. The lender will transfer the remaining purchase money and your escrow funds will be released by the escrow agent and applied to the purchase price.