Buying a house? Unsure what to expect as you close?
Our experts break down the steps you’ll go through when it comes to title and escrow.
- Your offer on a home has been accepted
- A title search is conducted on the property to determine the status of title
- You put your earnest money into escrow, likely working with an escrow officer
- A commitment for title insurance is given to you – be sure to read it carefully
- Escrow will send opening documents to complete. Please note that it is imperative to return these completed forms promptly to your escrow officer as they contain the information required for the closing.
- Escrow orders payoff demands for mortgages and other liens recorded against the property
- You secure home insurance working with your real estate agent
- You secure a home warranty and provide proof of it to escrow, if applicable
- Loan documents are submitted by the lender to escrow on your behalf
- Escrow arranges the signing of documents which includes a final closing cost summary
- Escrow provides you information to arrange the payment of funds due to close escrow
- Upon receipt of the signed documents and all funds required to close, escrow records the sale with the county, updating ownership records
- Escrow disburses funds per the terms of the transaction
- Your real estate agent gives you keys: you officially own a home, congratulations!
- Separate title insurance policies are issued to you, an OTP for you as the new homeowner, and a LTP to the lender
This article is part of the Home Buyer Guide.