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 orders payoff demands for mortgages and other liens recorded against the property
- You secure home insurance and provide proof of it to your lender
- 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, as the new homeowner, and to the lender
This article is part of the Home Buyer Guide.