Know Your Responsibilities While In Escrow

Know Your Responsibilities While In Escrow

There are many steps to purchasing a home or property.  One of the last steps is the time during which your loan is being processed.  This is referred to as “being in escrow.”  This happens after your purchase offer has been accepted and after you provide your earnest money to your selected escrow agency.  Although it seems like things are out of your hands now, there are still steps you can take to ensure your property closing goes smoothly.

Stay In Touch And Be Responsive To Your Escrow Agent

Communicate Property GuidingIt is very important to remain accessible to your agent during this time.  Make sure the agency has information about how to best reach you.  Don’t take an extensive vacation where you may be hard to reach.  Even more important than that, however, is following the instructions your Florida or Cape Coral real estate title, escrow agency and mortgage lender provide to you and respond to correspondence from your contacts promptly.  Any delays in response could translate into a delay of the closing.  Ignoring the requests entirely may result in the deal falling apart.

If you have any questions or concerns about your instructions feel free to ask your agent to explain them to you.  At Title Junction, our Cape Coral escrow agents welcome questions from our customers so that we can ease any anxiety they may have and make the closing process a pleasant one.  You should be aware, though, that escrow agents are not lawyers and cannot provide you with legal advice.  If you have a legal matter you will be best served by talking about it with your lawyer.

Freeze Your Finances

During this time, you lender is busy processing your loan.  It is very important that you do not do anything that would change your financial situation while the loan is being processed.

To be safe:

  • Don’t make any large purchases, such as a new car or appliances.
  • Don’t transfer funds among different accounts without having a clear paper trail.
  • Don’t change jobs.
  • Don’t open or close credit card accounts.
  • Do pay your bills on time.

Any and all of these things can impact your credit score or your income to debt ratio.  These criteria are relied upon heavily by lenders when providing a loan.

Being in escrow is probably the most important stage of the purchasing process.  It may be an exciting time but it can also be nerve-wracking.  Problems beyond your control can crop up such as a defect in the real estate title search or contingencies on the sale that are not met.  You may not be able to control everything that goes on during this time but you can do your part to make the process as smooth as possible by staying on top of correspondence and making sure you don’t do anything that could jeopardize your financial situation.

Title Junction is a full service real estate title company serving the area of Fort Myers, Cape Coral and the entire state of Florida since 2005. The company handles a number of real estate title services for both commercial and residential properties. Employees of Title Junction can also act as a witness in courtesy closings as well as an escrow agent or a notary public.

Please contact Jennifer Ferri of Title Junction, LLC for further information @ 239-415-6574 or www.title-junction.com

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Posted on September 20, 2013, in Title and tagged , , , , , , , , , . Bookmark the permalink. Leave a comment.

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