1. GUIDE TO THE ESCROW PROCESS

2. STEP 1: OPEN ESCROW Once a contract has been fully executed and agreed upon by both parties, escrow can open. Typically, the seller's agent will contact an Escrow Officer to secure an escrow number for the transaction. TIP: Escrow company and officer are one of the many terms of the contract that can be negotiated. STEP 2: ESCROW INSTRUCTIONS The Escrow Officer will review the contract and draw up escrow instructions. These instructions are then delivered to the agents and their clients for signature and to verify that they are error-free. These instructions essentially give the Escrow Officer a roadmap of what to do and when to do it, as well as give the Escrow Officer authority to act. If it has not already been done by the listing agent, the Escrow Officer will also order a real property title search with the designated Title Company. TIP: It is possible to make a change to the escrow instructions, known as an Escrow Amendment, but it must be agreed in writing by all parties before the Escrow Officer can take any action outside the original instructions. Be sure to look over your escrow instructions line-by-line prior to signing!

3. STEP 3: FOLLOW THE CONTRACT The Escrow Officer will ensure that everything in the contract is carried out. This may include inspections, such as termite and home inspections, as well as document collection. Documents collected may include: loan documents, tax statements, fire and other insurance policies, title insurance policies, terms of sale and any seller-assisted financing, and requests for payment for various services to be paid out of escrow funds. TIP: You will need lots of documentation for many aspects of your real estate transaction. Be sure to have these readily available so that you do not delay the transaction! STEP 4: ACCOUNTING OF MONEY One of the primary purposes of an Escrow Officer is to ensure that all money related to the transaction is accounted for. During this part of the process, the Escrow Officer will work with the seller and the lender to receive their funds, as well as pay for any necessary services out of escrow. TIP: This part of the process, also called "Funding", typically involves the Escrow Officer, the mortgage broker and the lender.

4. STEP 5: CLOSING & RECORDING When all the conditions required in the Escrow Instructions have been satisfied, the escrow is complete! At this time, the Escrow Officer will release funds and documents according to the instructions, pay all bills as authorized, and prepare and deliver a final closing statement, known as a HUD-1, to the parties. This statement is a final accounting and itemized list of all charges and credits in connection to the escrow account. Recording signifies that the title company has released all the necessary documents to the county where the property is located and they have been officially Recorded. This typically occurs the following business day after funding, however it is sometimes possible to record on the same day. TIP: You can count on us for one-on-one guidance and counseling throughout the escrow process!

5. WHO IS INVOLVED IN ESCROW? A real estate transaction requires one or more buyers and one or more sellers. The transacting parties will also typically have representation in the form of real estate agents. The Escrow Officer is the neutral third-party selected to carry out the escrow process according to the timeline and process laid out in the Escrow Instructions. The Title Officer is responsible for investigating titles to the real estate and land prior to sale. Specifically, he or she is looking for any irregularities that may affect the transaction or use of the property, such as outstanding taxes, liens, easements or zoning restrictions. If any issues are found, the title officer will facilitate their research, assessment and resolution with the transacting parties, government commissions, etc. Typically, the title officer also facilitates the Recording of documents. This involves going to the County Recorders Office to deliver all the necessary paperwork and documentation for the transaction to be Recorded. The underwriter never actually meets the buyer; his or her role is to check over the figures of the loan, make sure all paperwork is in order guidelines are met, and ultimately give final loan approval. The lender is your singular contact for your home loan, and will have been involved long before the escrow is opened. During the escrow period, the lender works with the escrow officer to facilitate loan funding before the closing.

6. TIPS FOR A SUCCESSFUL ESCROW BE PREPARED. You will be expected to provide several pieces of information. Be sure to have the following readily available: Correct spelling of your name and current contact information Contact information for your lender Fire Insurance Policy information Title Vesting Choice Copies of Trust Documents (if applicable) REVIEW & UNDERSTAND BEFORE SIGNING. Make sure to read and understand your escrow instructions before signing them. Mistakes can happen! Once escrow instructions have been executed by all parties, they cannot be deviated from except in an Amendment, which will also need to be signed by all parties. Especially make sure that your name, vesting information, property address, important dates and any other terms & conditions are reflected correctly. ASK FOR AN ESTIMATED HUD-1 UP-FRONT. The HUD-1 is the finalized itemization of all expenditures and credits related to the escrow account. An Estimated HUD-1 will give you an idea of closing costs and your final down payment will look like, as well as give you time to get financially prepared for the closing. This is a helpful tool for you in determining escrow, title and other miscellaneous, non-recurring charges, however be aware that it may not reflect everything. TELL YOUR LENDER & ESCROW OFFICER ABOUT CREDITS. You may be entitled to credits at the close of escrow, however lenders typically have allowable thresholds when it comes to money-back. Be sure that both your lender and your escrow officer are aware of any credits that you are entitled to these should be outlined in your contracts and included in the escrow instructions.

7. TIPS FOR A SUCCESSFUL ESCROW REVIEW THE PRELIMINARY TITLE. The preliminary title report can often shed light on whether the transaction will be easy or difficult to process. Whether you are the seller or buyer, it is a good idea to play an active role in determining the title status. Free and Clear is a good thing! Cloudy title reports signify that additional work must be done before the property may be sold. This may include tax liens, easements or other defects. COMMUNICATE REGULARLY. Communication is key to a stress-free escrow. Be sure to keep in touch with the necessary players, including: The escrow officer make sure they have everything they need from you, including signatures and any necessary documentation Your lender check on the status of your loan frequently throughout the escrow process. Do not take any actions that will change your financial situation, such as open a new line of credit, but be sure to notify the necessary parties immediately if something occurs that will affect the approval and underwriting process. STICK TO THE TIMELINE. Throughout the escrow process, you will be sent documents for signature such as information request forms, title-related documents, copies of reports and other disclosures that require written approval. Delaying handling these documents can cause problems! Remember, your escrow officer is on a strict timeline according to the escrow instructions. Review and sign any documents as quickly as possible, and do not hesitate to ask any questions whenever they might come up.