For many homebuyers in California, the escrow process can seem confusing or overwhelming, especially for first-time homebuyers. In order to help, we’ve outlined the process to help to provide a better understanding of escrow periods for homebuyers.
What Is Escrow?
For a general definition, escrow, in the context of real estate, is the intermediate step after the purchase offer has been accepted but before closing. The term can also refer to the company or agent that facilitates this process and holds onto the funds before closing. Once the purchase agreement has been signed, and the earnest money has been transferred to the seller, escrow begins. The escrow agent will then prepare documents for closing. The documents include tax information, property surveys, loan payoffs, homeowners insurance, and other paperwork needed for the sale of the property.
15-Day Escrow Periods For Purchases
We can easily close purchases in 30 days whether they involve FHA, Conventional or VA financing. The exceptions, of course, are 203k (FHA Construction) Loans, which require at least 45 days to close.
If necessary, we have a couple lenders who will accommodate 15 day closes. We received a complete loan package on Monday for a “super rush purchase”, for example. We got our disclosures back yesterday from the borrower and submitted the file to Bay Equity. We got our formal approval today and ordered the appraisal.
We will have loan documents by Monday or Tuesday, and close next week for sure. If we have an organized and cooperative borrower and no major issues, 15 day closes are not a problem.
Questions? Keep In Touch With JVM Lending
If you have questions about the homebuying process or the mortgage escrow and closing process, contact JVM Lending. Our expert Mortgage Analysts and Client Advisors are available 7 days a week to answer questions and guide you through the homebuying process.
One of the biggest advantages available to JVM homebuyers is JVM’s Homeownership Advantage. JVM Lending offers homebuyers benefits that go far beyond mortgages, including moving assistance, monthly home value updates, home concierge services, and interest rate monitoring services. Keep in touch with JVM Lending to continue to take advantage of all the many offerings JVM offers their homebuyers.
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