Smooth Escrow Process: How to Help Your Transaction Go Smoothly
A successful escrow transaction is all about communication and preparation. When working with an escrow company, there are several key pieces of information that you should provide in order to ensure a smooth process.
- Purchase Contract and Addendums: Provide the fully executed purchase contract and any counters or addendums that have been signed by all parties. This is a crucial document that sets the terms of the sale and outlines the responsibilities of each party.
- Contact Information: Provide the full names, contact information, and addresses of all parties involved in the transaction. This information is used to ensure that all parties are properly communicated with throughout the process.
- Escrow Document Handling: Let the escrow company know how you would like your client’s escrow documents to be handled. Whether you prefer electronic or hard copy, it’s important to make sure that everyone is on the same page.
- Earnest Money Deposit: Provide the status of the Earnest Money Deposit. This is a crucial component of the transaction, and it is important to keep the escrow company informed of any changes.
- Loan Information: Provide as much loan information as possible, including the loan officer’s contact information. This information is needed to ensure that the loan process runs smoothly and that all parties are informed of any developments.
- Contingency Periods: Be sure to provide information about any contingency periods that are in place. This could include things like inspections, appraisals, or other conditions that must be met before the sale can be completed.
- Personalities of the Parties: Advise the escrow officer about the personalities of the parties involved. If you have a buyer or seller who may require special assistance or consideration, it’s important to let the escrow company know so that any potential issues can be addressed early on.
- Residency and Moving Plans: Let the escrow company know if the buyer is going to reside in the property or if it is an investment property. If the seller is moving out of state, purchasing another home, or has other plans following the closing, it’s important to let the escrow company know this information as well.
- Name and Vesting Information: Advise the buyer that they will need to decide how their names are to be shown on the property and what their vesting will be. They may need to consult with a tax or legal professional to make this decision.
- Other Considerations: Provide any other information that may be relevant to the transaction, such as pending divorce, vacation or business trips during escrow, or other special considerations.
In addition to providing the necessary information, there are several helpful tips that can make the escrow process even smoother. Accompany your client when they come to sign the escrow instructions and make sure that they understand the importance of completing all necessary forms. Read the escrow instructions ahead of time, compare them to your contract, and be aware of the time elements involved with loans, documents, and funding.
Understand the Statement of Information form and the HUD/Settlement Statement, and request a copy for your client prior to closing. If there are any requests for repairs or changes to the transaction, advise the escrow company immediately so that necessary amendments can be made. Stay in constant communication with the lender and the escrow company, and make sure that everyone is informed of any changes in terms or closing dates.
At Pathway Escrow, we understand the importance of clear communication and preparation in ensuring a successful escrow transaction. Contact us today to learn more about our services and how we can help you.
