Explaining the Escrow Process for Boston Homebuyers
The Escrow Process Explained from Start to Finish for Boston Home Buyers
There are 6 steps that Boston homebuyers will go through that make up the escrow portion of their home purchase.
Escrow is Opened when the Buyer Makes an Earnest Money or Good Faith Deposit
Once a contract has been agreed upon and accepted by the home seller the home buyer will write a check for the contracted earnest money or good faith deposit amount to be placed in an escrow account under the watchful protection of an escrow agent.
The Home Seller Completes the Required Sellers Disclosure
The seller's disclosure is a legal and required document that communicates what the seller knows about the current safe and livable condition of the property being sold. What the seller is required to share about the condition of the home will vary depending upon the local and state laws put into place for selling residential homes.
Any Agreed Upon and Mandatory Inspections Will Be Conducted
After the seller's disclosure has been filled out and approved after the escrow agent looks it over the inspections will move forward. This can include the safety inspection and the appraisal both to be carried out by licensed professionals.
Once these are conducted official reports will be written up and if any issues arise they will be negotiated through the real estate representation hired by each of the buying and selling parties unless the purchase contract has written terms that there will be no further negotiations. in some cases, further specialized inspections may be ordered such as a termite inspection or mold remediation inspection.
All of the Escrow Documents Will Go Under Review
If the process has plugged along and is going step by step the next portion of the home sale will include looking over all of the documents. These documents will be required for the final close of the home sale. This can include the mortgage application, a signed mortgage deed, the transfer deed, the bill of sale, the seller's affidavit, and the closing disclosure.
The Final Walkthrough Will Take Place if the Buyer Wishes to Do So
At the final walkthrough right before the last papers are signed the buyer is able to take one last look at the property to ensure it is still in the same condition or is in the new revised and agreed upon and expected condition they discussed in negotiations. If it is not, this will be addressed and the proper fixes and adjustments will need to be made to ensure when the buyer is handed the keys the home is as they expect to receive it.
Signing Closing Paperwork
The closing of escrow is different from the closing of the sale. At the closing of escrow, both parties will be ensured by the escrow agent that all terms of the home purchase contract have been met by both parties. At this time Boston homebuyers will be required to pay the down payment and their portion of the closing costs. The seller will also be required to pay any closing costs at this time such as the agent commissions.
It is always helpful to be knowledgeable about every step of a Boston home buying process so that you are aware and prepared every step of the way to make the best-informed life-changing purchase of buying a home.
For more information on purchasing a home in Boston please contact us any time.