Before going into escrow with your home, it’s crucial to take several important steps to ensure a smooth transaction. Here are four essential things to do:
- Review and Negotiate the Purchase Agreement: Carefully review the terms of the purchase agreement with your real estate agent or attorney. Ensure that all agreed-upon terms are accurately reflected, including the sale price, contingencies, and any specific conditions that need to be met before closing.
- Arrange for a Home Inspection: Hire a qualified home inspector to thoroughly examine the property. The inspection should cover all major systems and components of the home, such as the roof, foundation, plumbing, electrical, HVAC, and appliances. Review the inspection report carefully and discuss any issues that arise with the seller. Depending on the findings, negotiate repairs or credits with the seller if necessary.
- Secure Financing: If you’re obtaining a mortgage to finance the purchase, ensure that your financing is in order before entering escrow. This includes completing your mortgage application, providing all required documentation to your lender, and obtaining a pre-approval or pre-qualification letter. Stay in close communication with your lender to ensure that the financing process progresses smoothly and meets all deadlines outlined in the purchase agreement.
- Understand Escrow and Closing Process: Familiarize yourself with the escrow process and what will be required of you leading up to closing. This includes understanding your responsibilities for providing documentation, funds, and completing any necessary paperwork. Coordinate with your real estate agent, lender, and escrow officer to ensure all requirements are met on time.
By completing these four tasks before entering escrow, you can minimize potential delays and complications, ensuring a more efficient and successful home buying process.
