Friday, January 22, 2010
Closing Escrow - The Home is Yours!
The final step of the CA buying process is called closing. Closing is actually short for "closing escrow"and is the time that the escrow company will make sure all the paperwork has been signed, all the money has been collected, and we are ready to transfer ownership of the property.
Assuming your loan has been funded, all parties will be notified we move to recording of the deed and mortage paperwork. If this happens early in the day, some counties will let you record same day. Usually though, the deed and mortgage documents will be recorded next business day.
Escrow is officially closed when escrow recieves confirmation that the deed has recorded and the seller has recieved all proceeds from sale. At this point, the house is yours!
Depending on how your purchase agreement is structured, it is possible to move in on the day escrow is closed, however, it is more common to move in 2-3 days after. The reason is to give the seller time to completely remove everything from the residence. This can be frustrating to some buyers who are anxious to move into their new home. They just need to understand that the many sellers have moved out of a house prior to closing only to have the buyer cancel the contract. This can cause way more problems than having the buyer wait an extra day or three to move in.
Either way, if one is extremely worried about a seller who might not move out, they can always ask for the sale proceeds to be witheld in escrow until the seller has vacated the residence.
Once you get the go ahead that the property is ready for you, it is time to move into your new home, Congratulations!