Escrow and Home Buying

As discussed in the previous posts about Escrow, we learned that it is a very important part of the real estate process. But what exactly does escrow mean for the home buyer?

Escrow as a buyer is in a way, is most important. The escrow officer will be working with you, your agent and your lender.

The first step is to send in the EMD money that was agreed upon on the Residential Purchase Agreement.  This allows escrow to open. It simply tells escrow, title and the seller that you are serious and ready to go. Without the Earnest Money Deposit, escrow will not open.

What about my VA loan? I don’t have to put anything down, why do I have to put down an EMD? Will I get my money back?

Yes, you will get your money back! Don’t worry. You can request to have the money returned, or put it towards the other fees that do go into escrow. While you don’t have to put money down, there are usually other fees associated with buying a home. Occasionally, home buyers can negotiate with the seller to pay a portion of the fees that go into escrow, but that’s not usually the case.

After the EMD is in, the escrow officer will begin contact with the title officer and your lender. If any documents are missing signatures, aren’t in the file or needs to be amended, the escrow officer will handle all of this.

As the buyer, escrow is a crucial process as the officer will be working to make sure all documents are in to satisfy the loan and the real estate transaction is smooth.

 

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