What You Should Know About the Escrow Process

After you’ve found your dream home and get your offer accepted, there’s one final step to complete: The escrow process.

This step is also referred to as closing, and it’s the last hurdle standing between you and moving into your new home. As your realtor, I’ll be able to guide you through the escrow process, but that’s no reason not to fully understand how it works.


Title Companies                                                                      

Title companies make sure the title is free and clear of any encumbrances. This can include judgments, liens, fraud, and anything else that needs to be ironed out before the deal can go through. Once the title company clears the title, it issues an insurance policy on the title, in order to protect both the buyer and lender from future property claims and disputes.

Escrow Agents

Escrow agents act as a neutral third party to handle title and escrow work, financing, and providing transaction instructions and other paperwork including mortgage refinance or title transfers. An escrow agent is there to file necessary paperwork and safely handle documents. While they are not here to give advice, you may want to reach out to them if the process is taking too long, to see if there is anything you can do to speed the process up.

Finding the Best Agent

As your realtor, I can recommend an escrow agent to help finalize the process. However, you’re free to seek referrals from friends and family members who may have worked with specific agents. However, before making any decisions, your agent should be familiar with the type of home you are buying, as well as being located near you to save time.

Finding the Best Deal

Just because your lender suggests title and escrow services, that doesn’t mean that you are required to go with their suggestions. Shopping around could save you a bit of money.  In order to compare prices:

  • Request a list of title and escrow costs. Be sure to compare everything from escrow service fees to title search and insurance premiums
  • Find out if the buyer or seller is responsible for the fees
  • If your initial quote seems considerably lower than competitor’s offers, watch out for incidental fees like wire transfer, and copying, courier, and tax fees. These smaller fees can easily add up, making their initial quote outrageously more expensive.

Now that you understand the escrow process, you can confidently move forward with the purchase of your new home. And as the # 1 realtor in Encinitas, I’ll be by your side to help you with all of your needs.

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