hello, this is ben johnson with rpm mortgage in roseville and john campos with remax goalso we’re doing a follow up video to our last video and this video is about escrow, right? what a serious word. what does that mean? what is an escrow process, right? yeah so i’m gonna talk to you guys just a little bit about what escrow is to begin with escrow is a neutral third party so it’s not the buyers. it’s not the sellers and it’s not the agents it’s it’s only company and entity and all they’re doing is following the directions that we’re giving them so we’re presenting them with what’s called the residential purchase agreement which are actually escrow instructions and they’re gonna make sure all those rules are followed so step one the first the first step before anything else we done is that the buyer needs to give a deposit to the escrow company to initiate the contract it’s called consideration so once we have given the title company deposit now, we’re ready to go. we’re starting the escrow process officially. yep so in that first week, there’s gonna be a lot that’s going on. it’s probably packed with stuff from the lender side, right? yeah, so it’s like once you get that offer accepted deposit its go-time, right? we talked about a little bit in our last video, but escrow process can take anywhere from about 15 days to 30 days i think typically we’re seeing about 20-25 days.
That’s pretty accurate but once we get that executed contract john and his team will send that over to me and my team and we order your appraisal right away first day that’s the first thing we want to make sure that the house is worth what you’re buying it for so speed is very important during this process after the appraisals ordered chances are you might have gotten a new pay stub or a new bank statement came out since we did your pre-approval so i’ll ask you for those things, too during this time if i’m asking for paperwork if john needs a signature if i need a signature make sure to answer all your questions, but it’s urgent that we get this stuff done in a timely manner because it does move quick yeah, absolutely times of the essence it says so in the contract itself so if especially the lender because the whole process is really contingent upon them being a little funny or alone if they’re asked for something, it’s really crucial getting back to them. you know with that day. is that is that reasonable? yeah same day 24 hours is is best. okay, so we got the contract deposits on its way to escrow within a couple days. i’ve ordered the appraisal. so we’re on that just to give some context the appraisal takes about seven days to get back. okay, they’re moving pretty quick so within that seven days we’re getting your pay stubs. we’re getting your updated bank statements and we’re also required by law to send you actual loan disclosures. so we’ve looked at the numbers we have an idea of what the payment is going to be we’re watching interest rates the loan disclosures are the initial documents that talk more in depth about your loan and those go to you within three days you can sign those we do ours electronically. so it’s just through docusign if there’s any questions that we need to address we’ll handle it at that time but disclosures is a big part, right? there’s also more disclosure so this first that first week especially is just chock-full of disclosure so on our side which is not the long side if you’re doing the actual real estate contract the sellers going to give you all the disclosures basically telling you everything that they know is the material fact about that property so you can make a decision based on their disclosures additionally, we’re also going to be getting inspections any and all inspections that make you as a buyer feel comfortable with the purchase of the home basically, what we’re doing is weeding out all of the the what-ifs all of the this big scary dark corners that we’re not quite sure about we’re gonna inspect those as much as you’re comfortable with as much as you want to afford so that when you get into the home, there are zero surprises. so that’s what our two weeks looks like i know once we get past the initial disclosure, what is the remainder of your process? i’d like so once you have your disclosures i have the pay stubs out the bank statements by this time about a week in will have the appraisal back, right? so i take the pay stubs the bank statements the appraisal and i send that back to the underwriter so that they can verify the value of the appraisal check all the boxes and approve finally finally. so once that once that happens a closing disclosure goes out to you now a closing disclosure tells you all the numbers as far as down payment and everything like that. it’s as accurate as possible like we’re talking maybe pennies off of what the actual amount they’re gonna bring in right? yeah so the things that can affect the closing disclosure are if we close two days before expected that’s gonna change some small probation numbers after or two days after yeah but the closing disclosure is kind of the final decision on numbers okay down payment we each come in with that goes to the title company as well makes a start repairing yeah so i send one copy to the client of the borrower and then we send one copy to the title company that kind of signals then that hey, you’re gigot the final loan documents pretty soon so closing disclosure goes to you the underwriters sends your loan to our closing department and the closing department draws up legal documents the deed of trust the note for your loan that’s could be attached to the property and they send those to the title company ownership and loan paperwork, right? yeah, exactly so our documents really comes down to two things a deed of trust that makes you the owner to the property, right? and then the deed of trust references the note which details the interest rate and how much you owe the bank that’s what it comes down. so as you’re coming to a close on our end we’re also going to be coming to a close. so all that discovery the disclosures the inspections everything we’re going to button that up so that one either you’re accepting the home is as its condition or two you’re going to negotiate so that you feel that you’re getting a fair price of fare everything this may result in a credit which ultimately could impact that final disclosure so we’re gonna do it just a little bit before they can release their cd or their final closing disclosure we’re gonna make sure if we’re doing any credits or any price reductions for our negotiations we give it to them so they can finish the process. yeah, so once we’re satisfied with the property the closing disclosure looks good the loan documents have been sent to title they usually need about a day or two to work their magic and then we schedule a time to sign so do my best to try to be all of my signings so i know that you attend them as well so it’s important to me to be there to answer any questions at the last minute there really shouldn’t be any because the closing disclosures addressed all the numbers, but that’s that’s the fun day. you know we sit down sign a bunch of papers and then fun. i don’t know where hey yeah, fun is a very loose term so so that wraps everything up and then what’s next that’s it so you guys you know when you take that paperwork, i know they send it back to their department with the funding department right and the money comes you wire in or bringing a check for the remainder of what you owe for for your loan situation? all right we’re going to do a final walkthrough and just make sure the home is substantially the same as what we started which it should be not burned down not flooded and thing like that and then ultimately, that’s a really – closing, you know, we we all agree on the exact closing date and time yeah, it records in the county and then you become the new owner of that property. and that that for me is when the fun begins really. yeah, that’s true i guess the paperwork is not as fun but when you get the keys that’s that’s really we’re talking barbecues and hanging out and inviting friends and decorating. that’s fun yeah signing paperwork. i thought of you guys joints. i’m a numbers guy so that concludes the esco process hope this was valuable i appreciate you taking the time to watch and leave any questions in the comments below and we look to look forward to helping you guys, cheers. bye. bye