There is one more thing between you and your new home: Escrow. This is the time frame that takes place between you and the seller signing the purchase agreement and when you close on the house and take possession. Your realtor will have a title agent, a neutral 3rd party, who will be the intermediary person that supervises the process. They prepare the title reports, process the loans, be sure all contingencies are cleared, etc., etc.
The escrow part of the process is mainly on the shoulder of the buyer. By the time escrow is closing, the buyer’s financing should be in place and approved that all of the contingencies they proposed have been met. The buyer should have had the house appraised by now, which is usually required by all mortgage lenders. They should have their title insurance, homeowners insurance all in place as well. If any issues have arose during the process such as repairs of issues that were discovered during inspections, these may bring more negotiations to the table.
What Happens During Closing
When escrow is ready to close, referred to as “the closing,” the sell and the buyer both should have all terms that they agreed to fulfilled. The closing will usually have all parties involved present such as the buyer, the seller, the realtor for both sides and the title agent. The final documents and funding are exchanged, and the buyer has given the deed as well any other transfer documents that show a clear title to the property. Closing is usually done in one day, but there it can take a few days in extreme circumstances.