Escrow Tips for Buyers

Most first-time home buyers, and some returning home buyers are not familiar with the escrow process when buying a home. At first, the process may seem confusing and frustrating to home buyers. So, we have created an easy-to-understand  buyers escrow checklist that covers many of the documents that you will encounter during a typical closing scenario.

In order to ensure a successful escrow process without any delays, the following documents must be reviewed, completed, signed and returned to your escrow officer. Failure to complete and return the following items in a timely manner could result in a delay in closing your escrow on time.

• Escrow instructions
• Confidential Statement of Information
• Request for insurance information
• Preliminary change of ownership
• Vesting worksheet
• Any other miscellaneous documents that your Escrow Officer has specified

Escrow Instructions : The key to any transaction is to read and understand your escrow instructions. If you do not understand them, you should ask your escrow officer to explain the instructions. Also, please review your escrow instructions to ensure accuracy.

Confidential Statement of Information: In order to expedite the completion of your transaction and ensure the successful transfer of title, the title company requesting that you complete the “Statement of Information” form. If any item on this form does not pertain to you, please indicate by entering 'N/A' (Not Applicable).

Request for insurance information: Your new lender will require proof of hazard insurance before funding your loan if insurance has not already been set up as an impound. Please select an insurance agent or company and provide the contact information to your Escrow Officer as soon as possible.

Preliminary change of ownership: This form must be completed by the buyer prior to a transfer of the subject property and filed with each conveyance in the County Recorder's office for the county where the property is located. Please answer all questions in each section, and sign the certificate before sending it to your Escrow Officer. This information is used by the Tax Assessors Office to determine the tax basis for the property.  Please note that there are penalties assessed by the county for failure to complete this form.

Vesting worksheet: After you have determine the manner in which you wish to hold title, please complete, sign and return this form to your Escrow Officer. Your new lender will need this information before your loan documents are drawn.

Any other miscellaneous documents that your Escrow Officer has specified : In special circumstance, your Escrow Officer will inform you if additional documentation is needed. Please be sure to return all documents as quickly as possible to your Escrow Officer so that your escrow closes smoothly.