| The escrow process is an essential process to go | | | | in the contract you'll have with the lender. That is, you'll |
| through when buying a house. It's designed to make | | | | put the address of the property you want to buy. The |
| sure that both the interests of the seller and the buyer | | | | lender will give you a list of the closing costs, which |
| will be protected during the crucial stages of the buying | | | | you should read in detail and compare with the good |
| process. | | | | faith estimate given to you earlier when you were still |
| Say for example after looking through Naples homes | | | | applying for the loan. |
| for sale, you decided to buy Naples real estate. In the | | | | Get the house inspected and approved for insurance. |
| process of buying your beach house, you have had | | | | Get several inspections on the house done so that you |
| your loan preapproved, you've made an offer to the | | | | know more or less what kind of issues you'll be facing |
| seller and the seller has decided to go with your offer. | | | | with the house. Some issues that you could find out |
| Here's a brief walkthru of the part where you need to | | | | during the inspection stage may change your mind |
| use an escrow account. | | | | about buying the house so don't skip it. After you have |
| Open an escrow account. | | | | the inspection done, you can proceed to apply for |
| After you and the seller have agreed on and signed a | | | | hazard insurance. |
| purchase agreement, you should open an escrow | | | | Get the title report and title insurance. |
| account and deposit an earnest money check. The | | | | This is one of those required steps that you'll be |
| amount of the earnest money depends on what you | | | | thankful for because this saves you the hassle of |
| and the seller agreed on. This is deposited to the | | | | discovering in the future that somebody else owns |
| escrow account and most of the time, if you decide to | | | | part of the house you bought from the seller. This step |
| back away from the deal for no good reason, the | | | | is all about taking sure that the title is clean and has no |
| amount of earnest money may be given to the seller | | | | clouds. |
| as compensation for the days that he/she got the | | | | Close the escrow. |
| house off the market in order to arrange the purchase | | | | Here's where money and documents change hands. |
| with you. The earnest money will be added to the | | | | You also have to make sure that you read everything |
| downpayment of the house should the purchase push | | | | that's in all the papers you will sign (and there will be a |
| through. | | | | lot of those) before you sign them. |
| Have the bank appraise the property and secure the | | | | That should be it. There may be a few extra things |
| financing. | | | | you could do in between but more or less, this is what |
| Before you get to the escrow part of the process, | | | | you'll expect during the closing stages of the buying |
| you should already have had your loan preapproved. | | | | process. When in doubt, always ask your real estate |
| The bank will then appraise the property. After the | | | | agent or lawyer for help. |
| appraisal, you'll move forward to completing the details | | | | |