The escrow process from A to Z
Buying a house or a condominium in Los Angeles can seem a little daunting for some people but the process is actually pretty standard and as long as you are working with an experienced agent and good mortgage broker (unless you are an all cash buyer), things should go pretty smoothly.
Escrow From Start to finish
Find a property you want to buy
Make an offer
Most likely, you will have Counter offers, sometimes Multiple Counter offers (not just to you but also to other prospective buyers)
Agreement- Both the seller and the buyer sign the offer.
Open escrow (3rd party company in charge of applying the terms of the contract, does not advise or take sides)
Buyer sends 3% deposit to escrow via wire within 3 days
Buyers schedule inspections (general, sewer, chimney, etc…), buyers always pays for their inspections.
Buyer’s agent sends contract to mortgage broker to begin the actual approval process (Buyer must have been pre-approved to make an offer)
Schedule appraisal for the buyer’s lender/bank (buyer pays)
Inspect and depending on the result of the inspections, possibly request credit/repairs from the seller, negotiate and agree
Review all seller’s disclosures, inquire, research and approve
Confirm neighborhood, schools, safety, etc…
Obtain home insurance
REMOVE INSPECTION CONTINGENCY
Continue with loan approval process with Mrtg Broker
Receive appraisal and confirm value
Mrtg Broker approves the loan and authorizes the removal of the buyer’s loan contingency
REMOVE LOAN CONTINGENCY
5 days prior to COE do final walk through to verify condition of the property
Wire balance of down payment
Next day recording of title – Close of escrow
CONGRATULATIONS!!! YOU ARE A HOME OWNER!
There is obviously a lot more to buying a property than the steps described in this list. If you have any questions or if you would like to know more about buying a property, contact Michel Bron at (310) 467-8042 or email michel@BronRealtyGroup.com