Carlsbad Home Buyers, You are Now in Escrow
Here are 10 Things to Expect
Congratulations! We have an accepted offer on your new Carlsbad home and escrow is now open. Here are 10 things to know about as we move forward. (If you are not in California, keep in mind the process will vary in other jurisdictions).
This is NOT an exhaustive live - please feel free to get in touch with me at (760) 840-1360 with any questions and for help with buying your new Carlsbad home.
For more tips and advice on how to buy a home, from start to finish, check out my series of 23 short videos on my YouTube Channel!
10 IMPORTANT TO DO ITEMS
1. You will need to wire your earnest money deposit (EMD) you agreed to in the contract to escrow within 3 business days (unless otherwise agreed on in writing). Because of increasing wire fraud, you will want to VERIFY wiring instructions you receive via email over the phone with the escrow company. I recommend doing this even if the instructions are encrypted or password protected.
2. You should expect to receive disclosures from the seller, many of which are required by state and federal law. It’s important to review these thoroughly, then sign/initial and date, and return to your agent. Don’t hesitate to check with your agent if there are any questions.
3. Escrow will provide you with the escrow documents (e.g., statement of information, escrow instructions) which you should review, complete, sign and return to them promptly. Reach out to escrow if there are questions about the information required. And be sure to keep a copy for yourself!
4. You should arrange for a home inspection as soon as possible; not having a home inspection is risky. Your agent will need to coordinate with the seller. Of course you will want to be present for this, at least at the end so you can review the findings with the inspector and ask any questions. A detailed report will be provided and you can always check with the inspector if additional questions arise.
5. You should also arrange for any additional inspections you desire, including any that are recommended by the home inspector (e.g., roof, plumbing, mold, pool, electrical, HVAC). You should read this article about other inspections to have when purchasing a home in Carlsbad.
6. It’s important to review the written home inspection report carefully and determine if you are going to ask for any repairs from the seller. Bear in mind that our California contract states properties are sold in present “AS IS” condition as of the time of acceptance, unless otherwise agreed on in writing. You should discuss any concerns about condition noted by the inspector, or things that you observe, with your agent. Keep in mind the seller has no obligation to do any repairs, even if you request them; also, the seller can agree to do some but not all repairs, or might offer a credit in lieu of repairs.
7. You should check with your lender about whether or not to make the next month’s mortgage payment, depending on when your closing date is scheduled.
8. It’s important, if you are getting a mortgage, to promptly make a formal application for your loan and provide your lender with all required documents, and to include the signed contract and all associated paperwork. Your lender should already have a fair amount of documentation from your pre-approval (you DID do that, right?!), but the formal loan application process will require more information and verification. Be sure to sign and return all lender documents and request for information as promptly as possible. And don’t hesitate to ask your lender any questions about the process, and paperwork that you are being asked to provide. Make sure your agent has all the contact information for your lender so he/she can stay in touch and make sure everything is on track.
9. You will want to check with your insurance company on homeowner’s insurance for your new home. It’s essential to know the cost, of course, but you also want be aware of any past claims so you can ask the seller. There may issues that will concern an insurance provider or add to the costs of your insurance (e.g., house is in a high risk fire zone or in a flood zone). Your lender will require a full year of insurance to be paid at the time of closing, with an effective date that day. Make sure your lender and escrow have the contact information for your insurance provider early in the process!
10. Those dates in your contract are key, so be sure to pay attention to them (e.g., providing EMD, applying for your loan, removing contingencies). While your Realtor will help you keep on track be sure to stay in touch so you know what is due and when. You might want to read this important article - Contract Dates are There for a Reason, so Pay Attention.
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If I can provide more information about homes for sale in Carlsbad and in surrounding areas, our local housing market, or otherwise assist you, friends or family in a home search or home sale, please contact my mobile office or text me at (760) 840-1360, or feel free to email me at JeffDowlerSolutions@gmail.com
Serving Carlsbad (including Aviara, La Costa & Carlsbad Village), Encinitas (including Leucadia & Olivenhain), Cardiff, Solana Beach, Del Mar, La Jolla, Rancho Santa Fe, San Marcos (including San Elijo Hills), Oceanside, Escondido, and San Diego
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