So you’re buying a home in Southern California but one of the most important things to remember is that there are timelines that must be followed as a buyer.
In this post we will breakdown some of the timelines you will be expected to follow and how they will affect your home purchase.
The First 72 Hours
When you first open escrow you will have 72 hours for your Real Estate agent to deliver earnest money from you to your title company. Earnest money is typically around 1% of the purchase price of the home and it shows the seller that you are serious about buying their property.
If you decide to cancel the transaction after a specific period of time the seller may be permitted to keep the earnest money deposit from you.
Breaking Down the Escrow Process
Besides the crucial 72 hour period you must also be aware of the fact that there are multiple contingency periods as a buyer that you will be expected to follow including:
- Inspection – In total you will have 17 days to find a home inspector who is licensed in California or the state where you are planning on buying a home. Some of the areas of the home an inspector will inspect include: HVAC, roof and chimney. Once you have the home inspected you must contact the seller in writing to inform them that you are satisfied with the inspection of the home and are removing your inspection and loan contingency.
- Appraisal – Your lender will most likely require your home to be appraised by day 5 to determine if the home can be considered to be consistent with the price which is proposed in the contract.
- Disclosures – Within no less than 12 days the seller will be required by law to disclose every fact related to the home that you want to purchase including if the home was made with lead paint, asbestos etc.
- Signing Documents – By the 25th day of the escrow process you will need to sign the loan documents and bring the funds necessary to pay closing costs by either paying with a wire transfer or cashier’s check.
- Funding – Once you reach the 30th day of the escrow process your mortgage loan will be fully funded after all paperwork is signed when you are at the title company office. On the day of funding your lender will wire money into the escrow account and it will then be dispersed to the seller as per the terms of the contract.
- Keys – After change of ownership has been recorded with the county recorder’s office you will then be given the keys to the property.
Sellers also have certain contingencies that they have to follow during escrow including providing inspection reports and disclosures. If the seller fails to provide disclosures or follow the escrow timeline the buyer has a right to cancel as well.
Learn More about the Escrow Process
Learn more about the escrow process by calling Fred Sed Realty today at (800) 322-4643 or connect with us through our website.