One of the most confusing processes for the uninitiated to go through can beĀ buying of a home. At times it may seem that people are speaking a different language than they have ever heard before.

This situation too often leaves a home buyerĀ having to take on blind faith that the brokers, attorneys, escrow agents, inspectors and mortgage agents know what they are doing and acting in the buyers best interest.

TheĀ Las Vegas real estate agentsĀ at Lori Ballen Team donā€™t want their clients to ever feel like they are in the dark.

Here is a very short course to help spread a little light on the escrow process.

Click to See Just Listed Homes with a Map!

What Does Escrow Mean?

The escrow or closing process actually begins once the buyer and the seller haveĀ agreed on a priceĀ and all the conditions for the sale. At the same time that the sales agreement is signed your Las Vegas real estate agent will collect an agreed upon percentage of the sale price from you and deposit it into anĀ escrow accountĀ with anĀ escrow agent.

This known asĀ earnest moneyĀ and as the name implies it is to show that you are earnest in your desire to buy the property. Think of it as a deposit.

What is an Escrow Agent

An escrow agent is a neutral third party who actually handles all of theĀ funds and documents associated with the buying and selling of the property.

Not being a party to the sale, in any way, their function is to make sure that all parts of the sale are executed in an equitable and legal manner. Like a referee or umpire the make sure the rules are followed and that everyone plays fair.

Here’s what’s happening with the Las Vegas Real Estate Market

Steps of the Escrow Process

1. Entering Escrow- Set the sells conditions, sign the sells agreement, open an escrow account andĀ deposit earnest money.

2.Ā Bank Appraisal– You should be pre-approved before you start looking for a home. Still, the bank is going to want their own, independent appraisal to assure the property value will cover the loan amount. Note: TheĀ home buyerĀ usually pays for this and if the property cannot be sufficiently financed sale is canceled andĀ earnest money returned.

3. Estimate of Costs – Once financing is approved you will be given an estimateĀ detailing all of your finances (interest rate, closing costs, inspection fees, etc.) associated with the sale.

4.Ā ObtainĀ inspections– These may or may not be required depending on what area of Las Vegas you are purchasing a home but aĀ generalĀ Home InspectionĀ is always a good idea.

Some other inspections you may consider or be required to have areĀ pest inspection, environmental inspection.

5. Ā AcquireĀ Homeowners Insurance– This is a condition of any mortgage but you donā€™t have to use their recommended insurance company. Shop around to find your best deal and coverage.

6. Receive Title Report andĀ Title Insurance– These assure you that no one else other than the seller has any claim on the property. In real estate parlance, that the property is unencumbered.

7. Final Walk-Through– One last look around the property.

8. Review Costs – This is the final detailed report of all costs associated with the purchase. Check it closely against the estimated costs to make sure that no mistakes have been made or added cost tacked on.

9.Ā Closing– The last step. Where all the money and final paperwork gets taken care of. Be prepared to spend half a day signing your name and reviewing documents.

Lori Ballen Team Reviews
Summary
What is Escrow?
Article Name
What is Escrow?
Description
TheĀ Las Vegas real estate agentsĀ at Lori Ballen Team donā€™t want their clients to ever feel like they are in the dark. Here is a very short course to help spread a little light on the escrow process.
Author
Publisher Name
Lori Ballen Team
Share