Many people will tell you that you really can’t time the housing market. However, I can tell you that last year at the start of the pandemic was one of the worst times to own a home. Dealing with the limited period known as escrow – the waiting period while the buyer’s money is held by a trusted third party before paying the seller – was extremely stressful in that uncertain state of the world.
We can laugh about it now, because things finally worked out. However, it was nothing strange (at the time) to hear how the global economy was shutting down while we were making the biggest purchase of our lives. We almost backed out several times, scared of the uncertainties. Luckily, we stayed there to finally lock down on our new family home.
Thankfully, this wasn’t the first time we bought a home. At least we had some previous experience in the process. Otherwise, not knowing what to do (and how to avoid all the landmines) would have pushed us over the edge and walked away from the deal. We would have missed out on buying a beautiful house which we then used to get out of the lockdown.
Are you a first time home buyer and not really sure what to expect from escrow? Here is a list of do’s and don’ts that you should know about.
13. Ask for an outline of the entire process
A good Realtor will guide you through the process. However, my experience is that no one will tell you what to expect unless you specifically ask them what’s going on. Not that Realtors can’t be bothered to explain it. It’s just that they have become so accustomed to the process as part of their daily duties that it often seems too obvious to need explanation. But if you take the point of asking they will explain it.
As a first time home buyer, it really helps to get an outline of the entire escrow process. Escrow is typically a 30 day period, but can sometimes be shorter or longer. It can be helpful to give yourself a time frame for the entire month. That way, you know what’s coming (and when), so you won’t be surprised by anything. You’ll also want to know exactly what is expected of you. If you need to deliver funds or documents (or anything else) by a certain date to ensure the escrow process is complete, make sure you do so. You definitely don’t want to schedule holidays or have only limited availability during your escrow period. You want to be prepared to make sure everything is hooked up neatly. The third party holds the money or property until both parties have fulfilled their contractual duties.
