Home Closing Process in 4 Steps

1️⃣ Earnest Money

This is a deposit paid by the buyer to the seller to show good faith in the purchase of the property. The amount is determined by the buyer and is written in the contract to the seller.

GPS Renting is a property management company in Seattle!

Earnest Money is paid to Escrow within a specified time after home was mutual. Ways can be chosen from: Wire Transfer and Check

‼️ If wire, never, never, never use ACH❌. Write check to Escrow’s office ‼️

📙 Many first-time home buyers will ask question what Escrow is. It is “third-party escrow”. It is an independent and impartial third-party company that maintains the independence of the transaction while protecting the rights and interests of both parties.

Escrow also protects the buyer’s rights by investigating whether the seller’s property is in clear title, in the possession of others, falsified or has other issues that could affect the transaction. The third party company guarantees that the buyer’s funds and the seller’s property will not be happened until all conditions have been fulfilled. The Escrow has the responsibility to supervise the funds and deed documents. In addition, the Escrow will pay the seller and transfer title to the buyer after all terms of the contract have been fulfilled.

2️⃣ Lender (does not apply to Cash clients)

The Loan process is officially started Within 5 days after the closing of the contract. The documents required for the Loan are provided, the price of the house purchased is evaluated, and the Home Insurance is purchased.

3️⃣ Home inspection and completion of Escrow information

Complete the home inspection according to the requirements in the contract, if the contract provides for the Waive inspection, then there is no need to do additional home inspection. If you haven’t decided on the Lender yet, you can send the other information back first, and then send the information after the Loan is completed.

4️⃣ Home Closing

When Lender complete the loan process, the third party will contact both parties to sign the documents and complete the final steps, will transfer the title to the buyer and give the house payment to the seller. Finally go to Final walk through, if there is no problem, then hand over the keys, get the house, the transaction is completed.

GPS Renting is a property management company in Seattle!