Avoiding Pitfalls on the way to Closing Escrow
Sunday, August 16, 2009 Add a comment
Congratulations, you have an accepted offer and are in escrow. Escrow can last from 21 days to 60 days with 45 being average. This is the period where things get serious and your real estate agent really earns their money. It is also the most stressful time in a real estate transaction. But it doesn’t have to be if you are prepared and have written an offer that meets your needs and capabilities. By that I mean what you can afford to spend on repairs if needed and still make sure your lender approves your funding to close.
To avoid delays in the escrow or even the possibility of the contract being cancelled you must know what your lender requires to get you the funds to close. If your loan is an FHA, Freddie Mac or Fannie MAE type loan the lender is going to want the property to be safe and free of health hazards. That means if you had a pest inspection you will need to have a clear report – free of any section 1 items (Termites, termite damage, fungus, wood rot, etc.). To avoid hassles and further negotiations regarding repairs make sure when you are writing your contrat to purchase the property that you include language that dictates who is responsible for the repairs. If you get this settled up front then your escrow will be a lot smoother and less stressful.
