What to expect during the escrow period
We will walk you through every step of the process. This page is intended to give you an idea of what to expect.
The first two emails from our team pertain to home inspection and earnest money. Depending on offer, home inspection usually takes place within 7 days of offer acceptance date.
Home Inspection: After Seller has accepted offer, Buyer should immediately schedule home inspection (highly recommended). We recommend Buyers attend home inspections. Plan for 3 hours for home inspection. It is OK to show up after inspector starts since first hour or so they are looking things over. Some buyers will also have a termite inspection done. Inspection results likely sent to Buyer and Agent within 24-48 hours following inspection. If inspection is not positive, we notify Seller in writing of results, along with Buyer's intention to move forward, request a credit in lieu of repairs, or ask Seller to repair or replace items that are not up to reasonable standards.
Buyer's Lender and Closing attorney: We forward all contract documents to lender and closer. They will reach out to you directly.
Appraisal. Lender will contact you to order appraisal. The appraisal is usually done within seven days after the home inspection has been given the "all clear". An appraiser will visit home to take pictures, measure square footage and appraise condition of home. From there, appraisal results could take from 1-2 weeks to come in.
If appraisal comes back at value of purchase agreement, and repairs aren't needed, nothing further is required of Seller. If appraisal comes in lower than sales price, we are back to negotiating table to figure out reasonable price that works for all parties involved.
After we past appraisal hurdle, there might be some waiting for “Clear To Close”. A clear to close means that all conditions have been met and buyer has been completely approved and ready to close on sale of home (98% of the time we don’t get clear to close until day before scheduled closing date). Banks often get overwhelmed and wait until last minute. Sometimes we get it earlier and that’s awesome, but don’t be alarmed or think something is wrong if we don’t get it until a day or two before closing date.
Don't worry about utilities right away. About a week or so prior to close, we recommend having them transferred to your name starting on day of closing.
We do a final walkthrough of home just before closing to make sure everything still looks OK.
On closing day, all parties involved will need a copy of driver’s license (or form of identification approved by closing attorney). If you have to write a check at closing, it needs to be Cashiers Check and must be made payable to title company. This is very important, so please discuss with your closing attorney beforehand.
Buyer FAQs
Do I need to maintain integrity of my credit throughout escrow period?
YES, the lender will check your credit score again a few days before closing. Also check out 10 Commandments of Buying a Home
Do I need to attend closing?
Yes, but there are exceptions. Speak with your closing attorney about options.
Does Buyer need to attend home inspection? It is highly recommended you attend inspection but it is optional. This is a time for inspector and Buyer to get to know home.
Will My Agent be at home inspection?
Generally no. This is controversial so I leave it up to Buyer. Some Buyers feel it may be a distraction for agent to be there while other Buyers want agents to attend. Professional Home Inspectors are licensed and insured in state of GA and work directly for Buyer. The home inspection is a time for buyer and inspector to get to know the home. The inspector will send me a copy of report usually within 24 hrs of inspection. There is no substitute for a narrative report documented with digital photos.
Can we ask Seller to repair/replace something or, ask for monetary concession in lieu of repairs once we are under contract? Yes, Buyers have opportunity to make requests during due diligence period.
Will Seller continue to show home after they accept our offer? Likely yes. After Seller accepts an offer, listing agent marks listing as “Pending” which means home has a binding contract to purchase. They may choose to continue to show for potential backup offers. Most Sellers do not continue to show once they accept an offer.
Is the closing date set in stone? Are we guaranteed to close by contract closing date? No, absolutely not. Typically loans take a while in today's market. Lenders are now very thorough in underwriting process so if closing date is 30 days out, there is better than 50% chance it may not close on time unless buyer very clean financially. Closing date is an estimated close by date, only. Very rarely does a deal close earlier than close by date, and if it does close on time, it is usually closing date on purchase agreement.
When will we know if we are closing on time? Crazy as this sounds, we won’t get "clear to close" until 24 to 72 hours before closing. That’s just how lenders work. With thousands of files to go through, they prioritize by closing dates.
What happens if we can’t close on time? We will need to do an amendment to change closing date and all parties will need to agree. It’s usually not an issue with changing closing date.
BUYERS CHECKLIST FOR CLOSING
*** PLEASE BE ADVISED THAT I WILL NOT SHARE ANY SETTLEMENT AGENT WIRING INSTRUCTIONS VIA EMAIL. NO EMPLOYEE, OFFICER OR AFFILIATE OF ATLANTA COMMUNITIES WILL EVER INITIATE A TELEPHONE CALL TO YOU TO OFFER WIRING INSTRUCTIONS. COMMON WIRE FRAUD SCHEMES AND THEFT OF WIRED FUNDS INVOLVE USE OF SIMILAR EMAIL ADDRESSES AND HACKED ACCOUNTS. IF YOU RECEIVE AN EMAIL OF WIRING INSTRUCTIONS FROM "ME" OR ANY "ATLANTA COMMUNITIES" EMPLOYEE OR EMAIL ADDRESS, DO NOT INITIATE A FUNDS TRANSFER AND CONTACT ME PERSONALLY IMMEDIATELY FOR VERIFICATION. Neither I, nor Atlanta Communities, is responsible for any wires sent by you to an incorrect bank account. ALWAYS confirm the proper wire instructions by calling the Settlement Agent's office using a phone number you find from an independent source, such as the internet, NOT the phone number at the bottom of an email that contains any wire instructions. ***
The first two emails from our team pertain to home inspection and earnest money. Depending on offer, home inspection usually takes place within 7 days of offer acceptance date.
Home Inspection: After Seller has accepted offer, Buyer should immediately schedule home inspection (highly recommended). We recommend Buyers attend home inspections. Plan for 3 hours for home inspection. It is OK to show up after inspector starts since first hour or so they are looking things over. Some buyers will also have a termite inspection done. Inspection results likely sent to Buyer and Agent within 24-48 hours following inspection. If inspection is not positive, we notify Seller in writing of results, along with Buyer's intention to move forward, request a credit in lieu of repairs, or ask Seller to repair or replace items that are not up to reasonable standards.
Buyer's Lender and Closing attorney: We forward all contract documents to lender and closer. They will reach out to you directly.
Appraisal. Lender will contact you to order appraisal. The appraisal is usually done within seven days after the home inspection has been given the "all clear". An appraiser will visit home to take pictures, measure square footage and appraise condition of home. From there, appraisal results could take from 1-2 weeks to come in.
If appraisal comes back at value of purchase agreement, and repairs aren't needed, nothing further is required of Seller. If appraisal comes in lower than sales price, we are back to negotiating table to figure out reasonable price that works for all parties involved.
After we past appraisal hurdle, there might be some waiting for “Clear To Close”. A clear to close means that all conditions have been met and buyer has been completely approved and ready to close on sale of home (98% of the time we don’t get clear to close until day before scheduled closing date). Banks often get overwhelmed and wait until last minute. Sometimes we get it earlier and that’s awesome, but don’t be alarmed or think something is wrong if we don’t get it until a day or two before closing date.
Don't worry about utilities right away. About a week or so prior to close, we recommend having them transferred to your name starting on day of closing.
We do a final walkthrough of home just before closing to make sure everything still looks OK.
On closing day, all parties involved will need a copy of driver’s license (or form of identification approved by closing attorney). If you have to write a check at closing, it needs to be Cashiers Check and must be made payable to title company. This is very important, so please discuss with your closing attorney beforehand.
Buyer FAQs
Do I need to maintain integrity of my credit throughout escrow period?
YES, the lender will check your credit score again a few days before closing. Also check out 10 Commandments of Buying a Home
Do I need to attend closing?
Yes, but there are exceptions. Speak with your closing attorney about options.
Does Buyer need to attend home inspection? It is highly recommended you attend inspection but it is optional. This is a time for inspector and Buyer to get to know home.
Will My Agent be at home inspection?
Generally no. This is controversial so I leave it up to Buyer. Some Buyers feel it may be a distraction for agent to be there while other Buyers want agents to attend. Professional Home Inspectors are licensed and insured in state of GA and work directly for Buyer. The home inspection is a time for buyer and inspector to get to know the home. The inspector will send me a copy of report usually within 24 hrs of inspection. There is no substitute for a narrative report documented with digital photos.
Can we ask Seller to repair/replace something or, ask for monetary concession in lieu of repairs once we are under contract? Yes, Buyers have opportunity to make requests during due diligence period.
Will Seller continue to show home after they accept our offer? Likely yes. After Seller accepts an offer, listing agent marks listing as “Pending” which means home has a binding contract to purchase. They may choose to continue to show for potential backup offers. Most Sellers do not continue to show once they accept an offer.
Is the closing date set in stone? Are we guaranteed to close by contract closing date? No, absolutely not. Typically loans take a while in today's market. Lenders are now very thorough in underwriting process so if closing date is 30 days out, there is better than 50% chance it may not close on time unless buyer very clean financially. Closing date is an estimated close by date, only. Very rarely does a deal close earlier than close by date, and if it does close on time, it is usually closing date on purchase agreement.
When will we know if we are closing on time? Crazy as this sounds, we won’t get "clear to close" until 24 to 72 hours before closing. That’s just how lenders work. With thousands of files to go through, they prioritize by closing dates.
What happens if we can’t close on time? We will need to do an amendment to change closing date and all parties will need to agree. It’s usually not an issue with changing closing date.
BUYERS CHECKLIST FOR CLOSING
- Government Issued Photo ID – Driver's license or Passport is acceptable. If neither available, get attorney approval
- If a Power of Attorney is executing closing documents on your behalf, the original must be brought to closing, as it must be recorded. The executed Power of Attorney form must be approved prior to closing by Attorney and Lender
- Closing conditions required by Lender, such as original tax returns, closing statement from sale of previous home, pay stubs or gift letters
- Pursuant to O.C.G.A Section 44-14-13, Georgia law requires all funds for closing over $5,000.00 MUST be in the form of a bank wire, NO EXCEPTIONS (including any gift funds or funds from any other source that may be used by the borrower including closing proceeds from another law firm); funds under $5,000.00 may be a cashier’s check or wire.
*** PLEASE BE ADVISED THAT I WILL NOT SHARE ANY SETTLEMENT AGENT WIRING INSTRUCTIONS VIA EMAIL. NO EMPLOYEE, OFFICER OR AFFILIATE OF ATLANTA COMMUNITIES WILL EVER INITIATE A TELEPHONE CALL TO YOU TO OFFER WIRING INSTRUCTIONS. COMMON WIRE FRAUD SCHEMES AND THEFT OF WIRED FUNDS INVOLVE USE OF SIMILAR EMAIL ADDRESSES AND HACKED ACCOUNTS. IF YOU RECEIVE AN EMAIL OF WIRING INSTRUCTIONS FROM "ME" OR ANY "ATLANTA COMMUNITIES" EMPLOYEE OR EMAIL ADDRESS, DO NOT INITIATE A FUNDS TRANSFER AND CONTACT ME PERSONALLY IMMEDIATELY FOR VERIFICATION. Neither I, nor Atlanta Communities, is responsible for any wires sent by you to an incorrect bank account. ALWAYS confirm the proper wire instructions by calling the Settlement Agent's office using a phone number you find from an independent source, such as the internet, NOT the phone number at the bottom of an email that contains any wire instructions. ***
