Escrow Process
Buying real estate is not just about finding and making an offer on a property. It is also about completing a series of steps that ensure the quality, legality, value, and affordability of the property. Here are some important steps to know.
Escrow
Escrow is the process of transferring the ownership of the property from the seller to the buyer. It involves a third-party agent or company that holds the money and documents until all the conditions of the contract are met. The escrow process typically lasts from 30 to 60 days and involves several tasks, such as opening an escrow account, ordering title insurance, reviewing disclosures, signing documents, and closing the deal.
Inspection
Inspection is the process of examining the physical condition of the property and identifying any defects or issues that may affect its safety, functionality, or value. It involves hiring a professional inspector who will check the property’s structure, systems, appliances, and components. The inspection process typically takes place within 10 to 15 days after the offer is accepted and costs around $500 to $800 depending on the property size. The inspection report will reveal any problems or repairs that need to be addressed by the seller or the buyer.
Appraisal
Appraisal is the process of estimating the market value of the property based on its characteristics, features, and comparable sales. It involves hiring a licensed appraiser who will visit the property and prepare an appraisal report. The appraisal process typically takes place within 20 to 30 days after the offer is accepted and costs around $900 to $1,200 depending on the property size. The appraisal report will determine if the property’s value matches or exceeds the agreed-upon price.
Loan Approval
Loan approval is the process of obtaining financing for the purchase of the property from a bank or a mortgage lender. It involves applying with your personal and financial information, as well as supporting documents such as income statements, tax returns, bank statements, and credit reports. The loan approval process typically takes place within 30 to 45 days after the offer is accepted and depends on your credit score, income, debt-to-income ratio, and down payment. The loan approval will confirm if you qualify for the loan amount and interest rate that you need to buy the property.
These are some of the things that a real estate buyer should know about the escrow, inspection, appraisal, and loan approval process. These processes are essential for ensuring a smooth and successful transaction. If you need more information or assistance with these processes, contact Serenity Realty Guam today and “Let Serenity Guide You Home.”