7/30/2019 2 Escrow or Closing Flow Chart

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page 33Home Buyers Guide

Escrow/Closing ProcessThe following graphic explains, with some detail, what is involved in an escrow/closing process. Your escrow officer is a

neutral third party. Her/his job is to gather all the documents and information from all involved parties to prepare for

the transfer of the property. The buyer should be aware of and willing to help with any portions of this closing process

where assistance is needed.

Prepare transaction instructions

and pertinent documents

Order title search Process nancing

Receive and reviewpreliminary report

Receive demands (if any),

request clarication of

other liens (if any) and

review taxes on report

Receive demands and

enter into le

Obtain loan approval

to determine that terms

are correct

Request and prepare newloan application

Forward documents to

Title CompanyRequest loan documents

Request loan documents

Obtain signatures

Request beneciary statement

Request beneciary statement and

enter into le. Review terms of transfer

and current payment status

(Is prior approval necessary to record?)

Figure le and request signatures

on all remaining documents

Obtain funds from buyer

Close le. Prepare statements and

dispurse funds.

Review le to determine that all

conditions have been met and that alldocuments are correct and available for

signature (termite inspection,

contingencies released, re insurance

ordered, additional documents, ie.

second deed of trust. bill of sale, etc.,

have been prepared)

Complete closing and forward nal

documents to all interested parties

(buyer, seller, lender)