How to Close on a Home Quickly

Closing escrow fast will put the keys to a new home in your hand sooner.

Knowledge is a secret weapon you can use to speed up the escrow closing process. In the modern real estate market, filled with short sales, foreclosures and bank collapses, being informed is a critical component. Ask the right questions and get the right answers, through knowledge. This secret weapon will help you get the keys to a new home faster.

Instructions

1. Bring the money needed to close the transaction in certified funds. Do not bring a check of any kind to closing because this may cause a delay of up to two weeks while the escrow company cashes and certifies the funds. Ask the escrow company staff members whether they prefer wire transfer or a cashier's check. Do not send the money through the mail without using a tracking number.

2. Hire a knowledgeable real estate agent that will actively manage the escrow process. When selecting a real estate agent, ask "Why should I hire you?" A good agent is often able to respond with a list of the ways that he works to make sure that escrow closes in a timely manner. While real estate agents can't fix every problem that could occur in a transaction, a good agent will have a plan to head off most of the problems that prevent escrow from closing on time.

3. Write the sales contract as cleanly as possible. Do not include lots of complicated terms. Once these details are specified in writing, the escrow will require that each item is met prior to closing, even if the buyer has changed his mind about a particular detail. Write the sales contract to include the buyer's right to rescind the offer and be made whole upon any dissatisfaction during the contingency period. This way, the buyer is protected in the case that he decides not to purchase the home or wants to renegotiate the contract.

4. Hire an escrow company with a good reputation. If the real estate agent hired is in business for any length of time, he is typically able to provide referrals to a good escrow company. Stay in communication with the escrow company at least twice per week. Communicate in writing, in order to create a paper trail.

5. Line up a homeowners insurance policy and any other insurance, such as a flood policy, on the first day that escrow is opened. Give the policy numbers and insurance broker's telephone number to the escrow officer as soon as possible.

References

• Alison McCloskey Escrow Company: How to Close on Time
• VA Home Loan Centers: How Long Will It Take to Buy a Short Sale

Resources

• Read this Article in Spanish
• Escrow Help: Top 10 Escrow Closing Questions and Answers