Escrow Period and Closing
What is Escrow
Escrow typically refers to a third party who holds any earnest money in trust, conducts a title search on the property, works with the buyer’s lender to get through the financing contingency, prepares the HUD-1 Settlement Statement, walks the buyer and seller through the closing documents, and collects funds from the buyer and distributes funds to the seller.
The Escrow period, which is typically 30 days, but can be shorter or longer depending on the terms of your contract, begins when an agreement is reached, and ends at closing.
What Happens During this Period
During your escrow period, you will also enter into your Option Period, which mainly involves any inspections you wish to conduct on the property. Mainly though, the escrow period is where all the behind the scenes magic happens to ensure a smooth conveyance of the home. This is when the appraisal will occur, and your Lender will work with your Real Estate Agent to ensure your transaction will be funded in a timely manner.
Congratulations! You have made it through the home buying process. Closing is the last and final step to owning your home. In Texas, closing will occur at a Title Company or Attorney’s Office, the same Title Company or Attorney who conducted the title search on your property. During the closing the Closing Agent will walk you through a large stack of documents, most of which will require your signature or initial. Closing usually takes about one hour.