I’d like to highlight how important it is to pay attention to the terms in your home buying contracts. One in particular many home buyers do not understand, is term 1D in the Residential Purchase Agreement.
1D outlines the close of escrow you are agreeing to. Thirty days is the average turnaround of escrow, however many lenders can get your loan funded much sooner, particularly if there are no credit or serious issues. This is good to understand as price is not the only competitive force in real estate.
Shorter escrow can mean the difference between you being successful in a bid vs. another buyer. Even ten days shorter escrow can make a huge difference, especially on foreclosed properties where banks are gunning for a quick turnaround.
Buyers should consult with their agent and lender on the best escrow timeframe to indicate on the Residential Purchase agreement. It is crucial to be as realistic as possible because if you do not close when you say you are going to in term 1D, you could stand to lose your deposit.
- Original Youtube vid – Why Time of Escrow Counts When Buying a Sacto Home 01/03/2011
- Home Buyers
