Buyer Escrow Process

Step-by-Step: Buyer Escrow Process

What you as the buyers agent need to do once your clients offer is accepted through closing in 1o steps. NOTE: Steps 1-5 should be done immediately.

1. Upload Documents to Zipforms

Within 24 hours of accepted offer upload all relevant documents to the checklist tab in Zipforms. This will notify our processor to check and approve your files and put your deal on our pending board.

2. Earnest Money
Earnest money needs to be deposited by your buyer within the time frame in the purchase agreement (usually 2 business days). If you don’t know who is holding the EM contact the Listing Agent and ask. Inform your clients it can be in the form of a personal check (unless otherwise specified in the private remarks) and to put the property address in the memo section. Most of the larger title companies have several easy ways for your client to submit EM.

  • Upload EM Receipt to your Zipform checklist

3. Send documents to the lender

Send the purchase documents to the lender so they can start the full application process. Inform your client their lender will likely reach out and request further items from them and to supply them ASAP to keep things running smoothly.

4. Inspection Period
Inform your client to immediately order inspection of the property (or offer to schedule it for them). A few important notes on inspections.

  • Your client can attend inspections. I recommend they show up apx 30 min after it’s supposed to start so the inspector can get a good start.

  • Set the expectation that inspectors are paid to find every little & big thing they can. I let my clients know we will only be looking to request repairs on safety & financing related issues.

  • PRO TIP: Request the inspector call you after the inspection (before the report is generated) so you can get in front of any potential issues.

  • There are several quality inspectors in our area but we have a great relationship & recommend Hawk Home Inspection 219-730-5463.

5. Inspection responses 
If the inspection revealed any issues, now's the time to either schedule specific inspections or negotiate repairs or credits with the seller, through the listing agent. The primary goal is to have significant issues addressed as well as safety related items or financing related items. Please reach out to a mentor to help you with this process until you feel comfortable.

PRO TIP: Do not share the inspection responses documents with the lender. If they request it please contact a mentor for guidance.

  • Upload response documents to your Zipform checklist

6. Appraisal 
Often the lender will wait until you are done with inspections before ordering appraisal. If you know appraisal hasn’t been ordered yet reach out to the lender and let them know you are through inspections and appraisal can be ordered.

PRO TIP: Tell your client If they are using an FHA loan the appraiser might flag additional things that need fixed as a condition of their loan.

7. Title Commitment & Realtor Info Sheet 
It is the listing agents job to open escrow with the title company immediately after accepted offer. Within a week or 2 of escrow being opened title will send you a copy of the commitment to insure the property. Most title companies will also send a Realtor Info Sheet. You must fill out your side of the info sheet. Make sure to include our office policy in the admin fee section. Return the info sheet AND a copy of the office policy your client signed back to the title company.

IMPORTANT NOTE: If the title did not issue a info sheet it is YOUR responsibility to make sure they have a copy of our office policy signed by your client.

  • Upload the Title Commitment and Realtor info sheet to your Zipform checklist.

8. Clear to Close & Final Disclosure 
The lender will inform you and your client once underwriting is complete and you’ve been issued clear to close. Coordinate with the LA to schedule a time and location that works for all parties. The title company will issue the final Closing Disclosure (aka Master Statement, ALTA) to you and your client. Confirm your commission and the office policy are correct. Make sure your client has copy and inform them it contains the exact downpayment they need to have wired the day before closing.

Pro tip: Don’t assume the lender has communicated clear to close or the downpayment amount with your client.

9. Final Walkthrough

A few days before closing remind your clients to have the utilities changed over and schedule a final walkthrough. Some LA’s will request you use ShowingTime to schedule your walkthrough. While not required, there is an IAR final walkthrough form that can be used to put in writing an acceptance or issues.

  • Upload final walkthrough form (if used) in your Zipform checklist.

10. Day Of Closing 
Inform your clients they will need to bring a valid photo id to closing and confirm that the wire was already initiated. Your job is essentially done by closing time. At the end you will receive some key closing documents and checks. The documents you will receive are The sellers disclosure, The ALTA, and sometimes a copy of the deed.

  • Upload the Sellers Disclosure & ALTA to your Zipform checklist.

A few key tips.

  • Make sure you beat your clients to closing. It’s not a good look when clients are waiting on their agent.

  • Make sure the sellers disclosure is signed & dated by all parties on all 4 pages.

  • Confirm the checks say Listing Leaders Lifestyles.