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Escrow in Irvine, CA

All About Escrow

By , 9:00 am on

The first time you purchase a new home for sale in Irvine, it’s guaranteed to be both complex and filled with a variety of challenging and unfamiliar elements. Escrow is one of the most mysterious and confusing aspects of the home buying process, and it is one that very few new buyers truly understand. Following is a complete breakdown of escrow to prepare you for what lies ahead.

Your Earnest Money Deposit

After you have signed a mutually acceptable purchase agreement with the seller, you’ll give your earnest money check to your agent. This check will then be deposited into an escrow account with the escrow company that is listed in your purchase agreement. This company serves as a neutral third-party that collects all of the necessary closing documents and money.

The Bank Appraisal

The next step in the closing process is to wait for your lender to have the house for sale in Irvine appraised. Financing companies do this in an effort to protect their interests by ensuring that the resale value of the home is sufficiently comparable to the amount of money being loaned. If the home is appraised for less than the desired loan amount, both the funding process and the sale could come to a grinding halt. Fortunately, you have the option of requesting a second appraisal and can even submit additional documentation that better supports the value that you think the home is worth. If all else fails, you may even have sufficient opportunity and time to seek funding from another lender.

Good Faith Estimate and Seller Disclosures

Once your funding has been approved, you’ll be given a good faith estimate by your lender that outlines all of the costs associated with your purchase. Before signing this document, you should carefully review the interest rate, closing costs and total loan amount among other things. At this time, you’ll also be given the opportunity to review and approve all seller disclosures. Having home inspections performed is essential for protecting your interests. Inspection reports will reveal any problems that were not previously disclosed.

Title Insurance

In order to legally purchase and own a home, you have to make sure that the property title is free and clear of all other claims of ownership. This is done by working with a title insurance company. This company will conduct a comprehensive investigation of all public records and other legal claims against the home. When the investigation is done, the title company will issue a title report and title insurance, which will protect you against title issues that were not defined in the report.


Closing escrow is guaranteed to entail a massive amount of documentation, all of which should be diligently reviewed by you and your attorney before being signed. At this time, the escrow officer in charge of your sale will issue a brand new deed for the property that names you as the owner. You can submit your closing costs and down payment via wire transfer and your lender will remit the remaining amount to the seller. You will then be ready to move into your new home.

Although escrow (and the rest of the home buying process) can be confusing, working with an experienced Irvine real estate broker can make the process as seamless as possible. Make an appointment with us today by calling (714) 454-6304 and let us help you navigate the buying process and find the house of your dreams.

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