Buying your very own home can be an exciting time in everyone’s life. You will finally get to own your very own property! The only downside to the whole process of course is how long it will take.
Part of buying a house involves the whole process of escrow, which is of course the arrangement both parties have made in which to exchange the monies with a third party, usually a bank.
Escrow can take a fair amount of time to fully process, depending on several factors. The average length of time it takes for escrow to complete tends to be between 30 and 60 days.
Around 30 days is the ideal time period for escrow to complete; anything longer than this, and it could indicate that there have been a few issues that have hampered the process.
If you’re new to all of this escrow stuff and are feeling very confused, there’s no need to panic.
We’ve put together this comprehensive guide to help you and give you all the information that you need to know in regard to the length of time escrow can take, and what factors can influence this.
So let’s take a look at everything that you need to know about escrow!
What Is The Fastest Escrow Can Close?
The fastest amount of time that escrow can close is 30 days. This is the absolute minimum amount of time it will take for the funds to be released from the third party, as it will take time for the whole process of escrow to complete.
Delays can occur when inspections need to be carried out, or if you are having difficulty finding all the documents that you need.
There are of course ways that you can speed up the process of escrow to ensure that any delays can be avoided.
One of the best ways to speed up the whole process of course is to opt for an escrow company that has a reputation for being efficient and getting the process done quickly.
If you opt for a company that isn’t the fastest, this will mean that escrow can take even longer to be fully processed.
What Can Happen During Escrow?
So if your escrow is taking longer than the shorter 30-day period, it’s only natural for you to wonder what on earth is going on here.
And how can you fix it! The most common reasons for escrow being held up can include inspections among other issues.
If something pops up on an inspection such as a pest infestation or anything else of note, this can of course slow down the whole process.
The whole process should usually follow an agreement between a seller and a buyer when purchasing a property.
The process of escrow will be opened in the first week, which is when inspections of the property will begin. Providing that nothing crops up on these inspections, your escrow will progress to the next stage.
You will then need to have your loan agreed from the third party so that you can ensure the funds are in place when escrow closes.
You’ll also have to sign lots of different paperwork during this time, so it will be important to ensure that you have all the documentation that you need to hand.
This is another factor that can sometimes slow down escrow, as if you don’t have everything you need in one place, you will need to spare that crucial time locating it.
Around the second week of escrow is when any repairs or recommendations from a result of the inspections will typically be completed.
This should be around day 22 of escrow to ensure that it is able to complete on time, and that you are able to get your property.
Around the fourth week of escrow is when the appraisal for the property will be completed. So you as the buyer will finally be able to secure the funds for your new home!
Once everything has completed, the escrow process will finish. If there have been any delays in the above steps, this can of course lengthen the time it takes for escrow to complete.
So even though the ideal time period for escrow to complete is 30 days, if there are any delays, this can of course elongate the whole process for up to 60 days.
How Can I Speed Up My Escrow?
You will of course want to avoid any delays to the whole escrow process. So how can you speed the whole thing up and ensure that you are able to stick to that golden deadline of 30 days?
The first thing you can do is to choose the right company for your needs.
One of the most common issues for escrow being slowed down is selecting an incompetent company that doesn’t work as efficiently as they should be.
So make sure to do your research beforehand. This will ensure that you are able to find the best people for the job.
You will want to opt for an escrow company that has a fantastic reputation for doing things efficiently, finishing escrow quickly, and to a high standard.
Other factors you may wish to consider is the size of the company, their location, as well as how much they will charge you for the process of escrow.
Next, you will need to make sure that you are fully prepared for all stages of the escrow process. This will include making sure that you have all the crucial documentation that you need to complete the escrow.
Ensure that you have all the loan documents to hand, as well as any other personal documentation that you will need.
If your escrow company or lender asks for anything, it will speed things up if you are able to give it to them straight away.
Make sure to keep an eye on those inspections, too. If there needs to be any work done, you will want to ensure that it is completed quickly and efficiently, so everything can progress as it needs to.
And lastly, you will want to ensure that your loan has been approved first before you start the escrow process. This will ensure that there are no unnecessary delays, so that you can finish closing escrow within your preferred period of time.
So there you have it! You now know all there is to know about escrow and how long it will take for the process to finish. The average time it takes for escrow to close is between 30 and 60 days, and it can depend on a variety of factors.
Escrow can be delayed because of a slow service (if you opt for a company that is particularly unorganized), because of certain inspections that need to be carried out on the property before escrow can progress, or even because either party is struggling to locate all the documentation that is needed.
The best way to ensure that your escrow only takes around 30 days to complete is to opt for an escrow company that has a reputation for being reliable, completing the process quickly, and to a high standard.
Make sure that you’re not choosing a company that cuts corners or slows down the whole process, otherwise you’ll be waiting longer than you should have to for escrow to complete!