VALLEYWIDE Escrow

Frequently Asked Questions

BUYERS: 

Q.  When will my good faith deposit check be cashed?
A.  The contract requires your agent to hand the deposit check into escrow within 3 days of acceptance, and the escrow officer must deposit your check within
      24 hours of receipt, as required by state law.  It is a good idea to transfer funds and make your check “good” at the time you make an offer to
      purchase.

Q.  When do I need to deposit the closing funds into escrow?
A.  Final closing funds need to be deposited 2 to 3 business days before the close of escrow, to avoid any delays in funding your loan and closing your escrow.

Q.  Can I use a personal check to close escrow?
A.  No, according to state law, funds to close escrow must be given in the form of a cashier’s check or bank wire.

Q.  What is Table Funding?

A.  Have you have ever been told at closing that a lender was a “table funder”, and wondered what that meant?  Loans that are “Table Funders” eliminate some
      of the steps of funding a loan and closing the escrow, and can make the process from document signing to closing go as quickly as possible.  As an Escrow
      Officer, I love table funders.

     Not many lenders are “table funders”, and you, as an agent, will not be able to control whether or not an escrow ends up with a lender who “table funds”. 
     This is a little information to help you understand the process…

     Normally, buyer signed loan documents have to be returned to the Lender Funding Department for a review period of 24 to 72 hours before funding. 
     During this time, the “Funder” reviews all of the signed loan documents (which may be as many as 90 pages!!!), as well as reviewing their file for other
     funding conditions.  It is almost like a second underwriting process at times, as the lender can sometimes come up with new conditions that weren’t listed
     on the loan documents.  Typically, loans fund 2 to 3 days after the buyer signs loan documents.  In the worse cases, funding may not occur for several
    days to a week after loan documents were signed by the buyer.   

     A Table Funder, on the other hand, does not require a review of the signed loan documents before funding.  In the best case, a table funder will fund the
     very day loan documents are signed.  In many cases, the table funder will require a faxed request for funds from the escrow officer with copies of a portion
     of the loan docs, and may take 24 hours to fund.  As you can see, a table funding can result in a closing 2 or more days faster than a normal funding.

     I am finding on my own escrow desk, that table funding is becoming more common.  Unfortunately, it is still available on only a small fraction of the
     closings.  A table funding is not something that an Agent can necessarily request.  The choice of Lender is made by the Mortgage Broker and buyer,
     based on a lot of criteria, including interest rate and loan programs.  My hope in giving you this explanation is that when you are told you have a
    “table funder”, you will know what to expect.

SELLERS:

Q.  Do I have to make my mortgage payments during escrow? 
A.  The simple answer is yes, you should continue to make payments that become due during escrow, to preserve your credit, and to avoid any late
      charges.  When you make a payment during escrow, please let your escrow officer know, so that we can arrange for an updated payoff statement. 

Q.  Can I use my checks and credit cards on my Home Equity Line of Credit during escrow?
A.  Once a payoff statement is ordered by escrow, you Home Equity Lender will typically put a “freeze” on your line of credit, which will prevent you from
      being able to access your line of credit.  Talk to your escrow officer if you need to access your credit line during escrow.

Q.  When can I expect to receive my proceeds check from the sale of my property?
A.  Due to the complexity of the closing process, a seller can typically expect to receive closing funds the business day after the close of escrow. 

Q.  Why do I have to complete the “Statement of Information” with all my personal information?
A.  The Title Company and Escrow Company uses the Statement of Information to clear tax liens, judgments and other liens on title that might be against a
      person with a similar name to yours.

 

 

VALLEYWIDE Escrow is licensed by the Department of Corporations
License #963-1893 + 863-1244