Entering escrow is an exciting milestone, but it can also feel overwhelming if you are not fully prepared for what comes next. Escrow is the period where all the essential steps of the transaction take place. It is where financing, inspections, disclosures, and final confirmations all come together to ensure a safe and successful closing. Understanding what to do and what to avoid during this time can save you stress, protect your investment, and keep your transaction moving smoothly. Boutique Realty created this guide to help you stay confident and organized throughout your escrow journey.
Staying Organized and Focused During Escrow
Escrow works best when communication is strong and timelines are respected. Buyers and sellers both play important roles in keeping the process on track.
Stay in Close Communication
Responding quickly to your agent, lender, and escrow officer ensures that no step is delayed. Everything in escrow is time sensitive, and having open communication helps prevent unnecessary complications.
Provide Documents Promptly
Your lender and escrow team will request documents such as bank statements, pay stubs, identification, and other verification items. Submitting these items promptly keeps the file active and progressing toward closing.
Maintain Financial Stability
During escrow, lenders will review and verify your financial picture more than once. Keeping your employment, income, and bank balances consistent helps avoid surprises that could affect your loan approval.
Complete Inspections Early
Scheduling your home inspection, appraisal, and any specialty inspections at the beginning of escrow gives you enough time to review results and negotiate repairs if necessary.
Review Disclosures Carefully
Seller disclosures, reports, and any available association documents contain important details about the property. Taking the time to read everything thoroughly allows you to make informed decisions and ask questions as needed.
Follow Contingency Timelines
Inspection periods, appraisal deadlines, and loan approval timelines must be followed closely. Staying aware of these dates helps protect your rights within the contract and keeps the transaction moving forward.
Common Mistakes to Avoid During Escrow
While escrow brings you closer to closing, it is also a sensitive time when certain actions can unintentionally cause delays or even jeopardize your loan.
Avoid Major Purchases
Large expenses such as furniture, appliances, or a new car can change your debt to income ratio. Avoid making any significant purchases until after you receive your keys.
Do Not Open or Close Credit Accounts
Any change to your credit activity can trigger additional lender reviews. Keeping your credit profile stable is essential for final loan approval.
Avoid Job Changes
Changing jobs, reducing work hours, or switching employment types can create challenges for your lender. If a change is necessary, always discuss it with your agent and lender first.
Do Not Move Money Around
Large transfers or unexplained deposits must be fully documented. Keeping your accounts steady and avoiding unnecessary movement can prevent underwriting delays.
Never Skip the Final Walkthrough
The final walkthrough gives you the chance to verify that the property is in the agreed upon condition and that any required repairs were completed. This is your last opportunity to confirm that everything is ready for closing.
Do Not Miss Deadlines
Escrow is structured around strict timelines. Missing a deadline can cause delays or result in penalties. Staying on schedule is one of the most important parts of a smooth escrow.
Ensuring a Confident Closing Experience
Escrow does not have to be stressful when you have the right team guiding you through each step. Staying proactive, responsive, and fully informed will help you feel confident as you move toward closing day.
Connect with Boutique Realty
Boutique Realty is here to support you with expert guidance, consistent communication, and a personalized approach that makes every step of escrow clear and manageable. Whether you are buying, selling, or planning your next move, our team is here to help you navigate the California real estate market with confidence.
For professional guidance, contact Boutique Realty at 818 312 0831 or al***@**********la.com, or visit allensellsla.com.