Sacramento Home Buying Journey: From Offer Acceptance to Ownership

If you're thinking about buying a home in Sacramento, or if your offer has recently been accepted, congratulations! This blog post will guide you through the exciting journey that begins when you receive the call that you're now a homeowner.

So, what is escrow?

Escrow in Sacramento is the crucial period that commences once your offer is accepted and continues until the transaction is officially closed. Typically, for financed transactions, the escrow period in Sacramento lasts around 30 days. However, it's worth noting that some lenders can expedite loan closings in as little as 17 to 21 days, making for quicker turnaround times.

Once your offer is accepted, All City Homes will promptly send the purchase contract to the title company and your chosen lender on your behalf.

The Role of the Title and Escrow Companies in Real Estate

You might wonder about the role of the title company, also known as the escrow company, in Sacramento's real estate closing process. The title company serves several critical functions, primarily acting as a neutral third party in the transaction. In the Sacramento area, while the majority of escrow fees are typically paid by the buyer (a common practice in San Mateo County), the title company maintains neutrality. In Northern California, it's customary for the same company to handle both title and escrow services, while in Southern California, these roles are often split between two separate companies.

During your transaction, the Sacramento escrow officer will assist you by:

• Preparing your loan documents for your signatures.
• Compiling your estimated closing statement, detailing all transaction costs (similar to the good faith estimate from your lender).
• Acting as a secure "bank" for holding your down payment funds and closing costs, including providing wiring instructions for your closing funds.
• Facilitating in-person meetings for you to sign and notarize your loan documents and closing papers.
• Offering you options for title insurance policies: an owner's policy and a lender's policy. Note that title insurance rates are generally uniform across different title companies, as they are regulated by the California Department of Insurance.
• The title company also manages the payment of the seller's loan (if applicable) and ensures all closing documents are provided to you at the end of the transaction.

Your First Action Items After Offer Acceptance in Sacramento

After your offer is accepted in Sacramento, there are several crucial tasks to address:

1) Initial Deposit: You'll need to send your good faith deposit to the title company, typically within one business day of offer acceptance. It's advisable to complete this step promptly, as it helps secure your deal. The amount is typically 3% of the purchase price. Wiring instructions will be provided, and it's essential to verify them directly with the escrow officer to prevent wire fraud.

2) Finalizing Financing Terms: If you're obtaining a loan, ensure you've finalized your lender within 24 hours of acceptance. Quick closings necessitate prompt action, including ordering the appraisal and beginning final loan processing. Ideally, you've already undergone underwriting to expedite the process. Submitting offers after underwriting can save time and streamline your transaction.

3) Inspections: If your offer includes a property condition contingency, schedule inspections such as a home inspection, pest inspection, or engineering inspection. Investigate any concerns raised by the seller's disclosure package.

4) Homeowner's Insurance in Sacramento: Finalize your homeowner's insurance policy well in advance of closing. Discuss any property-specific questions with your insurance agent. Share your insurance details with your lender and escrow officer.

5) Home Warranty Options: Consider purchasing a home warranty as part of your Sacramento home purchase. Review policy coverage and costs. Notify your escrow officer when you've chosen a policy for inclusion in your closing costs.

6) Scheduling Movers: Secure your preferred moving company well in advance, as availability may be limited based on your target move date. Avoid scheduling movers within days of the planned close of escrow to account for potential delays.

An Overview of the Estimated Closing Statement in Sacramento

Around 5 to 7 days before closing, your lender will send loan documents to escrow. The escrow officer will prepare the final closing documents, which will include title and escrow fees, loan fees, and commission. Property taxes will be prorated, and the statement will also estimate homeowner's insurance costs. Review this statement for accuracy and address any discrepancies with your escrow officer.

What Happens the Week Before Closing in Sacramento?

About a week before closing, take the following actions:

• Finalize your homeowners/hazard insurance policy.
• Transfer utility bills to your name, activate internet, phone, and TV services.
• Schedule a closing appointment with the title company, where you'll sign documents one to three business days before closing. In-person signings are preferable for a smooth transaction.
• Deposit funds into escrow at least two days before closing, typically through wiring.

Do I Need to Be Present on Closing Day in Sacramento?

On the day of closing in Sacramento, once you've signed documents and wired funds to escrow, there's nothing further you need to do. The escrow officer will ensure that all requirements are met, funds are received, and the deed is recorded at the County Recorder's Office in Redwood City. The actual closing typically occurs late morning or early afternoon, at which point, you officially become the owner of your Sacramento home.

That concludes your Sacramento home buying journey! Rest assured that All City Homes is here to guide you every step of the way.