Buyer & Seller Series
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:
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:
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.
Stay up to date on the latest real estate trends.
Discover HomeLight's Cash Offer program and how it can make you an all-cash buyer, increasing your chances of winning your dream home and saving up to 5% on average co…
Celebrating Values, Family, and the Promise of Generational Wealth
An Evening of Innovation, Networking, and Culinary Delights Awaits
Join Us on November 26th for a Rooftop Extravaganza and Neighborly Connections
Sip, Chat, and Support Local at Broadway Company on November 26th
Don't Just Sell Your Home, Trade It In for Maximum Convenience
Join Our Virtual Event on November 15th for Exclusive Insights
A Guide to Understanding Property Tax Proration in Sacramento Real Estate
Navigating the Path to Your Dream Home in Sacramento
Allow All City Homes to manage every aspect of your home buying and selling experiences. Our agents ensure transparency, empowerment, and assurance throughout the entirety of your real estate journey, supporting you at each stage.