Q:  We are getting ready to buy a new home and have heard some nightmarish stories about escrow and the details of purchasing real estate.

A:  The escrow process is the culmination of your negotiations, inspections and financing into the final ownership trasnfer of real estate.  When considering the legal documentation and large sum of money involved, you will realize that this is an important process that no one should enter into lightly.  It is also this realization that may lead to the feeling of being overwhelmed.  Don’t despair; there are ways to avoid this feeling.

First rule of thumb is to surround yourself with professionals who possess vast experience in real estate transactions.  A buyer’s agent should be your first contact.  As your realtor, he or she has a network of experienced professionals to work with through every step of the process.  Ask as many questions as you need to be sure you are working with someone who posesses the knowledge and experience needed to ensure a smooth transcation. 

Financing can create the first sense of being overwhelmed.  To avoid this, make a point to go through the process of getting prequalified.  This is done through a lending institution and will give you a solid foundation to begin your journey through escrow.  Prequalification will ensure that you know the price of home you should be considering and will give you an edge in the negotiating process because you will be perceived as a serious buyer.

Once you have chosen your dream home a multitude of inspections may need to be ordered.  The specific inspections will depend upon your lender’s requirements, your personal preferences and the specifics of the home.  For instance, your lender may only require a general home inspection and termite inspection but if the home has a septic system you will need to be sure it passes inspection as well.  You may also want to have the roof inspected or a thorough inspection of the heating and cooling system performed.  All of these inspections are a part of the contract making this an integral part of the escrow process.

The financing and legal documentation related to a real estate transaction can be seemingly insurmountable; however, there are professionals who are experienced in this area and will help to make the process painless.  Generally, land title companies are chosen to act as your third party closing agent.  As with the choosing of you realtor, lender and inspection professionals, you should ask questions and solicit references to assist you in choosing the best title company.

Your title company assumes a great deal of responsibility in seeing your real estate transaction through to closing.  Once the title company has received your executed contract they will begin to take steps to ensure that all of the financial and legal documentation is gathered in a timely manner.  Working closely with your realtor and your title company will reduce your chances of being overwhelmed and give you the opportunity to truly enjoy the purchase of your new home.