Mission Viejo Real Estate – Escrow Mumbo Jumbo

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Mission Viejo Real Estate – Escrow Mumbo Jumbo

Escrow Mumbo Jumbo Translated into English for Mission Viejo Home Buyers and Sellers

Every industry has its share of custom jargon – terms that insiders use amongst themselves as a kind of code language or short hand to communicate with each other.  This jargon comes across as Mumbo Jumbo to you and me.  Well, surprise, surprise –  the Mission Viejo Real Estate biz is no different!  So here’s a translation of terms and phrases you might hear thrown around while you are in Escrow – whether you’re a Mission Viejo buyer or a seller, these are good to know about.

Appraisal Came in At Value – this is the code term for “the appraiser has done a comprehensive report to determine that the price the buyer and seller have agreed to in the Mission Viejo Real Estate contract is, indeed, the market value of the home.  The appraiser’s assessment of the value of the home is the same exact number as the purchase price in the contract.”  The alternatives are Appraisal Came in Below Value or Appraisal Came in Above Value – these will be topics of an upcoming blog.

Appraisal Conditions – this means that the appraiser sited some things that must be addressed prior to having a completely official appraisal of the value of the home.  Typically, these are things that you’d need to actually live in the home.  Like to  repair a broken furnace so you don’t freeze to death in the winter.  Or replace  a missing stove so you can cook food to eat in your home.  Or repair toilets so you can…. well, you know that part.

In Underwriting – the buyers’ application for a loan to buy a home in Mission Viejo has to go through Underwriting – this is the department of the bank or loan company that assesses the risk and gives the green light (or not) to go through with lending the money.  Being In Underwriting means they are putting the buyer under a microscope (with a much tighter focus these days.)  Most buyers  want to be Out of Underwriting with as few conditions as possible.

Prior to Doc Conditions – but sometimes Underwriting gives a conditional approval – like saying to the buyer “maybe we’ll give you the money to buy this house if you jump through a couple more hoops for us.  And we won’t even let the next department which actually generates the Loan Documents (Docs) do their job until these additional hoops have been jumped through.”  This could be current pay stubs, updated bank statements, or an up-to-the-minute credit check. But the loan’s not going any further until these conditions are met.  Period.

Prior to Funding Conditions – and then the Underwriter says “OK – we’re close.  Go ahead and Draw Docs but I’m not going to release the money until these other conditions are met.”   More hoops. But the good news it the loan process can inch forward!

Draw(ing) Docs – generate//create the buyer’s physical loan documents.  These days, Docs are usually emailed to escrow.  But there are still some dinosaur companies that have to print out and snail mail the Docs. Uggh.

Packaging the Docs – Once the buyer has gotten a cramp in his/her wrist signing the mountain of documents to secure the loan, the Escrow officer has to organize, copy, collate, bind, fed ex, fax, and other mysterious processes that constitute Packaging the loan documents to be returned to the lending institution.

Calling for Funds – Everything is nice and tidy, that pesky anal retentive Funder  has dotted every i and crossed every t and given the green light for the bank to release the money from the loan into the Escrow account it belongs in to actually complete the purchase.   Horray!

Set up to Record – this is when the stars all line up and there is peace in the Escrow universe.  All the money is in –  the funds from the loan and the buyers’ additional money to close (remainder of their down payment and closing costs.) The Escrow officer coordinates with the Title Officer to record the transfer of the Grant Deed from the seller to the buyer.  Here in Orange County, recordings are done twice each day – once for everything submitted prior to 8 AM and once again for everything received before 3:30 PM. On days when the County Recorders office is open.

We’re Confirmed – What everyone is waiting to hear – this marks the Close of  Escrow.  This is when the County Recorders office give the Title Company confirmation that the Grant Deed has been recorded and the transfer of ownership is complete.

This is just my way of explaining these code words – as a Realtor representing buyers and sellers going through this process every day.   I’m just trying to put it in every day terms and give you an idea of what it means to your Escrow experience when you hear these terms.  Keeping it Real in Orange County Real Estate.  Make sense?

I’m Leslie Eskildsen, just keeping it real in Mission Viejo Real Estate.  And Rancho Santa Margarita, Coto de Caza, Ladera Ranch, Dove Canyon, and Robinson Ranch.

Call me. 949-678-3373. Text me.  Email me.  Fill out this form, for sure.

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