Page 9 - California Home Buyers Handbook

ESCROW PROCESS

ESCROW OPENED
For loan applications taken after October 3, 2015 Escrow number issued, contract and deposit received by escrow
the buyer/consumer must receive the new Closing
Disclosure (CD) at least three business days prior
to the date the buyer/consumer is scheduled to
sign the loan documents. Preliminary Report prepared and distributed for review

Additional terms and appropriate invoices from companies such as termite companies,
homeowner associations, roofers, inspection companies, home warranty companies etc.
forwarded to the Escrow Officer.

CLOSING DISCLOSURE SENT BY THE LENDER OR ESCROW OFFICER TO THE BUYER FOR REVIEW
Seller Closing Disclosure sent to the seller by the Escrow Officer
Estimated Settlement Statement sent to the respective buyer’s and seller’s agents

Escrow receives loan documents and lender instructions for scheduling the signing

SIGNING DATE IS SCHEDULED
Buyer and Seller to bring valid ID to the signing appointment
Buyer to bring funds to close

Signed documents are returned to the lender and funds are requested to close

Funds are received from the lender and documents sent to the County Recorder for
recording

Confirmation of recording is received, funds are disbursed, final settlement statement is
prepared and final CD is sent to the buyer by the lender or Escrow Officer

CONGRATULATIONS
Escrow is now closed. Keys are typically delivered by the agents or the seller
to the new homeowner and the Owner’s Title Policy is delivered by mail.

TRID TERMS

Closing Disclosure – The five-page Closing Disclosure, also Redisclosure – For covered transactions under the TILA-
referred to as CD, must be provided to the consumer three business RESPA Integrated Disclosure (TRID) Rule and under very
days before they close on the loan. The Closing Disclosure details all specific circumstances, the Loan Estimate and/or the Closing
of the costs associated with their mortgage transaction. Disclosure may be revised and delivered to the consumer.

Consummation – Consummation is not the same thing as closing or Three Day Review Period – For covered transactions under
settlement. Consummation occurs when the consumer becomes legally the TRID Rule the creditor is generally required to ensure that
obligated to the creditor on the loan, not, for example, when the the consumer (borrower) receives the Closing Disclosure no later
consumer becomes contractually obligated to a seller on a real estate than three business days prior to the consummation of the loan.
transaction.

Loan Estimate – A three-page Loan Estimate (also called LE)
must be provided to the consumer no later than three business days
after they submit a loan application for most mortgages. The Loan
Estimate provides information about key features, costs and risks of
the mortgage loan for which the consumer is applying.
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