Unlocking the Timeline: Understanding the Average Duration of the Escrow Process
The escrow process is the timeframe between when an offer on real estate property is accepted and the closing date. There are many tasks that must be completed during the escrow process to prepare for the legal arrangement between the buyer and seller. There are a few main facts to understand about the average timeframe of the escrow process when you’re preparing to buy or sell property in Boca Raton, FL.
The Average Timeframe
The escrow process is an average of 30 to 60 days, which is influenced by multiple factors. The agreement between the buyer and seller determines the length of time, as well as the organization of the professionals providing the escrow services. Typically, if the escrow process surpasses 30 days, it may be due to issues that arise, which can lead to delays.
Factors That Determine the Length of the Escrow Process
The escrow process is influenced by the different time requirements for various tasks, state requirements for escrow, proper documents that need to be provided, mortgage pre-approval, and the underwriting process. According to the Ellie Mae Origination Insight Report, the average time was 50 days in 2021 with standard mortgage loans.
Issues That Delay the Escrow Process
There are many different moving parts with the escrow process, which can lead to unexpected delays that push back the closing date. Inspections that are performed can cause delays when issues are discovered, whether there’s mold in the attic or pests in the basement. Locating specific documents can also become an issue. A long list of documents must be provided to close the transaction, which includes termite certification, a copy of the offer, documents for deed transfer, proof of funds, the seller’s disclosure packet, commission instructions, and a prequalification letter.
The escrow service provider can also make the process take longer if they’re unorganized or work at a slower pace. This makes it necessary to use a quality company like Expert Title Company to avoid potential issues that can put the transaction at risk.
How to Expedite the Escrow Process
There are ways to make the escrow process faster and avoid delays, which include having all of the requested documents on hand. It’s also important to choose an escrow agent that is quick to communicate and organized. Avoid traveling and get pre-approved for a loan before you make an offer on a property. Being well-prepared can also help the escrow agent work at a faster pace.
There may also be issues with your credit report, making it necessary to settle any problems before escrow begins to ensure you can obtain the funds for your loan. Unpaid debts, an incomplete loan application, and failing to pay the down payment can also cause the closing date to be rescheduled.
Understanding the average timeframe of the escrow process can help you understand the importance of choosing professional and reputable escrow services in Boca Raton, FL. Contact our team today to learn more about the escrow process and obtain our services for your next real estate transaction.