Setting up preliminary escrow lets you take control of your transaction's destiny by making sure that escrow has 100% of the necessary information that will be needed from the Seller at the onset of the transaction. This allows closing to occur more quickly and speeds up the loan disclosure process.
Upon taking a new listing, open Prelim Escrow to make sure that your transaction is ready to close immediately when an offer comes in.
Prelim Title can be setup simultaneously with the Title Insurer of your choice.
How does it work?
Request preliminary escrow to be opened via secure online request, the Seller completes and submits our easy online Property Information Form.
Is there a fee to setup pre-escrow?
I have never done this before, why now?
The old way of doing things is that a purchase & sale is signed, submitted to escrow and then escrow sends a form to the Sellers to complete, sign, and return providing mortgage loan #'s, HOA information, special assessment information, utilities, etc. Upon receipt of that form, escrow proceeds with ordering the payoffs that will be needed for closing. The problem is that most Sellers take 7-10 days to return this form. Preliminary Escrow allows us to have the information at the onset rather than waiting for the Seller to return the information once there is a signed contract. This will make it so that all pertinent info is readily available and the transaction is TRID compliant when the Buyer's lender is ready to disclose promptly upon mutual acceptance of the offer. This results in closings happening faster.
What does TRID have to do with it?
Lenders are required to provide the Buyer with an accurate disclosure of all fees being charged on their closing, including HOA or other transfer fees, within 3 days of taking a loan appplication. Most of the time, escrow does not yet have the Property Info Form back from the Sellers 3 days in. So we have no way of providing the lender with this info. This leaves it as a "best guess" situation, which can cause a possible need to redisclose the loan later when fees are known. Which in turn can cause closing delays.
How will the Buyer's agent know to use Prestige for escrow?
Please notate in the NWMLS listing comments that pre-escrow has been opened with Prestige Escrow and it is the Seller's request to use us. Explain to them what it means or refer them to this page so that they can fully understand the advantage that this brings to the Buyer. They are also welcomed to call our office if they have additional questions or would like to interview our closing team.
What if the other broker wants to use another escrow company?
First, question their judgment..Is this really someone you want to do business with? Just kidding...
As you probably know by now, it is a huge advantage to both parties to use not only an excellent closing team that understands TRID guidelines and timeframes, but also one that already has all of the information needed to close the transaction. However, if they still wish to close somewhere else, that is fine. There is no cancellation fee on our side and no obligation by the Seller in any way. Please be aware that we cannot release the information that the Seller has provided to us regarding their property and accounts, so the other company will have to re-gather than information from the Seller.
Can we do a split escrow?
Sure! A split escrow is where one escrow company handles the Seller's side of escrow and another handles the Buyer's side. This just needs to be dictated in the purchase contract.
Other questions? Email us.