Congratulations! Your offer has been accepted! Now, what happens next? The Next step is --the escrow process.
Escrow is a neutral third-party that facilitates the contract agreed upon by both the buyer and seller. Their role is to ensure all terms of the contract are met before closing. Escrow cannot unilaterally add or change anything in the contract unless it is put in writing and signed by both parties.
Let's break it down step by step so you know exactly what to expect.
Step 1: Earnest Money Deposit "First, you'll be asked to wire your Earnest Money Deposit (EMD)--Escrow will email you the wiring instructions. This deposit is a good faith payment that shows you're serious about purchasing the home. In Las Vegas, this can be as low as $1,000, but typically, it's $5,000 or more. It's negotiable. Your deposit will be held in a non-interest-bearing escrow account and will be applied toward your down payment and closing costs at the time of closing."*
Step 2: The Contract Timeline & Contingencies "By this point, you and the seller have agreed on a closing date and all contract contingencies--essentially, the conditions that must be met before the sale is finalized. Most transactions in Las Vegas follow a 30-day escrow period, unless negotiated otherwise.
During this time, we will complete all necessary steps to ensure a smooth closing." "One of the first things we'll do is schedule a home inspection. This should be completed as soon as possible after signing the contract. If the inspection uncovers issues--such as roof damage, plumbing problems, or structural concerns--you'll have several options: Negotiate repairs with the seller through their agent Request a credit to fix the issues yourself, Ask the seller to make repairs and provide receipts or if the issues are too significant, you have the option to cancel and get your earnest money back.
If you're financing your home, now's the time to finalize your mortgage loan. Hopefully, you were already pre-approved before making an offer (which is why I always recommend it!), but now your lender will: Order the appraisal Verify your income and assets to Ensure you still qualify for the loan
IMPORTANT: Whatever you do, DO NOT buy a car or make any large purchases during this time! This can change your debt-to-income ratio and potentially disqualify you for the loan. I once had a buyer lose their home because of this mistake!
Now, if you cannot get final loan approval within the contract's timeframe--and the seller doesn't agree to an extension--I will need to cancel the deal in writing so you can get your deposit back. This is why pre-approval is so critical!
Next, I will order the HOA documents for your review. If you have pets, we need to check the HOA's pet policies. You'll also want to review the budget and meeting minutes to see if any upcoming HOA fee increases are expected and so on.
Additionally, the seller must provide a marketable title, meaning the property is free of liens or legal issues. The title company will conduct a full title search to ensure there are no surprises when you take ownership. They will also make sure that all local and state property transfer laws are followed.
One last major step before closing--securing homeowner's insurance. Your lender will require proof of insurance before they fund the loan. It's best to start shopping for coverage immediately after signing the contract so there are no last-minute delays. I can recommend trusted insurance agents who specialize in Las Vegas properties.
Once all contingencies are met, financing is secured, and the title is cleared, we're almost there! You'll do a final walkthrough of the home to ensure it's in the same condition as when you made the offer. You'll verify that any negotiated repairs have been completed.
Then, it's time to sign the closing documents and wire your down payment and closing costs funds. After signing, we wait for the home to record with the county. Once we receive confirmation, I will track you down and personally hand you your keys--**BOOM! You're officially a homeowner!**