L.A. real estate news and insights.
If you are a buyer, the best strategy is to close escrow on any day Tuesday - Friday.
For example, have the lender fund your mortgage loan on Monday, close on Tuesday.
Or have the loan fund on Thursday, close on Friday.
Avoid having the lender fund on Friday, pay interest on the loan over the weekend, then close escrow on Monday.
There is no point to pay interest over the weekend on a home you technically don't own yet!
You usually don't close escrow the same day your lender funds your mortgage loan.
Normally the lender funds the loan, then you close escrow the next day.
Also, keep in mind you can't close escrow over the weekend, the county recorder office is closed.
Therefore, if you are scheduled to close escrow on a Monday, the lender must fund the loan the Friday before.
This should be avoided if possible. Why?
Because once the loan is funded, you start to pay interest on that loan.
It's not the best idea to pay interest on a home you technically do not own yet (it's not your home until you close escrow on Monday).
The best thing to do would be to wait and have the lender fund the loan on Monday, then close escrow on Tuesday.
That way you are not wasting money and putting more money into your lender's pockets.
Your friend told you they were thinking of selling their home.
What do I have to do for you to refer me to that friend?
Text me at 818-445-7953.
Thank you!
I just saw on the news that a home buyer was scammed out of her entire deposit amount.
She received fake wiring instructions and had thought the instructions came directly from the escrow company.
She wired her deposit money over to the account on the fake instructions.
The thieves took the money and were never heard from again.
The buyer is now out the money she wired over and no longer has enough money to purchase a home.
She has to wait and save up more cash.
This is a terrible story and I am warning you now to always confirm that the wiring instructions are real.
This is very easy to do!
Once you get the wiring instructions emailed to you, call the escrow company and confirm over the phone that the account number that you are wiring to is in fact their real account.
Once confirmed, then you are safe to send the money.
When you buy a home, you have to put down a deposit.
Typically that deposit amount is 3% of the purchase price of the home.
Keep in mind that this 3% amount is not set in stone, but it is customary.
You can put any amount you want, however the seller will not think you are a serious buyer and probably won't accept your offer unless you put at least 3% for your deposit amount.
You have to send your deposit over to the escrow company to hold within 3 days of getting your offer accepted.
