If you are planning on taking an additional loan out on your property or refinancing your existing mortgage loan, you can generally expect the lending and escrow process to follow these steps:
The borrower speaks with a lender to determine if they are eligible for a loan. (Credit report, income information, and appraisal of property are taken into consideration here).
The borrower selects a reputable escrow company, such as International City Escrow, Inc. to manage the second half of the transaction once they have been approved for the loan.
Tip: The borrower should research lending institutions and escrow companies in advance. These are the two entities that will manage the loan or refinance transaction. Not all companies are created equally, and it is the borrowers right to select the companies that will be managing their money.
Please note: your lender may recommend an escrow company they have worked with in the past. It is still your right to select the escrow company managing your transaction.
Once your loan has been approved and you have selected International City Escrow, Inc. as your escrow company, the following steps will ensue:
The lender contacts International City Escrow, Inc. on your behalf and requests to open escrow.
International City Escrow, Inc. contacts a Title Company to Open Title Order – this will show who is vested in the property and any existing liens on the property.
International City Escrow, Inc. prepares escrow instructions as determined by the loan terms agreed upon by lender and the borrower.
International City Escrow, Inc. sends escrow instructions to the borrower to review, complete, sign and return to the escrow office.
International City Escrow, Inc. receives signed escrow instructions from the borrower.
International City Escrow, Inc. reviews Title Order and contacts lien holders to order payoff demands for any existing liens.
International City Escrow, Inc. sends payoff demands and Statement of Information to the Title Company to prepare for payment and recording of title.
At the time of funding, the lender will deduct their portion of closing costs and fees and send the remainder of the money to the Title Company.
The Title Company will pay off outstanding taxes and liens (including original mortgage loan(s), if necessary), record the deed of trust and deduct their portion of fees.
The Title Company sends the remaining loan amount to International City Escrow, Inc. which will deduct its portion of fees, and send the remaining balance to the borrower.
To speak with one of our escrow officers, call: (562) 497-9777.