Page 11 - Home Buyers and Sellers Handbook English - California

ESCROW PROCESS
Buyer/consumer must receive the Closing Disclosure (CD) at least three business days prior to the date the
buyer/consumer is scheduled to sign the loan documents.

ESCROW OPENED
Escrow number issued, contract and deposit received by escrow.

Preliminary Report/Commitment prepared and distributed for review.

Additional terms and appropriate invoices from companies such as termite companies, homeowner associations, roofers, inspection
companies, home warranty companies etc. forwarded to the Escrow Officer.

CLOSING DISCLOSURE SENT BY THE LENDER OR ESCROW OFFICER TO THE BUYER FOR REVIEW
Seller Closing Disclosure sent to the seller by the Escrow Officer. Estimated Settlement Statement sent to the respective
buyer’s and seller’s agents.

Escrow receives loan documents and lender instructions for scheduling the signing.

SIGNING DATE IS SCHEDULED
Buyer and Seller to bring valid ID to the signing appointment. Buyer to bring funds to close.

Signed documents are returned to the lender and funds are requested to close.

Funds are received from the lender and documents sent to the County Recorder for recording.

Confirmation of recording is received, funds are disbursed, final settlement statement is prepared and final CD is sent to the buyer by
the lender or Escrow Officer.

CONGRATULATIONS
Escrow is now closed. Keys are typically delivered by the agents to the new homeowner and
the Owner’s Title Policy is delivered by mail.

COMMON TERMS

Closing Disclosure – The five-page Closing Disclosure, also referred to as CD, must be provided to the
consumer three business days before they sign their loan documents. The Closing Disclosure details all of the
costs associated with their mortgage transaction.

Consummation – Consummation is not the same thing as closing or settlement. Consummation occurs when the
consumer becomes legally obligated to the creditor on the loan, not, for example, when the consumer becomes
contractually obligated to a seller on a real estate transaction.

Loan Estimate – A three-page Loan Estimate (LE) must be provided to the consumer no later than three
business days after they submit a loan application for most mortgages. The Loan Estimate provides information
about key features, costs and risks of the mortgage loan for which the consumer is applying.

Redisclosure – For covered transactions under the TILA-RESPA Integrated Disclosure (TRID) Rule and
under very specific circumstances, the Loan Estimate and/or the Closing Disclosure may be revised and
delivered to the consumer.

Three-Day Review Period – For transactions covered under the TRID Rule, the creditor is generally required
to ensure that the consumer (borrower) receives the Closing Disclosure no later than three business days prior
to the consummation of the loan.

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