Step 5. Ordering of Appraisal, Title, and Escrow - Once the inspection is complete and the decision to proceed has been confirmed, it is time for your Loan Officer to request your Appraisal, Title, and Escrow services.
5-a. The Loan Officer will order the property appraisal on your behalf. The appraisal is not ordered directly, but rather contracted through a third-party called an Appraisal Management Company (AMC).
The Loan Officer will most likely request a cash deposit so that the funds are available to pay the appraiser as soon as the appraisal is delivered. Lenders request deposits because the appraiser needs to be paid whether a transaction closes or not. A Loan Officer is personally liable for any appraisals ordered for his or her clients, so it is important to make sure they receive deposits so that they are not financially responsible in the event that multiple transactions fail to close.
5-b. Title insurance is ordered from the company designated by the Buyer (you) on the Purchase and Sale Agreement. An Owner's Title Insurance Policy is purchased by the Seller to cover you as the Buyer. A Lender's (or Mortgagee's) Title Insurance Policy is purchased by you as the Buyer to cover the lender who will be providing the financing for the purchase.
Before closing a Preliminary Commitment for Title Insurance (title report) is provided to the Buyer and the Lender. It is important for you to review the title report to make sure that there are no items of record that will impair your intended use of the property. If you need assistance, your agent or an attorney can help you understand the title report.
The Lender will also review the title report to make sure that it's lien position for the new loan will be in first lien position and that there are no other matters that would affect the marketability of the property.
5-c. The Escrow service is also ordered from the company designated by the Buyer (you) on the Purchase and Sale Agreement. It is common for the Escrow and Title to be provided by the same company, but not exclusive.
Kevin Hancock
Loan Officer
License # MLO-108328
at 
360.698.6478 office
206.849.6326 cell
425.283.4642 fax
kevin.hancock@legacyg.com
Please visit our new website at www.hancockmortgageteam.com
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