Can you go escrow without a loan?

You didn't tell us what state this was in...In California terminology is different than say for instance in Massachusetts, so it may just be confusion in terminology.

But, Escrow just means a nuetral account where funds are held. This could be earnest / deposit money in escrow.

More traditionally, escrow is a term used for partial Tax and Insurance payments to the lender, who will then disburse a full payment to the proper agency at a later time; the funds in the mean time are held 'in escrow'. And you can not to my knowledge put funds in escrow before the loan is in place under these circumstances, without the sellers agreement, which most sellers don't give without some type of loan pre-approval documentation.

Also, I can only think of one type of program, at today's interest rates, that would allow him to make $2,300 / mo payments on a $500k house...but that's not even for purchases (assuming it's 100% financing of course)...I know some purchase programs that would come close, but not quite...have him call me if he wants.

In the end, sounds like he's trying to make himself feel good...

I am a Mortgage Broker.

You can start an escrow if you want to. It will still cost the same even if not completed.

The seller must have accepted his offer even though they did not provide a prequalification document that shows they are qualified to purchase the house at that price. There is no requirements for accepting an offer except what the seller specifies and many (usually all in today’s market) require at least a prequalification document that shows the buyer is able to purchase.

I think because your friend is your friend, you should give him the benefit of the doubt. He can be getting a $500K house for payments under $2300/month depending on the down payment. Also, with an Interest Only option, the payments are really possible with the right down payment and good credit.

If I can be of assistance, please advise.

Regards,

Ben Berks

The Mortgage Factor

661-257-7690

661-554-7690 FAX

ben@themortgagefactor.com

Oh heck yea it can!!!! Escrow is opened when the seller and buyer agree on the terms of the contract....not when the loan is approved....the loan can go through many different sources before actually funding/recording and closing. Escrow is not dependent on a loan, you still need escrow when you pay cash for a house....

Matter of fact...I, personally, get a lot of loans given to ME because a buyer is already IN escrow and the broker they are currently with can't close the loan..so they come to me, and viola, my turn time is about 6-8 days...and I close it for them. The last two deals I closed were take over loans like that because others didn't have what it took.

Now..if your friend wants a loan...have them contact me. I'll make sure they have one by the time they need to close escrow..given their credit is worthy of it.

you may desire to call the lender and talk it with them. they might desire to have rules in place that govern this occasion. Why are you changing your innovations so commonly? A loan is a serious criminal duty and what you're doing is unusual. maximum folk stay with the contract as initially written. maximum loans require that the valuables taxes and the coverage be escrowed whilst the shopper has a small down fee. in case you have over 20% of the cost of the valuables invested then it particularly is totally conceivable the lender will artwork with you, yet be valuable this time.

Your friend is telling the truth. You can open escrow with a simple purchase contract or a piece of paper that states that Joe Blow promises to sell Jane Smith his residence at 123 Main St for some x amount of money.

Regards