Whether it's your first home or your next place, I'll educate you through the process.
Contact me and I'll make sure you're a well-informed buyer.
First-Time Home Buying: Closing
Let's talk about "escrow". When you're closing on your new place, an escrow agent is used to guarantee the process will close appropriately and on time.
A home is said to be in escrow when in the closing process, money is secured by a third party on behalf of two parties when the transaction is taking place.
PayPal is a simple way to think of an escrow company.
The escrow holder makes sure that the terms and conditions of the agreement between the seller and buyer are met prior to the sale being finalized.
These are the documents that escrow agents usually look to collect:
- Requests for payment for various services to be paid out of escrow funds
- Loan documents
- Tax statements
- Fire and other insurance policies
- Title insurance policies
- Terms of sale and any seller-assisted financing
Closing on the home happens when the steps of the escrow are complete.
All payments owed and fees are taken and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions).
You'll then receive the title to the home and the title insurance gets dispersed as outlined in the escrow instructions.
When closing is completely finished, you'll make a payment to the escrow agent.
As your REALTOR, I'll inform you of the acceptable way of paying.
|
The Escrow Holder Will: |
|
The Escrow Holder Won't: |
- Prepare escrow instructions
- Perform a title inquiry
- Meet the bank's requirements as noted in the escrow agreement
- Receive funds from the buyer
- Prorate tax, interest, insurance and other fees according to instructions
- Record deeds and other documents as instructed
- Request title insurance policy
- Close escrow when all instructions of seller and buyer have been finished
- Disburse funds and finish instructions
|
|
- Advise you - the escrow holder stays a neutral, third-party status
- Dispense opinions about the outcome of your taxes
|
Mortgage Escrow Account
A Mortgage Escrow Account is started to pay recurring fees while there is a loan on the house.
Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.
This is a quick run-down of the escrow process. Your specific plan may be different depending on your bank and your escrow holder.