Whether it's your first place or your next place, I'll walk you through the process.
E-mail me at email@example.com
I'll Champion for You Through Closing
Let's talk about "escrow". To finish the sale of a house, a neutral, third party (the escrow holder) is engaged to assure the transaction will close properly and on time.
A property is said to be in escrow when in the closing transaction, payment is held by a third party on behalf of two parties (in this case, a buyer and a seller) when the transaction is taking place.
An everyday way to understand what an escrow company does is to compare it to PayPal for online purchases.
Clearing the final hurdles like receiving funds, finishing forms, securing the documents for loans and liens, and making sure you get a clean title to the property prior to your purchase gets finalized are all part of the job of the escrow agent.
These are the records that escrow companies usually look for:
- Tax statements
- Fire and other insurance policies
- Title insurance policies
- Terms of sale and any seller-assisted financing
- Requests for payment for various services to be paid out of escrow funds
- Loan documents
Closing on the house happens when the steps of the escrow are complete.
At this time, all payments and fees for inspections, title insurance and real estate commissions are collected.
You'll then obtain the title to the house and the title insurance gets issued as outlined in the escrow instructions.
When closing is finished, you'll submit a payment to the escrow company.
You'll know when it's time to submit the form of payment.
The Escrow Holder Will:
The Escrow Holder Won't:
- Prepare escrow guidelines
- Request title search
- Meet the bank's standards as specified in the escrow agreement
- Accept payments from the buyer
- Prorate tax, interest, insurance and other fees according to instructions
- Record deeds and other legal documents as instructed
- Request title insurance policy
- Close escrow when all terms of agreement of seller and buyer are met
- Disburse payments and finalize instructions
- Advise you - the escrow company has to remain an impartial, third-party status
- Give insight about tax implications
Mortgage Escrow Account
Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house.
Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.
Now you know more about how to close on your future home. And, you can be a smarter home buyer and future homeowner.
Looking to Buy?
Are you looking to buy a house? Let us help you. Just fill out as much of the information below that you want and we'll get right back to you, with no obligation to you. We guarantee your privacy.