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I'll Champion for You Through Closing
Escrow: An escrow company is used to assure your home closes on time and the closing process goes smoothly. Escrow holders hold money for "safe-keeping" in transactions between a buyer and seller. An easy way to think of what an escrow company does is to compare it to PayPal for Internet purchases.
The escrow agent insures that all terms and conditions of the seller's and buyer's contract are reached prior to the sale being completed. This includes receiving funds and paperwork, filling out required forms, and getting the release documents for any loans or liens that are to be paid with the transaction, assuring you have a free title to your house before the asking price is fully paid.
These are the records that escrow companies usually compile:
- 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 home happens when all of the procedures of the escrow are done. At this time, all payments and dues for inspections, title insurance and real estate commissions are taken. You'll then get the title to the property and the title insurance gets issued as outlined in the escrow instructions.
At the close of escrow, payments of funds are made in an acceptable form to the escrow. We'll keep you updated on what comes next.
The Escrow Holder Will:
The Escrow Holder Won't:
- Assemble escrow instructions
- Perform a title inquiry
- Meet the bank's guidelines as specified in the escrow agreement
- Intake payments from the buyer
- Prorate interest, insurance, tax and other payments according to guidelines
- Record deeds and other paperwork as instructed
- Obtain title insurance policy
- Close escrow when all instructions of seller and buyer are met
- Disburse funds and finish instructions
- Offer advice - the escrow agent stays at an impartial, third-party status
- Dispense opinions about tax implications
Mortgage Escrow Account
Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.
Now you know more about being in escrow. And, you can be a better informed home buyer and future homeowner.