Whether it's your first house or your next property, I'll advise you through the process.
Escrow: A neutral, third party (known as the escrow holder or the escrow agent) is used to assure your property closes on time and the closing process goes smoothly.
Escrow agents hold money for "safe-keeping" in an exchange between a buyer and seller.
For example, in a Web transaction, PayPal is the neutral third party that holds the buyer's cash, and then hands over the funds to the seller.
Settling the last details like receiving funds, completing forms, obtaining the documents for loans and liens, and making sure you get a clean title to the property in preparation of your purchase gets finalized are all parts of closing in which an escrow agent is useful.
The certificates the escrow holder may secure include:
- 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
- Tax statements
- Fire and other insurance policies
Closing on the home takes place when the steps of the escrow are finished.
At this time, all payments and dues for inspections, title insurance and real estate commissions are collected.
The home's title is given to you and title insurance is issued per the policies of your particular escrow agreement.
The escrow holder receives a payment when the closing is complete.
As your REALTOR, I'll inform you of the acceptable form of payment.
The Escrow Holder Will:
The Escrow Holder Won't:
- Write escrow instructions
- Request title research
- Comply with lender's requirements as specified in the escrow agreement
- Intake payments from the buyer
- Prorate insurance, tax, interest and other payments according to instructions
- Record deeds and other paperwork as instructed
- Request title insurance policy
- Close escrow when all instructions of seller and buyer are met
- Disburse funds and finish instructions
- Give advice - the escrow holder 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.
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 how to close on your future home. And, you can be a more confident home buyer and future homeowner.
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