Whether it's your first property or your next place, We'll educate you through the process.
and we'll make sure you're a empowered buyer.
First-Time Home Buying: Closing
First, a little about "escrow". To finalize the sale of a place, a neutral, third party (the escrow holder) is brought into the picture to assure the transaction will close correctly and on time.
When funds are held by a third party in a transaction between a buyer and a seller, it's in escrow.
For example, in a Web purchase, PayPal is the reliable third party that obtains the buyer's cash, and then disburses the payment to the seller.
The escrow company makes sure that the terms and conditions of the agreement between the sellers and the buyers are reached in preparation of the sale being finalized.
The records the escrow agent may obtain include:
- 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
Upon finishing of all instructions of the escrow, closing can take place.
All expenses like title insurance, inspections and real estate commissions are paid.
The house's title goes to you and title insurance is issued per the policies of your particular escrow process.
When closing is done, you'll submit a payment to the escrow agent.
We'll keep you up-to-date on what comes next.
The Escrow Holder Will:
The Escrow Holder Won't:
- Assemble escrow guidelines
- Petition title inquiry
- Comply with lender's standards as specified 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
- Obtain title insurance policy
- Close escrow when all terms of agreement of seller and buyer are complete
- Disburse funds and finalize instructions
- Advise you - the escrow company must stay at a fair, third-party status
- Give insight 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.
Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.
Once you have the rules of the escrow process down, you can be a informed buyer.