Purchasing real estate for the first time can be intimidating. Let me help you.
and I'll help you become a well-informed buyer.
Buying Your Next Property: Closing
First, a little about "escrow". To finish the sale of a house, a neutral, third party (the escrow company) is employed to assure the transaction will close appropriately 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 an Internet auction, PayPal is the secure third party that obtains the buyer's payment, and then disburses the money to the seller.
The escrow company makes sure that the terms and conditions of the agreement between the two parties are completed in preparation of the sale being completed.
Escrow agents want to obtain the following documents:
- 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
You're ready to close when each step of the finished in escrow process.
All expenses like title insurance, inspections and real estate commissions are paid.
Title to the house is then transferred to you as buyer and correct title insurance is issued as noted in the escrow policy.
At the close of escrow, payment of funds shall be made in an acceptable form to the escrow.
I'll keep you up-to-date on the procedure.
The Escrow Holder Will:
The Escrow Holder Won't:
- Write escrow guidelines
- Request title research
- Comply with the bank's requirements as specified in the escrow agreement
- Receive payments from the buyer
- Prorate tax, interest, insurance and other fees according to guidelines
- Record deeds and other documents as instructed
- Request title insurance policy
- Close escrow when all terms of agreement of seller and buyer are complete
- Disburse payments and finish instructions
- Advise you - the escrow company stays at an impartial, third-party status
- Dispense opinions about future tax estimations
Mortgage Escrow Account
A Mortgage Escrow Account is used to make payments for rolling fees while there is a loan on the house.
Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.
Once you're familiar with the escrow process, you can be a more assured buyer.