Whether it's your first property or your next home, I'll walk you through the process.
Contact me and I'll make sure you're a confident buyer.
Completing the Transaction
To finalize the sale of a home, a neutral, third party (the escrow holder) is brought into the picture to assure the process will close correctly and on time.
When payment is held by a third party in a transaction between a buyer and a seller, it's in escrow.
A simple way to understand what an escrow company does is to compare it to PayPal for Internet purchases.
The escrow company makes sure that the terms and conditions of the agreement between the sellers and the buyers are completed in preparation of the sale being finished.
These are the pieces of paperwork that escrow agents usually look to collect:
- 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
- Title insurance policies
Upon finishing of all portions of the escrow, closing can take place.
All expenses like title insurance, inspections and real estate commissions are paid.
The house's title gets transferred to you and title insurance begins per the policies of your particular escrow agreement.
When closing is in it's last step, you'll pay the fees to the escrow agent.
I'll keep you up-to-date on the procedure.
The Escrow Holder Will:
The Escrow Holder Won't:
- Write escrow guidelines
- Perform a title inquiry
- Comply with lender's standards as outlined in the escrow agreement
- Accept payments from the buyer
- Prorate tax, interest, insurance and other fees 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 finalize instructions
- Give advice - the escrow agent must stay at a fair, third-party status
- Give insight about the outcome of your taxes
Mortgage Escrow Account
Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created.
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 better informed home buyer and future homeowner.