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Steps to Closing on a Property
First, a little about "escrow". An escrow company is brought on to assure your home closes on time and the process goes smoothly. Escrow holders hold money for "safe-keeping" in transactions between a buyer and seller. For example, in a Web auction, PayPal is the secure third party that holds the buyer's cash, and then sends the money to the seller.
The escrow company makes sure that the terms and conditions of the agreement between the two parties are reached in preparation of the sale being finished.
Escrow agents look for the following forms:
- 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
Upon completion 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 handed over to you and title insurance is issued per the policies of your particular escrow process.
At the close of escrow, in an acceptable form to the escrow. 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 search
- Comply with lender's requirements as specified in the escrow agreement
- Intake payments from the buyer
- Prorate interest, insurance, tax and other payments 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 met
- Disburse monies and finish instructions
- Advise you - the escrow agent stays at an impartial, third-party status
- Give insight about the outcome of your taxes
Mortgage Escrow Account
A Mortgage Escrow Account is established to pay on-going fees while there is a loan on the 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 being in escrow. And, you can be a more informed home buyer and future homeowner.