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I'll Champion for You Through Closing
Escrow: An escrow holder is used to assure your place closes on time and the transaction goes smoothly.
When money is held by a third party in a transaction between a buyer and a seller, it's in escrow.
An everyday way to think of what an escrow company does is to compare it to PayPal for online purchases.
Tying up any loose ends like obtaining funds, signing forms, getting the documents for loans and liens, and making sure you get a spotless title to the home in preparation of your purchase gets finalized are all parts of closing in which an escrow holder is useful.
Escrow agents collect the following legal documents:
- Loan documents
- Tax statements
- Fire and other insurance policies
- Title insurance policies
- Terms of sale and any seller-assisted financing
- Requests for payment for various services to be paid out of escrow funds
Closing on the home happens when the steps of the escrow are finished.
All expenses like title insurance, inspections and real estate commissions are paid.
Title to the property is then transferred to you as now current homeowner and related title insurance is issued as outlined in the escrow policy.
The escrow agent gets a payment when the closing is complete.
You'll know when it's time to submit the form of payment.
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The Escrow Holder Will: |
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The Escrow Holder Won't: |
- Assemble escrow instructions
- Perform a title inquiry
- Meet lender's guidelines as written in the escrow agreement
- Receive payments from the buyer
- Prorate tax, interest, insurance and other fees according to instructions
- Record deeds and other legal documents as instructed
- Request title insurance policy
- Close escrow when all terms of agreement of seller and buyer have been finished
- Disburse payments and finish instructions
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- Offer advice - the escrow company stays a neutral, third-party status
- Offer opinions about the outcome of your taxes
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Mortgage Escrow Account
A Mortgage Escrow Account is used to make payments for recurring fees while there is a loan on the house.
Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.
Now you know more about how to close on your future home. And, you can be a better informed home buyer and future homeowner.