The Place is Almost Yours
Escrow: An escrow company is hired to assure your place closes on time and the process goes smoothly.
Escrow companies hold money for "safe-keeping" in transactions between a buyer and seller.
A simple way to think of what an escrow company does is to think of the use of PayPal for online purchases.
Settling the last details like obtaining funds, finishing forms, securing the documents for loans and liens, and making sure you get a clear title to the house in preparation of your purchase gets finalized are all part of the job of the escrow agent.
The records the escrow company may collect include:
- 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
- Loan documents
- Tax statements
You're ready to close when all parts are finished in escrow process.
All expenses like title insurance, inspections and real estate commissions are paid.
The property's title is given to you and title insurance is issued per the steps of your individual escrow agreement.
The escrow company gets a payment at the completion of closing.
I'll keep you up-to-date on the next steps.
The Escrow Holder Will:
The Escrow Holder Won't:
- Assemble escrow instructions
- Petition title research
- Meet the bank's guidelines as specified in the escrow agreement
- Accept payments from the buyer
- Prorate tax, interest, insurance and other fees according to guidelines
- Record deeds and other paperwork as instructed
- Obtain title insurance policy
- Close escrow when all terms of agreement of seller and buyer have been finished
- Disburse monies and finalize instructions
- Give advice - the escrow company stays a neutral, third-party status
- Dispense opinions about future tax estimations
Mortgage Escrow Account
Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house.
Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.
This is a easy to understand guide about the escrow process. Your particular methods might vary based on your lender and your escrow agent.