I'll Champion for You Through Closing
Let's talk about "escrow". An escrow holder is brought on to assure your property closes on time and the closing process goes smoothly.
A property is said to be in escrow when in the closing process, payment is held by a third party on behalf of a buyer and a seller when the exchange of money takes place.
PayPal is a good example of an escrow company.
The escrow agent makes sure that the terms and conditions of the agreement between the two parties are performed prior to the sale being finalized.
Escrow companies want to acquire the following records:
- 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
- Terms of sale and any seller-assisted financing
Upon finishing of all portions of the escrow, closing can take place.
All expenses like title insurance, inspections and real estate commissions are paid.
You'll then secure the title to the property and the title insurance gets issued as outlined in the escrow instructions.
The escrow holder receives a payment when the closing is complete.
I'll keep you updated on the procedure.
The Escrow Holder Will:
The Escrow Holder Won't:
- Write escrow guidelines
- Perform a title research
- Meet lender's guidelines as noted in the escrow agreement
- Accept payments from the buyer
- Prorate insurance, tax, interest and other payments according to instructions
- Record deeds and other paperwork as instructed
- Obtain title insurance policy
- Close escrow when all terms of agreement of seller and buyer are complete
- Disburse payments and finish instructions
- Give advice - the escrow company must maintain a neutral, third-party status
- Give insight about tax implications
Mortgage Escrow Account
A Mortgage Escrow Account is established to make payments for rolling fees while there is a loan on the 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.
Once you're familiar with the escrow process, you can be a confident buyer.