Don't let real estate industry jargon scare you from becoming a homeowner. I can help you become knowledgeable about the process. Call me at 919-614-0752 and I will provide you with all the info you will need to move forward.
Let's talk about "escrow". To complete the sale of a house, a neutral, third party (the escrow agent sometimes called the closing attorney, title company or closing agent) is employed to assure the transaction will close properly and on time. Escrow agents hold money for "safe-keeping" in an exchange 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, signing forms, obtaining the documents for loans and liens, and making sure you get a clean title to the house before your purchase gets finalized are all part of the job of the escrow holder.
These are the records that escrow holders usually compile:
- 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
- Loan documents
Upon completion of all portions of the escrow, closing can take place. At this time, all payments and dues for inspections, title insurance and real estate commissions are collected. Title to the home is then given to you as new homeowner and correct title insurance is issued as noted in the escrow instructions.
When closing is in it's last step, you'll make a payment to the escrow holder. I'll keep you informed on the procedure.
The Escrow Holder Will:
The Escrow Holder Won't:
- Write escrow instructions
- Request title search
- Comply with the bank's requirements as specified in the escrow agreement
- Intake funds from the buyer
- Prorate interest, insurance, tax 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 have been met
- Disburse payments and finalize instructions
- Advise you - the escrow agent stays at an impartial, 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. 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 how to close on your future home. And, you can be a better informed home buyer and future homeowner.
Looking to Buy?
Are you looking to buy a house? Let us help you. Just fill out as much of the information below that you want and we'll get right back to you, with no obligation to you. We guarantee your privacy.