Whether it's your first house or your next home, I'll help you through the process. Call me at (707) 869-9067.

Buying Your Next House: Closing

 RE/MAX  Full Spectrum - Roxanne Mercer can walk you through closing - (707) 869-9067
Let's talk about "escrow". An escrow holder is used to assure your place closes on time and the closing process goes smoothly. A home is said to be in escrow when in the closing process, money is held by a third party on behalf of a buyer and a seller when the transaction is taking place. An everyday way to think of what an escrow company does is to compare it to PayPal for online purchases.

The escrow company makes sure that all terms and conditions of the seller's and buyer's agreement are performed prior to the sale being finished. This includes getting funds and certificates, finishing required forms, and obtaining the release documents for any loans or liens that have been paid off with the transaction, assuring you have a clean title to your house before the purchase price is fully paid.

The pieces of paperwork the escrow holder may obtain include:

  • 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

Upon finishing of all portions of the escrow, closing can take place. All expenses like title insurance, inspections and real estate commissions are paid. Title to the property is then transferred to you as buyer and correct title insurance is issued as outlined in the escrow policy.

The escrow holder receives a payment when the closing is complete. As your REALTOR, I'll inform you of the acceptable form of payment.

The Escrow Holder Will:

  • Prepare escrow instructions
  • Petition title inquiry
  • Meet lender's standards as written in the escrow agreement
  • Receive payments from the buyer
  • Prorate insurance, tax, interest and other payments 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 finish instructions

The Escrow Holder Will Not:

  • Advise you - the escrow agent must stay at a fair, third-party status
  • Give insight about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow guidelines
  • Perform a title inquiry
  • Meet lender's requirements as written in the escrow agreement
  • Accept payments from the buyer
  • Prorate interest, insurance, tax and other payments according to guidelines
  • Record deeds and other paperwork as instructed
  • Request title insurance policy
  • Close escrow when all instructions of seller and buyer are met
  • Disburse funds and finalize instructions
  • Advise you - the escrow agent must maintain a neutral, third-party status
  • Offer opinions about the outcome of your taxes

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.

Now you know more about how to close on your future home. And, you can be a better informed home buyer and future homeowner.

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