Whether it's your first home or your next property, I'll educate you through the process. Contact me and I'll help you become a empowered buyer.

First-Time Home Buying: How To Close on a Home

 Roxanne Mercer Real Estate can walk you through closing - (707) 318-8829
First, a little about "escrow". To close the sale of a home, a neutral, third party (the escrow holder) is employed to assure the transaction will close perfectly and on time. A place is said to be in escrow when in the closing process, money is secured by a third party on behalf of two parties (in this case, a buyer and a seller) when the exchange of money takes place. For example, in a Web auction, PayPal is the neutral third party that obtains the buyer's funds, and then hands over the funds to the seller.

The escrow company makes sure that the terms and conditions of the agreement between the two parties are performed prior to the sale being completed.

Escrow companies look for the following records:

  • 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
  • Fire and other insurance policies

You're ready to close when every step is complete in escrow process. At this time, all payments and dues for inspections, title insurance and real estate commissions are paid out. You'll then get the title to the house and the title insurance gets issued as outlined in the escrow instructions.

At the close of escrow, payments of funds are made in an acceptable form to the escrow. As your real estate agent, I'll inform you of the acceptable form of payment.

The Escrow Holder Will:

  • Write escrow instructions
  • Perform a title search
  • Comply with the bank's standards as outlined in the escrow agreement
  • Receive payments from the buyer
  • Prorate tax, interest, insurance and other fees according to instructions
  • Record deeds and other paperwork as instructed
  • Request title insurance policy
  • Close escrow when all instructions of seller and buyer have been met
  • Disburse monies and finish instructions

The Escrow Holder Will Not:

  • Advise you - the escrow agent has to remain an impartial, third-party status
  • Give insight about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow guidelines
  • Request title search
  • Comply with the bank's guidelines as written in the escrow agreement
  • Accept 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
  • Give advice - the escrow agent must maintain a neutral, third-party status
  • Give insight about future tax estimations

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

Once you're at ease with the escrow process, you can be a confident buyer.

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