What Are Escrow Fees? - (707) 869-9067

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Escrow 101

Roxanne Mercer Real Estate can walk you through closing - 7073188829

Let's talk about "escrow". When you're closing on your new house, an escrow company is used to ensure the process will close properly and in a certain amount of time. Escrow agents hold money for "safe-keeping" in a deal between a buyer and seller. PayPal is a good example of an escrow company.

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

These are the legal forms that escrow companies usually look for:

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 instructions of the escrow, closing can take place. At this time, all payments and fees for inspections, title insurance and real estate commissions are taken. Title to the home is then transferred to you as new owner and correct title insurance is issued as outlined in the escrow policy.

The escrow agent gets a payment when the closing is complete. I'll keep you updated on what comes next.

The Escrow Holder Will:

Assemble escrow instructions
Petition title search
Comply with the bank's requirements as noted in the escrow agreement
Receive payments from the buyer
Prorate interest, insurance, tax and other payments according to instructions
Record deeds and other documents as instructed
Request title insurance policy
Close escrow when all instructions of seller and buyer have been met
Disburse monies and finalize instructions

The Escrow Holder Will Not:

Advise you - the escrow agent must stay at a fair, third-party status
Offer opinions about the outcome of your taxes

The Escrow Holder Will:		The Escrow Holder Won't:
Prepare escrow instructions Petition title research Meet lender's guidelines as specified in the escrow agreement Accept funds from the buyer Prorate tax, interest, insurance and other fees according to guidelines Record deeds and other legal documents as instructed Obtain title insurance policy Close escrow when all terms of agreement of seller and buyer are complete Disburse monies and finish instructions		Give advice - the escrow agent stays at an impartial, third-party status Give insight about future tax estimations

Mortgage Escrow Account

A Mortgage Escrow Account is used to make payments for on-going fees while there is a loan on the 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.

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