Whether it's your first house or your next home, I'll educate you through the process. E-mail me at advice@myroxanne.com to get some free information.

Steps to Closing on a Property

 Roxanne Mercer Real Estate can walk you through closing - (707) 318-8829
First, a little about "escrow". When you're closing on your new home, an escrow agent is used to guarantee the process will close correctly and in a timely manner. Escrow agents hold money for "safe-keeping" in an exchange between a buyer and seller. An easy way to think of what an escrow company does is to think of the use of PayPal for Internet purchases.

Settling the last details like obtaining funds, signing forms, obtaining the documents for loans and liens, and making sure you get a spotless title to the property before your purchase gets finalized are all parts of closing in which an escrow holder is useful.

The certificates the escrow agent may secure include:

  • 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

You're ready to close when all parts are complete in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. The house's title is given to you and title insurance begins per the steps of your individual escrow agreement.

When closing is completed, you'll submit a payment to the escrow company. As your agent, I'll let you know what is an acceptable way of paying.

The Escrow Holder Will:

  • Write escrow guidelines
  • Request title search
  • Meet the bank's requirements as outlined in the escrow agreement
  • Receive funds from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • Record deeds and other legal documents as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer have been finished
  • Disburse monies and finalize instructions

The Escrow Holder Won't:

  • Offer advice - the escrow holder has to remain an impartial, third-party status
  • Dispense opinions about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow instructions
  • Request title inquiry
  • Meet the bank's guidelines 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 terms of agreement of seller and buyer have been met
  • Disburse funds and finish instructions
  • Advise you - the escrow company stays a neutral, third-party status
  • Dispense opinions 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.

This is a easy to understand guide about the escrow process. Your individual methods might be unique based on your lender and your escrow holder.

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