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

First-Time Home Buying: Closing

 Roxanne Mercer Real Estate can walk you through closing - (707) 318-8829
First, a little about "escrow". To complete the sale of a property, a neutral, third party (the escrow company) is brought into the picture to assure the transaction will close appropriately and on time. A home is said to be in escrow when in the closing process, payment is held by a third party on behalf of a buyer and a seller when the exchange of money takes place. PayPal is a good example of an escrow company.

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

Escrow holders look for the following records:

  • 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

Closing on the property happens when all of the procedures of the escrow are done. All expenses like title insurance, inspections and real estate commissions are paid. The property's title goes to you and title insurance is issued per the policies of your individual escrow process.

The escrow agent gets a payment at the completion of closing. As your real estate agent, I'll let you know what is an acceptable way of paying.

The Escrow Holder Will:

  • Assemble escrow guidelines
  • Petition title inquiry
  • Comply with lender's requirements as specified in the escrow agreement
  • Intake payments from the buyer
  • Prorate interest, insurance, tax and other payments 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 met
  • Disburse funds and finish instructions

The Escrow Holder Won't:

  • Give advice - the escrow company stays a neutral, third-party status
  • Dispense opinions about the outcome of your taxes
The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow guidelines
  • Perform a title research
  • Meet lender's standards as specified in the escrow agreement
  • Intake payments from the buyer
  • Prorate tax, interest, insurance and other fees according to guidelines
  • Record deeds and other paperwork as instructed
  • Request title insurance policy
  • Close escrow when all instructions of seller and buyer have been met
  • Disburse funds and finalize instructions
  • Tell you what's best - the escrow company has to remain an impartial, third-party status
  • Dispense opinions about the outcome of your taxes

Mortgage Escrow Account

A Mortgage Escrow Account is used to make payments for recurring 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.

This is a easy to understand guide about the escrow process. Your individual methods may be unique depending on your bank and your escrow company.

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