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

Purchasing real estate for the first time can be overwhelming. Let me help you. E-mail me at advice@myroxanne.com to get some free information.

Escrow 101

Roxanne Mercer Real Estate can walk you through closing - 7073188829

Escrow: To close the sale of a property, a neutral, third party (the escrow company) is engaged to assure the process will close perfectly and on time. A house is said to be in escrow when in the closing process, payment is held 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 purchase, PayPal is the neutral third party that obtains the buyer's cash, and then disburses the money to the seller.

The escrow agent makes sure that the terms and conditions of the agreement between the sellers and the buyers are completed in preparation of the sale being finished.

Escrow holders compile the following documents:

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. You'll then secure the title to the house and the title insurance gets dispersed as noted in the escrow instructions.

When closing is finished, you'll pay the fees to the escrow company. I'll keep you updated on what comes next.

The Escrow Holder Will:

Write escrow instructions
Perform a title research
Meet lender's standards as outlined in the escrow agreement
Intake funds from the buyer
Prorate insurance, tax, interest and other payments according to instructions
Record deeds and other paperwork as instructed
Obtain title insurance policy
Close escrow when all instructions of seller and buyer have been finished
Disburse payments and finalize instructions

The Escrow Holder Won't:

Offer advice - the escrow company stays at an impartial, third-party status
Offer opinions about tax implications

The Escrow Holder Will:		The Escrow Holder Won't:
Write escrow guidelines Petition title inquiry Meet lender's requirements as written in the escrow agreement Intake funds 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 have been finished Disburse payments and finalize instructions		Tell you what's best - the escrow holder has to remain an impartial, third-party status Offer opinions about the outcome of your taxes

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your 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.

Once you're comfortable with the escrow process, you can be a better buyer.

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