Whether it's your first property or your next home, We'll walk you through the process.
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opknox@opknoxre.com.
Buying Your Next Property: Closing
Let's talk about "escrow". To finish the sale of a home, a neutral, third party (the escrow agent) is employed to assure the transaction will close correctly and on time.
A home is said to be in escrow when in the closing process, funds is held by a third party on behalf of two parties when the transaction is taking place.
For example, in a Web transaction, PayPal is the secure third party that holds the buyer's payment, and then hands over the funds to the seller.
Tying up any loose ends like taking in funds, finishing forms, getting the documents for loans and liens, and assuring you get a clear title to the property prior to your purchase gets finalized are all parts of closing in which an escrow agent is useful.
Escrow companies collect the following documents:
- 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 completion of all instructions of the escrow, closing can take place.
All expenses like title insurance, inspections and real estate commissions are paid.
The home's title is given to you and title insurance begins per the steps of your particular escrow process.
The escrow company gets a payment at the completion of closing.
We'll keep you up-to-date on what comes next.
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The Escrow Holder Will: |
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The Escrow Holder Won't: |
- Write escrow instructions
- Petition title research
- Meet lender's standards as specified in the escrow agreement
- Intake funds 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 terms of agreement of seller and buyer are met
- Disburse monies and finalize instructions
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- Offer advice - the escrow company stays at an impartial, third-party status
- Dispense opinions about tax implications
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Mortgage Escrow Account
Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house.
Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.
This is a quick run-down of the escrow process. Your specific plan will be slightly different depending on your bank and your escrow agent.