The process of buying a house for the first time can be confusing. I can help. E-mail me at jmcelroy47@gmail.com .

What To Expect When You're Closing in Tucumcari

 McElroy & Associates can walk you through closing - 575 461-2100
First, a little about "escrow". When you're closing on your new home, an escrow company is used to make certain the process will close appropriately and on time. Escrow companies hold money for "safe-keeping" in transactions between a buyer and seller. PayPal is a simple way to think of an escrow company.

The escrow agent is careful to assure that all terms and conditions of the seller's and buyer's contract are performed prior to the sale being finalized. This includes securing payments and records, filling out required forms, and seeking out the release documents for any loans or liens that are to be paid with the transaction, assuring you have a clean title to your home before the purchase price is fully paid.

These are the pieces of paperwork that escrow agents usually compile:

  • 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
  • Tax statements
  • Fire and other insurance policies

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. You'll then get the title to the house and the title insurance gets issued as agreed upon in the escrow instructions.

The escrow holder gets a payment when the closing is complete. As your agent, I'll inform you of the acceptable form of payment.

The Escrow Holder Will:

  • Assemble escrow instructions
  • Perform a title inquiry
  • Comply with the bank's guidelines as specified in the escrow agreement
  • Receive payments from the buyer
  • Prorate interest, insurance, tax and other payments according to instructions
  • Record deeds and other paperwork as instructed
  • Request title insurance policy
  • Close escrow when all terms of agreement of seller and buyer are complete
  • Disburse monies and finalize instructions

The Escrow Holder Won't:

  • Advise you - the escrow company stays at an impartial, third-party status
  • Offer opinions about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow guidelines
  • Petition title inquiry
  • Comply with the bank's requirements as written in the escrow agreement
  • Receive 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 instructions of seller and buyer are complete
  • Disburse funds and finish instructions
  • Offer advice - the escrow company must stay at a fair, third-party status
  • Dispense opinions about tax implications

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.

Now you know more about being in escrow. And, you can be a more confident home buyer and future homeowner.

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