First-Time Home Buying: How To Close on a Property
The escrow company makes sure that the terms and conditions of the agreement between the sellers and the buyers are performed prior to the sale being finalized.
Escrow agents compile the following records:
Upon completion of all portions of the escrow, closing can take place. At this time, all payments and fees for inspections, title insurance and real estate commissions are collected. You'll then obtain the title to the property and the title insurance gets dispersed as stated in the escrow instructions.
The escrow agent receives a payment at the completion of closing. I'll keep you updated on the procedure.
The Escrow Holder Will:
- Assemble escrow instructions
- Request title research
- Meet lender's guidelines as noted in the escrow agreement
- Receive payments from the buyer
- Prorate tax, interest, insurance and other fees according to instructions
- 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
The Escrow Holder Will Not:
- Tell you what's best - the escrow holder has to remain an impartial, third-party status
- Give insight about future tax estimations
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The Escrow Holder Will:
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The Escrow Holder Won't:
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Mortgage Escrow Account
A Mortgage Escrow Account is started to make payments for recurring fees while there is a loan on the 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.
Once you're comfortable with the escrow process, you can be a informed buyer.
