Things to Know About Escrow in Tucumcari, New Mexico

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What To Expect When You're Closing in Tucumcari, New Mexico

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Let's talk about "escrow". When you're closing on your new property, an escrow holder is used to guarantee the process will close appropriately and on time. When money is held by a third party in a transaction between a buyer and a seller, it's in escrow. An everyday way to think of what an escrow company does is to think of how you might use PayPal for Internet purchases.

Clearing the final hurdles like receiving funds, signing forms, obtaining the documents for loans and liens, and assuring you get a spotless title to the house prior to your purchase gets finalized are all part of the job of the escrow agent.

Escrow companies compile the following forms:

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 home happens when the steps of the escrow are done. All expenses like title insurance, inspections and real estate commissions are paid. Title to the home is then given to you as new owner and appropriate title insurance is issued as outlined in the escrow policy.

At the close of escrow, payments of funds are made in an acceptable form to the escrow. You'll know when it's time to submit the form of payment.

The Escrow Holder Will:

Prepare escrow guidelines
Perform a title inquiry
Meet the bank's guidelines as noted in the escrow agreement
Intake payments from the buyer
Prorate insurance, tax, interest and other payments according to guidelines
Record deeds and other legal documents as instructed
Request title insurance policy
Close escrow when all instructions of seller and buyer are complete
Disburse monies and finalize 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 instructions Petition title research Meet lender's requirements as noted in the escrow agreement Intake payments 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 instructions of seller and buyer are complete Disburse funds and finalize instructions		Offer advice - the escrow company must stay at a fair, third-party status Dispense opinions about future tax estimations

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.

Now you know more about how to close on your future home. And, you can be a better informed home buyer and future homeowner.

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