Things to Know About Escrow in Tucumcari, New Mexico

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First-Time Home Buying: Closing

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Escrow: When you're closing on your new place, a neutral, third party (known as the escrow holder or the escrow agent) is used to insure the process will close without problems and in a specific time frame. A place is said to be in escrow when in the closing transaction, funds is held by a third party on behalf of a buyer and a seller when the exchange of money takes place. For example, in an online auction, PayPal is the neutral third party that obtains the buyer's funds, and then hands over the funds to the seller.

The escrow company makes sure that the terms and conditions of the agreement between the seller and buyer are reached prior to the sale being completed.

The records the escrow agent may obtain include:

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 debts and fees are collected and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the home is then transferred to you as new owner and related title insurance is issued as outlined in the escrow policy.

At the close of escrow, payment of funds shall be 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:

Write escrow instructions
Perform a title search
Meet lender's requirements as written in the escrow agreement
Receive payments from the buyer
Prorate tax, interest, insurance and other fees according to guidelines
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 funds and finalize instructions

The Escrow Holder Won't:

Give advice - the escrow agent stays at an impartial, third-party status
Give insight about the outcome of your taxes

The Escrow Holder Will:		The Escrow Holder Won't:
Assemble escrow guidelines Petition title research Meet the bank's guidelines 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 Obtain title insurance policy Close escrow when all instructions of seller and buyer are complete Disburse monies and finalize instructions		Give advice - the escrow holder stays at an impartial, third-party status Dispense opinions about future tax estimations

Mortgage Escrow Account

A Mortgage Escrow Account is established to make payments for rolling fees while there is a loan on the house. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

This is a quick run-down of the escrow process. Your individual process might vary based on your lender and your escrow company.

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