The House is Almost Yours
Settling the last details like taking in funds, signing forms, getting the documents for loans and liens, and making sure you get a clear title to the property before your purchase gets finalized are all parts of closing in which an escrow company is useful.
Escrow agents want to obtain the following records:
- 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
Closing on the home happens when the steps of the escrow are finished. All payments owed and fees are collected and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). You'll then secure the title to the home and the title insurance gets dispersed as stated in the escrow instructions.
The escrow company receives a payment when the closing is complete. You'll know when it's time to submit the form of payment.
The Escrow Holder Will:
- Prepare escrow guidelines
- Petition title inquiry
- Comply with the bank's guidelines as noted in the escrow agreement
- Accept funds from the buyer
- Prorate interest, insurance, tax and other payments according to instructions
- Record deeds and other legal documents as instructed
- Obtain title insurance policy
- Close escrow when all instructions of seller and buyer are met
- Disburse monies and finish instructions
The Escrow Holder Will Not:
- Offer advice - the escrow holder stays at an impartial, third-party status
- Give insight about tax implications
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The Escrow Holder Will:
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The Escrow Holder Won't:
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Mortgage Escrow Account
Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.
Once you have the rules of the escrow process down, you can be a more assured buyer.
