Things to Know About Escrow in Tucumcari, New Mexico

Buying real estate for the first time can be intimidating. I can help. Call me at 575 461-2100 and I'll give help you obtain the property you want.

What is Escrow?

McElroy & Associates can walk you through closing - 575 461-2100

Let's talk about "escrow". A neutral, third party (known as the escrow holder or the escrow agent) is hired to assure your place closes on time and the process goes smoothly. A place is said to be in escrow when in the closing transaction, funds is secured by a third party on behalf of two parties when the exchange of money takes place. For example, in an online purchase, PayPal is the secure third party that holds the buyer's cash, and then sends the money to the seller.

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

Escrow agents want to acquire the following pieces of paperwork:

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

Upon completion of all portions of the escrow, closing can take place. All outstanding payments and fees are collected and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). You'll then receive the title to the home and the title insurance gets issued as outlined in the escrow instructions.

When closing is completely finished, you'll pay the fees to the escrow company. As your REALTOR, I'll let you know what is an acceptable form of payment.

The Escrow Holder Will:

Prepare escrow guidelines
Request title search
Comply with lender's standards as outlined in the escrow agreement
Intake funds from the buyer
Prorate tax, interest, insurance and other fees according to instructions
Record deeds and other legal documents as instructed
Request title insurance policy
Close escrow when all terms of agreement of seller and buyer are met
Disburse funds and finalize instructions

The Escrow Holder Won't:

Offer advice - the escrow agent must stay at a fair, third-party status
Dispense opinions about the outcome of your taxes

The Escrow Holder Will:		The Escrow Holder Won't:
Assemble escrow instructions Request title research Comply with lender's guidelines as outlined in the escrow agreement Receive funds 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 have been met Disburse monies and finalize instructions		Offer advice - the escrow company must stay at a fair, third-party status Offer opinions about future tax estimations

Mortgage Escrow Account

A Mortgage Escrow Account is established to make payments for on-going expenses while there is a loan on the house. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.

Once you have the basics of the escrow process down, you can be a informed buyer.

Looking to Buy?

Are you looking to buy a house? Let us help you. Just fill out as much of the information below that you want and we'll get right back to you, with no obligation to you. We guarantee your privacy.

Your Information

* Name:

* Email:

Phone:

Street Address:

City:

State:

Country:

Zip/Postal Code:

Some Details

When Are You Moving?:

Where Are You Moving:

Your Price Range?:

Number of Bedrooms?:

Number of Bathrooms?:

Size In Square Feet?:

Any Comments, Concerns, Or Questions:

SMS Messaging:

By checking the box, you agree that McElroy & Associates may call/text you about your inquiry, which may involve use of automated means and prerecorded/artificial voices.. Message/data rates may apply.