Things to Know About Escrow in Tucumcari, New Mexico

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What To Expect When You're Closing in Tucumcari

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Escrow: To finalize the sale of a house, a neutral, third party (the escrow agent) is engaged to assure the transaction will close perfectly and on time. A house is said to be in escrow when in the closing process, money is held by a third party on behalf of a buyer and a seller when the exchange of money takes place. An easy way to understand the concept of what an escrow company does is to think of how you might use PayPal for online purchases.

The escrow agent makes sure that the terms and conditions of the agreement between the sellers and the buyers are met in preparation of the sale being finalized.

These are the records that escrow holders usually look to collect:

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 property takes place when the steps of the escrow are done. All debts and fees are taken and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the home is then given to you as now current homeowner and related title insurance is issued as outlined in the escrow instructions.

At the close of escrow, payments are submitted in an acceptable form to the escrow. I'll keep you informed on the procedure.

The Escrow Holder Will:

Write escrow guidelines
Request title inquiry
Meet lender's requirements as specified in the escrow agreement
Receive funds from the buyer
Prorate insurance, tax, interest and other payments according to guidelines
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

The Escrow Holder Won't:

Tell you what's best - the escrow agent has to remain an impartial, third-party status
Dispense opinions about future tax estimations

The Escrow Holder Will:		The Escrow Holder Won't:
Prepare escrow guidelines Request title research Comply with lender's standards as written in the escrow agreement Intake payments from the buyer Prorate tax, interest, insurance and other fees according to instructions Record deeds and other paperwork as instructed Obtain title insurance policy Close escrow when all terms of agreement of seller and buyer have been finished Disburse payments and finalize instructions		Advise you - the escrow agent must stay at a fair, third-party status Offer opinions about the outcome of your taxes

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're familiar with the escrow process, you can be a more assured buyer.

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