Things to Know About Escrow in Tucumcari, New Mexico

Whether it's your first property or your next home, I'll walk you through the process. Contact me and I'll make sure you're a confident buyer.

Buying Your Next Property: Closing

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Let's talk about "escrow". When you're closing on your new home, a neutral, third party (known as the escrow holder or the escrow agent) is used to ensure the transaction will close properly and on time. A house is said to be in escrow when in the closing process, payment is secured by a third party on behalf of two parties when the transaction is taking place. PayPal is a good way to picture an escrow company.

The escrow holder insures that all terms and conditions of the seller's and buyer's agreement are reached prior to the sale being completed. This includes securing payments and paperwork, filling out required forms, and getting the release documents for any loans or liens that were paid off with the transaction, assuring you have a clean title to your house before the purchase price is fully paid.

Escrow companies collect the following documents:

Loan documents
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

You're ready to close when every step is done in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. Title to the house is then transferred to you as new owner and appropriate title insurance is issued as outlined in the escrow policy.

When closing is done, you'll submit a payment to the escrow holder. You'll know when it's time to submit the form of payment.

The Escrow Holder Will:

Write escrow guidelines
Perform a title inquiry
Meet lender's guidelines as written in the escrow agreement
Accept payments 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 have been finished
Disburse funds and finish instructions

The Escrow Holder Will Not:

Tell you what's best - the escrow holder has to remain an impartial, third-party status
Dispense opinions about the outcome of your taxes

The Escrow Holder Will:		The Escrow Holder Won't:
Prepare escrow guidelines Request title inquiry Meet the bank's standards as written in the escrow agreement Accept payments from the buyer Prorate interest, insurance, tax and other payments according to instructions Record deeds and other paperwork as instructed Obtain title insurance policy Close escrow when all instructions of seller and buyer have been finished Disburse monies and finalize instructions		Give advice - the escrow holder has to remain an impartial, third-party status Give insight about future tax estimations

Mortgage Escrow Account

A Mortgage Escrow Account is started to pay rolling expenses while there is a loan on the house. 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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