When you’re closing on your new home, an escrow agent is used to make certain the transaction will close appropriately and in a certain amount of time. Escrow companies hold money for “safe-keeping” in a deal between a buyer and seller. PayPal is a simple way to think of an escrow company. The escrow company makes sure that the terms and conditions of the agreement between the two parties are met prior to the sale being completed.
These are the records that escrow agents usually look to collect:Title insurance policies Terms of sale and any seller-assisted financing Requests for payment for various services to be paid out of escrow fundsLoan documents Tax statements Fire and other insurance policies Upon completion of all instructions of the escrow, closing can take place. All payments owed and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). You’ll then get the title to the property and the title insurance gets issued as agreed upon in the escrow instructions. At the close of escrow, in an acceptable form to the escrow. As your agent, I’ll inform you of the acceptable way of paying.
The Escrow Holder Will
- Write escrow guidelines
- Request title search Comply with the bank’s requirements as written in the escrow agreement
- Intake funds 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 terms of agreement of seller and buyer are complete
- Disburse monies and finish instructions
The Escrow Holder Won’t
- Advise you – the escrow company stays at an impartial, third-party status
- Dispense opinions about future tax estimations
Mortgage Escrow Account
Often, to pay recurring costs while there’s a loan on the house, a Mortgage Escrow Account is created. 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.Now you know more about how to close on your future home. And, you can be a more informed home buyer and future homeowner.
Purchasing a home for the first time can be confusing. Let me help you. Contact me and I’ll make sure you’re a confident buyer.