The process of buying real estate for the first time can be confusing. Let us help you.
Call us at (972) 476-6706 and we'll give you more information.
First, a little about "escrow". To finalize the sale of a property, a neutral, third party (the escrow holder) is employed to assure the transaction will close perfectly and on time.
A property is said to be in escrow when in the closing transaction, money is secured by a third party on behalf of two parties (in this case, a buyer and a seller) when the exchange of money takes place.
PayPal is a good example of an escrow company.
Clearing the final hurdles like obtaining funds, completing forms, getting the documents for loans and liens, and assuring you get a spotless title to the property before your purchase gets finalized are all part of the job of the escrow agent.
These are the legal forms that escrow agents usually compile:
- 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
- Tax statements
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.
The house's title gets transferred to you and title insurance begins per the steps of your particular escrow agreement.
At the close of escrow, in an acceptable form to the escrow.
As your real estate agents, we'll inform you of the acceptable way of paying.
The Escrow Holder Will:
The Escrow Holder Won't:
- Prepare escrow guidelines
- Petition title research
- Comply with lender's guidelines as noted in the escrow agreement
- Intake funds from the buyer
- Prorate interest, insurance, tax and other payments 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 finished
- Disburse payments and finalize instructions
- Give advice - the escrow holder stays at an impartial, third-party status
- Dispense 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.
Now you know more about how to close on your future home. And, you can be a smarter home buyer and future homeowner.