Whether it's your first house or your next place, We'll walk you through the process.
and we'll make sure you're a well-informed buyer.
What is Escrow?
Escrow: When you're closing on your new place, an escrow agent is used to insure the process will close without problems and on time.
When money is held by a third party in a transaction between a buyer and a seller, it's in escrow.
PayPal is a good way to picture an escrow company.
The escrow company makes sure that the terms and conditions of the agreement between the two parties are reached in preparation of the sale being finalized.
The certificates the escrow holder may secure include:
- 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
- Fire and other insurance policies
- Title insurance policies
Upon finishing of all instructions of the escrow, closing can take place.
All debts and fees are collected and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions).
Title to the house is then given to you as buyer and related title insurance is issued as outlined in the escrow policy.
At the close of escrow, payments are submitted in an acceptable form to the escrow.
We'll keep you informed on the next steps.
The Escrow Holder Will:
The Escrow Holder Won't:
- Assemble escrow guidelines
- Petition title inquiry
- Meet lender's requirements as written in the escrow agreement
- Receive funds from the buyer
- Prorate tax, interest, insurance and other fees according to instructions
- Record deeds and other documents as instructed
- Obtain title insurance policy
- Close escrow when all terms of agreement of seller and buyer have been finished
- Disburse funds and finalize instructions
- Give advice - the escrow holder has to remain 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.
Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.
Once you have the ABCs of the escrow process down, you can be a more assured buyer.