Settling the last details like receiving funds, signing forms, obtaining the documents for loans and liens, and making sure you a clear title to the house prior to your purchase gets finalized are all parts of closing in which an escrow company is useful.
These are the legal forms that escrow agents usually compile:
- 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
Closing on the house takes place when the steps of the escrow are finished. All payments owed and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). The property's title gets handed over to you and title insurance is issued per the policies of your particular escrow process.
When closing is completely finished, you'll submit a payment to the escrow company. As your real estate agent, I'll inform you of the acceptable way of paying.
The Escrow Holder Will:
The Escrow Holder Won't:
- Assemble escrow guidelines
- Perform a title inquiry
- Comply with the bank's requirements as written in the escrow agreement
- Accept funds from the buyer
- Prorate insurance, tax, interest and other payments according to instructions
- Record deeds and other paperwork as instructed
- Request title insurance policy
- Close escrow when all terms of agreement of seller and buyer have been met
- Disburse payments and finish instructions
- Tell you what's best - the escrow holder stays a neutral, third-party status
- Give insight 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 more confident home buyer and future homeowner.