Don't let the unknown scare you from becoming a homeowner. I can help you understand the process. E-mail me at carlisamsmith@gmail.com .

First-Time Home Buying: How To Close on a Place

 J. Briann Realty Group, Inc. can walk you through closing - 561-688-1316
Escrow: To close the sale of a house, a neutral, third party (the escrow company) is brought into the picture to assure the transaction will close perfectly and on time. A place is said to be in escrow when in the closing transaction, funds is secured by a third party on behalf of a buyer and a seller when the transaction is taking place. A simple way to think of what an escrow company does is to think of the use of PayPal for Internet purchases.

The escrow agent makes sure that all terms and conditions of the seller's and buyer's agreement are reached prior to the sale being completed. This includes receiving payments and certificates, completing required forms, and getting the release documents for any loans or liens that were cleared with the transaction, assuring you have a clear title to your property before the purchase price is fully paid.

The pieces of paperwork the escrow agent may obtain include:

  • 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 all of the procedures of the escrow are complete. At this time, all payments and dues for inspections, title insurance and real estate commissions are taken. The property's title gets handed over to you and title insurance begins per the policies of your particular escrow agreement.

At the close of escrow, in an acceptable form to the escrow. As your real estate agent, I'll inform you of the acceptable form of payment.

The Escrow Holder Will:

  • Assemble escrow instructions
  • Petition title research
  • Meet the bank's guidelines as written in the escrow agreement
  • Receive payments from the buyer
  • Prorate tax, interest, insurance and other fees according to guidelines
  • 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 payments and finish instructions

The Escrow Holder Will Not:

  • Tell you what's best - the escrow agent has to remain an impartial, third-party status
  • Offer opinions about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow guidelines
  • Request title research
  • Comply with lender's guidelines as outlined in the escrow agreement
  • Receive 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 instructions of seller and buyer have been met
  • Disburse monies and finish instructions
  • Offer advice - the escrow agent stays at an impartial, third-party status
  • Give insight about future tax estimations

Mortgage Escrow Account

A Mortgage Escrow Account is used to pay recurring fees while there is a loan on the house. 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.

Once you have the basics of the escrow process down, you can be a informed buyer.

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