Whether it's your first house or your next home, We'll help you through the process. Contact us and we'll help you become a well-informed buyer.
Using an Escrow Agent
To close the sale of a home, a neutral, third party (the escrow agent) is engaged to assure the transaction will close appropriately and on time. When money is held by a third party in a transaction between a buyer and a seller, it's in escrow. For example, in an online transaction, PayPal is the secure third party that obtains the buyer's payment, and then hands over the payment to the seller.
Tying up any loose ends like obtaining funds, finishing forms, securing the documents for loans and liens, and assuring you get a clear title to the house prior to your purchase gets finalized are all parts of closing in which an escrow company is useful.
Escrow companies look for the following legal 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
- Loan documents
Closing on the house happens when all of the procedures of the escrow are complete. All payments owed and fees are collected and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). You'll then receive the title to the property and the title insurance gets dispersed as agreed upon in the escrow instructions.
The escrow company receives a payment at the completion of closing. We'll keep you updated on the next steps.
The Escrow Holder Will:
The Escrow Holder Won't:
Mortgage Escrow Account
A Mortgage Escrow Account is started to make payments for recurring fees while there is a loan on the house. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.
Now you know more about being in escrow. And, you can be a more informed home buyer and future homeowner.