Whether it's your first house or your next house, I'll educate you through the process. E-mail me at lesliescottrealty@att.net to get some free information.

First-Time Home Buying: Closing

 Leslie Scott Realty, LLC can walk you through closing - 9183489250
First, a little about "escrow". An escrow company is brought on to assure your property closes on time and the closing process goes smoothly. Escrow agents hold money for "safe-keeping" in an exchange between a buyer and seller. For example, in an Internet purchase, PayPal is the reliable third party that holds the buyer's money, and then hands over the payment to the seller.

Settling the last details like receiving funds, signing forms, obtaining the documents for loans and liens, and assuring you get a clean title to the house in preparation of your purchase gets finalized are all parts of closing in which an escrow holder is useful.

The pieces of paperwork the escrow holder may obtain 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

You're ready to close when every step is complete in escrow process. At this time, all payments and dues for inspections, title insurance and real estate commissions are taken. Title to the home is then transferred to you as new owner and related title insurance is issued as outlined in the escrow policy.

The escrow holder receives a payment at the completion of closing. I'll keep you up-to-date on what comes next.

The Escrow Holder Will:

  • Assemble escrow guidelines
  • Perform a title inquiry
  • Comply with the bank's standards as specified in the escrow agreement
  • Intake payments from the buyer
  • Prorate interest, insurance, tax and other payments according to instructions
  • Record deeds and other legal documents as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer have been finished
  • Disburse monies and finalize instructions

The Escrow Holder Won't:

  • Offer advice - the escrow company stays at an impartial, third-party status
  • Dispense opinions about the outcome of your taxes
The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow guidelines
  • Petition title inquiry
  • Comply with lender's standards as specified in the escrow agreement
  • Receive payments from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • Record deeds and other paperwork as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer have been finished
  • Disburse funds and finalize instructions
  • Advise you - the escrow company must stay at a fair, 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. 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 being in escrow. And, you can be a better informed home buyer and future homeowner.


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