Buying Your Next Home: Closing
The escrow agent makes sure that the terms and conditions of the agreement between the sellers and the buyers are completed in preparation of the sale being completed.
Escrow agents look for the following forms:
Upon finishing of all instructions of the escrow, closing can take place. At this time, all payments and dues for inspections, title insurance and real estate commissions are collected. The home's title is given to you and title insurance is issued per the policies of your individual escrow process.
The escrow holder receives a payment when the closing is complete. I'll keep you informed on the procedure.
The Escrow Holder Will:
- Prepare escrow guidelines
- Request title inquiry
- Meet the bank's guidelines as written in the escrow agreement
- Accept 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 met
- Disburse payments and finish instructions
The Escrow Holder Will Not:
- Give advice - the escrow company has to remain an impartial, third-party status
- Offer opinions about future tax estimations
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The Escrow Holder Will:
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The Escrow Holder Won't:
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Mortgage Escrow Account
A Mortgage Escrow Account is started to make payments for on-going 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.
Now you know more about how to close on your future home. And, you can be a more informed home buyer and future homeowner.