The process of buying a house for the first time can be overwhelming. Let me help you. E-mail me at EdKarazin@remax.net to get some free information.

Completing the Transaction

 RE/MAX Performance can walk you through closing - (919) 924-4991
First, a little about "escrow". When you're closing on your new place, an escrow holder is used to assure the process will close properly and in a certain amount of time. Escrow holders hold money for "safe-keeping" in a deal between a buyer and seller. For example, in an online transaction, PayPal is the reliable third party that obtains the buyer's funds, and then disburses the money to the seller.

The escrow holder insures that all terms and conditions of the seller's and buyer's agreement are reached prior to the sale being completed. This includes getting funds and records, filling out required forms, and obtaining the release documents for any loans or liens that have been cleared with the transaction, assuring you have a free title to your property before the negotiated price is fully paid.

These are the documents that escrow companies usually look to collect:

  • 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
  • Tax statements
  • Fire and other insurance policies

Closing on the home happens when the steps of the escrow are finished. All expenses like title insurance, inspections and real estate commissions are paid. You'll then obtain the title to the property and the title insurance gets dispersed as noted in the escrow instructions.

When closing is in it's last step, you'll make a payment to the escrow agent. You'll know when it's time to submit the form of payment.

The Escrow Holder Will:

  • Prepare escrow instructions
  • Request title search
  • Meet lender's guidelines as written in the escrow agreement
  • Accept funds from the buyer
  • Prorate interest, insurance, tax and other payments according to guidelines
  • Record deeds and other documents as instructed
  • Obtain title insurance policy
  • Close escrow when all terms of agreement of seller and buyer have been finished
  • Disburse funds and finish instructions

The Escrow Holder Will Not:

  • Offer advice - the escrow agent stays a neutral, third-party status
  • Dispense opinions about the outcome of your taxes
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow guidelines
  • Perform a title inquiry
  • Comply with the bank's guidelines as outlined in the escrow agreement
  • Accept payments from the buyer
  • Prorate insurance, tax, interest and other payments according to guidelines
  • Record deeds and other documents as instructed
  • Obtain title insurance policy
  • Close escrow when all terms of agreement of seller and buyer have been met
  • Disburse funds and finalize instructions
  • Tell you what's best - the escrow holder stays a neutral, third-party status
  • Give insight about tax implications

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

Once you have the rules of the escrow process down, you can be a confident buyer.

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