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Steps to Closing on a Home

 Coast to Coast Property Brokers can walk you through closing - 8505856466
First, a little about "escrow". An escrow agent is hired to assure your place closes on time and the transaction goes smoothly. A place is said to be in escrow when in the closing process, funds is secured by a third party on behalf of two parties (in this case, a buyer and a seller) when the exchange of money takes place. For example, in an Internet transaction, PayPal is the reliable third party that holds the buyer's cash, and then sends the money to the seller.

The escrow holder makes sure that the terms and conditions of the agreement between the sellers and the buyers are reached prior to the sale being completed.

Escrow companies collect the following legal documents:

  • 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 property takes place when all of the procedures of the escrow are finished. 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 obtain the title to the house and the title insurance gets issued as noted in the escrow instructions.

When closing is completely finished, you'll submit a payment to the escrow holder. As your REALTOR, I'll let you know what is an acceptable way of paying.

The Escrow Holder Will:

  • Write escrow guidelines
  • Request title inquiry
  • Comply with lender's standards as written in the escrow agreement
  • Accept funds from the buyer
  • Prorate interest, insurance, tax and other payments according to instructions
  • Record deeds and other paperwork as instructed
  • Request title insurance policy
  • Close escrow when all terms of agreement of seller and buyer are met
  • Disburse payments and finish instructions

The Escrow Holder Won't:

  • Tell you what's best - the escrow holder must stay at a fair, third-party status
  • Offer opinions about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow guidelines
  • Perform a title research
  • Comply with the bank's guidelines as noted in the escrow agreement
  • Accept payments from the buyer
  • Prorate interest, insurance, tax and other payments according to instructions
  • Record deeds and other documents as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer have been finished
  • Disburse monies and finalize instructions
  • Offer advice - the escrow company has to remain an impartial, third-party status
  • Give insight about future tax estimations

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.

This is a simple outline of the escrow process. Your specific process could be different based on your lender and your escrow agent.

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