Whether it's your first house or your next home, I'll walk you through the process. Call me at 8505856466 and I'll give you more information.

What is Escrow?

 Coast to Coast Property Brokers can walk you through closing - 8505856466
First, a little about "escrow". To complete the sale of a home, a neutral, third party (the escrow holder) is brought into the picture to assure the transaction will close correctly and on time. When funds are held by a third party in a transaction between a buyer and a seller, it's in escrow. A simple way to think of what an escrow company does is to think of the use of PayPal for Internet purchases.

Settling the last details like obtaining funds, completing forms, obtaining the documents for loans and liens, and assuring you get a clear title to the house before your purchase gets finalized are all part of the job of the escrow company.

The documents the escrow company may secure include:

  • 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
  • Tax statements

Upon finishing of all instructions of the escrow, closing can take place. All payments owed and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the house is then transferred to you as new homeowner and correct title insurance is issued as noted in the escrow policy.

The escrow holder gets a payment when the closing is complete. I'll keep you up-to-date on the procedure.

The Escrow Holder Will:

  • Prepare escrow instructions
  • Perform a title research
  • Meet lender's guidelines as noted in the escrow agreement
  • Intake payments from the buyer
  • Prorate insurance, tax, interest and other payments according to guidelines
  • Record deeds and other legal documents as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer are complete
  • Disburse funds and finish instructions

The Escrow Holder Will Not:

  • Advise you - the escrow holder stays at an impartial, third-party status
  • Dispense opinions about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow guidelines
  • Perform a title research
  • Comply with the bank's guidelines as outlined in the escrow agreement
  • Intake payments from the buyer
  • Prorate tax, interest, insurance and other fees 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 are complete
  • Disburse monies and finish instructions
  • Advise you - the escrow company has to remain an impartial, third-party status
  • Give insight about future tax estimations

Mortgage Escrow Account

A Mortgage Escrow Account is used to make payments for on-going expenses while there is a loan on the house. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.

This is a simple outline of the escrow process. Your individual methods could be different based on your bank and your escrow agent.

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