First-Time Home Buying: How To Close on a Home
The escrow agent makes sure that all terms and conditions of the seller's and buyer's negotiated agreement are met prior to the sale being completed. This includes securing payments and certificates, signing required forms, and obtaining the release documents for any loans or liens that were paid off with the transaction, assuring you have a free title to your home before the agreed upon price is fully paid.
Escrow holders compile the following documents:
You're ready to close when all steps are done in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. You'll then obtain the title to the house and the title insurance gets dispersed as outlined in the escrow instructions.
The escrow agent gets a payment when the closing is complete. As your REALTOR, I'll let you know what is an acceptable way of paying.
The Escrow Holder Will:
- Write escrow guidelines
- Petition title inquiry
- Meet the bank's standards as written in the escrow agreement
- Receive 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 instructions of seller and buyer have been met
- Disburse payments and finalize instructions
The Escrow Holder Won't:
- Tell you what's best - the escrow agent must stay at a fair, third-party status
- Offer opinions about tax implications
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The Escrow Holder Will:
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The Escrow Holder Won't:
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Mortgage Escrow Account
Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.
Now you know more about how to close on your future home. And, you can be a more informed home buyer and future homeowner.
