Understanding how Escrow works – Hanley Agency, Inc., Pittsburgh, PA

Don't let inexperience with the real estate industry prevent you from becoming a homeowner. I can help you understand the process. E-mail me at hanleyappraisals@hotmail.com .

What To Expect When You're Closing in Pittsburgh, Pennsylvania

Hanley Agency, Inc. can walk you through closing - 412-422-7900

First, a little about "escrow". When you're closing on your new place, an escrow agent is used to assure the transaction will close properly and in a specific time frame. When funds are held by a third party in a transaction between a buyer and a seller, it's in escrow. For example, in an Internet auction, PayPal is the neutral third party that obtains the buyer's cash, and then hands over the money to the seller.

The escrow company is careful to assure that all terms and conditions of the seller's and buyer's agreement are met prior to the sale being finished. This includes securing payments and paperwork, completing required forms, and getting the release documents for any loans or liens that were paid off with the transaction, assuring you have a clear title to your home before the negotiated price is fully paid.

Escrow agents want to acquire the following records:

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 completion of all instructions of the escrow, closing can take place. All payments owed and fees are taken and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). The property's title is given to you and title insurance is issued per the steps of your particular escrow agreement.

The escrow company receives a payment at the completion of closing. As your real estate agent, I'll inform you of the acceptable form of payment.

The Escrow Holder Will:

Write escrow guidelines
Petition title research
Meet the bank's requirements as specified in the escrow agreement
Intake funds from the buyer
Prorate insurance, tax, interest and other payments according to instructions
Record deeds and other legal documents as instructed
Request title insurance policy
Close escrow when all instructions of seller and buyer have been finished
Disburse payments and finalize instructions

The Escrow Holder Won't:

Give advice - the escrow company must stay at a fair, third-party status
Dispense opinions about tax implications

The Escrow Holder Will:		The Escrow Holder Won't:
Write escrow guidelines Perform a title inquiry Meet lender's guidelines as specified in the escrow agreement Accept payments from the buyer Prorate tax, interest, insurance and other fees according to instructions Record deeds and other paperwork as instructed Obtain title insurance policy Close escrow when all instructions of seller and buyer are complete Disburse payments and finalize instructions		Offer advice - the escrow agent stays at an impartial, third-party status Dispense opinions about the outcome of your taxes

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.

Now you know more about how to close on your future home. And, you can be a more informed home buyer and future homeowner.

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