Whether it's your first home or your next property, I'll advise you through the process. Call me at 512-834-1600 and I'll give you more information.
Completing the Transaction
Let's talk about "escrow". When you're closing on your new house, an escrow holder is used to assure the transaction will close correctly and on time. Escrow holders hold money for "safe-keeping" in an exchange between a buyer and seller. PayPal is a simple way to think of an escrow company.
The escrow company makes sure that the terms and conditions of the agreement between the seller and buyer are reached in preparation of the sale being finalized.
These are the legal forms that escrow companies usually look for:
- 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
You're ready to close when all parts are done in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. Title to the home is then given to you as new homeowner and correct title insurance is issued as noted in the escrow policy.
The escrow agent receives a payment at the completion of closing. As your real estate agent, I'll let you know what is an acceptable form of payment.
The Escrow Holder Will:
- Assemble escrow instructions
- Request title inquiry
- Meet lender's requirements as noted in the escrow agreement
- Intake payments from the buyer
- Prorate tax, interest, insurance and other fees according to guidelines
- Record deeds and other legal documents as instructed
- Request title insurance policy
- Close escrow when all instructions of seller and buyer are complete
- Disburse payments and finish instructions
The Escrow Holder Will Not:
- Advise you - the escrow company must maintain a neutral, third-party status
- Give insight about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
- Prepare escrow instructions
- Request title research
- Meet the bank's guidelines as noted in the escrow agreement
- Accept funds from the buyer
- Prorate tax, interest, insurance and other fees according to instructions
- 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 payments and finalize instructions
- Advise you - the escrow agent must stay at a fair, third-party status
- Dispense opinions about future tax estimations
Mortgage Escrow Account
Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.
Now you know more about being in escrow. And, you can be a more confident home buyer and future homeowner.
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