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  • Tax statements
  • 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
  • Whether it's your first home or your next home, I'll advise you through the process. Contact me.

    Escrow 101

     John Horton Realty can walk you through closing - 512-834-1600
    Let's talk about "escrow". To finish the sale of a house, a neutral, third party (the escrow agent) is employed to assure the process will close correctly and on time. A house is said to be in escrow when in the closing transaction, money is held by a third party on behalf of a buyer and a seller when the transaction is taking place. A simple way to understand the concept of what an escrow company does is to compare it to PayPal for online purchases.

    Clearing the final hurdles like taking in funds, completing forms, getting the documents for loans and liens, and making sure you get a clear title to the home before your purchase gets finalized are all part of the job of the escrow agent.

    The records the escrow agent may obtain include:

    You're ready to close when all steps are complete in escrow process. All outstanding payments and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the property is then given to you as new homeowner and appropriate title insurance is issued as noted in the escrow policy.

    The escrow holder gets a payment at the completion of closing. I'll keep you up-to-date on what comes next.

    The Escrow Holder Will:

    • Assemble escrow instructions
    • Request title search
    • Comply with lender's guidelines as outlined in the escrow agreement
    • Intake payments from the buyer
    • Prorate insurance, tax, interest and other payments according to instructions
    • Record deeds and other legal documents as instructed
    • Obtain title insurance policy
    • Close escrow when all instructions of seller and buyer are complete
    • Disburse monies and finish instructions

    The Escrow Holder Will Not:

    • Give advice - the escrow agent must maintain a neutral, third-party status
    • Give insight about future tax estimations
    The Escrow Holder Will:
    The Escrow Holder Won't:
    • Assemble escrow instructions
    • Request title search
    • Comply with lender's standards as outlined in the escrow agreement
    • Intake funds from the buyer
    • Prorate tax, interest, insurance and other fees 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 complete
    • Disburse monies and finish instructions
    • Give advice - the escrow agent must stay at a fair, third-party status
    • Give insight about tax implications

    Mortgage Escrow Account

    Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.

    Once you're comfortable with the escrow process, you can be a confident buyer.

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