Rules for Using an Escrow Company

Whether it's your first home or your next property, I'll educate you through the process. Call me at 800-252-6633 and I'll give all the info you'll need to move forward.

Steps to Closing on a Home

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Let's talk about "escrow". When you're closing on your new house, an escrow holder is used to insure the process will close without problems and in a specific time frame. 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 agent makes sure that the terms and conditions of the agreement between the sellers and the buyers are performed in preparation of the sale being finished.

These are the records that escrow agents usually look for:

Requests for payment for various services to be paid out of escrow funds
Loan documents
Tax statements
Fire and other insurance policies
Title insurance policies
Terms of sale and any seller-assisted financing

Closing on the property takes place when the steps of the escrow are finished. All expenses like title insurance, inspections and real estate commissions are paid. The house's title is given to you and title insurance begins per the steps of your individual escrow agreement.

The escrow company receives a payment at the completion of closing. As your real estate agent, I'll let you know what is an acceptable way of paying.

The Escrow Holder Will:

Write escrow instructions
Perform a title search
Meet the bank's guidelines as specified in the escrow agreement
Receive payments from the buyer
Prorate interest, insurance, tax and other payments 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 finalize instructions

The Escrow Holder Won't:

Offer advice - the escrow agent must maintain a neutral, third-party status
Dispense opinions about tax implications

The Escrow Holder Will:		The Escrow Holder Won't:
Prepare escrow instructions Request title research Comply with the bank's standards as outlined in the escrow agreement Intake funds from the buyer Prorate interest, insurance, tax and other payments 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 have been finished Disburse payments and finish instructions		Offer advice - the escrow holder stays at an impartial, third-party status Offer opinions about the outcome of your taxes

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

This is a easy to understand guide about the escrow process. Your individual plan might be unique depending on your lender and your escrow holder.

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